Hard to decide between triplex and duplex (first deal)

[Tatiana Raid]

So I'm at a transition period in my life where I am wanting to dive into real estate and build up passive income but I am also in search for a new place to live (moving for work, currently renting). Naturally I am leaning toward house hacking and have been searching for a 2-4 unit.

I live in a pretty expensive area so the market is crazy but I still want to make it work since I'm here for a while. So I've found 2 different places.

1st multi-family: Duplex, one side is a 1 bed 1 bath (the side I'd move into) other side 6 bed 2 bath currently being rented out by the room, $535/mo each ($3210 monthly income). Needs minor repairs mostly aesthetics. Needs new roof, got a quote for 15k. Asking price 489k.

Financing options from Loan Officer:

FannieMae/Conventional:  15% downpayment required.  Interest rate is 4.25%.  Total estimated monthly payments is $2,670.13 (2075.28 Principal and Interest, $125 estimate homeowner’s insurance, $407.50 estimated taxes, and $62.35 Mortgage Insurance Premium).

OR

FHA: $427,000 is the maximum loan amount because of the County limit for duplex's with FHA ($434,300 has to include the upfront mortgage insurance premium of $7,500) which equates to about 12.7% down payment required. Interest rate is 3.50%. Total estimated monthly payment would be $2,765.65 (1950.97 Principal & Interest, 125 estimated insurance, 407.50 estimated taxes, 282.18 mortgage insurance).

The issue I am having is the fact the the rooms are being rented out separately and it could be considered a boarding house. And cannot finance it through conventional, va or fha. Was wonder if this would fall under commercial financing ?

The seller is slightly open to owner finance but has not gone over terms and is trying to put his money somewhere else so I know it's probably not the terms I am looking for. Looking for a bit of experienced guidance on this one.

2nd multi-family: Triplex one studio, the other two are 1 bed 1 bath each. Move into studio, other two are rented out at 1850/mo combined. Units have individual meters. Kitchens are outdated but still move in ready.

Financing options: VA; interest rate is 3.5% and estimated total monthly payment total is $1,767.78.

Asking price: 337k

This one is much simpler but barely any cash flow and possibly paying out of pocket but can get financing for it.

My dilemma is which one to pursue, a friend of mine suggested the triplex because of VA financing, and after a year of barely any cash flow I'd get around 700 cash flow once I move out.

But the duplex, even tho financing is tough, would cash flow well above 700 even with me house hacking it.

How do I finance this creatively to make it work out?