Beginner Question: Calculating Multi Family Hacking Rent

[Makoto Hawkins]

Hello all. I am starting off learning the basics of house hacking and wish to clarify a quick detail. When evaluating a property to be 'hacked', should I include the potential rent on all units (including the unit Id live in) within my calculations? How does this protect from a false sense of financial stability when realistically I will not be collecting rent from myself?

Best,

Makoto

[Makoto Hawkins]

To follow up on my question (as I might have found my answer), I figure I should look at my calculations both ways, living in one unit AND renting out all units. This way I can view my cash flow if I were to ever move out. I also read that when calculating my live-in cash flow, it is sometimes not bad to come up negative if this value is still lower than what one would be paying in rent elsewhere.

Please do correct me if my thinking is wrong or too narrow-sighted.

To expand on the topic, knowing that cash flow may be small or negative when house hacking, is there a tolerable minimum Cap rate before I should be seeing a red flag on a property?