House hacking a duplex

[Slaughter Paul]

I’m planning on house hacking a duplex for 185k. However, I have a dilemma with choosing the best loan option. I plan to move out after one year and put someone in my unit and repeat the process again. My goal is to own the property long term.

Option 1: 15% down @ 2.625% with closing cost @ $6100 and total cash needed to close is $31,000

Option 2: 5% down @ 3.125%. Total cash to close is $14,750-$15,500. This depends on the current rate and if the bank pays any closing costs. This number consists of your 5% down payment, closing costs (title fees, appraisal), and prepaid (homeowners insurance and property taxes). PMI would be approx $53 a month. All of this depends on my credit score.

P.s I was able to get seller to split closing cost. Additionally, the property will need rehab, which can run me $5000 - $10,000 depending on what updates I decided to do first.

Thanks for your help!