House hacking single family home vs purchasing duplex

[Lucero Galvan]

I've seen different opinions on finding homes to house hack: look for small multi-families, find homes that have finished basements / or ADU, find homes to make a duplex out of OR don't do any of the above. For a first time investor, what are the pros and cons of buying a SFR and converting it into a duplex versus going ahead and purchasing a duplex. In my area (Raleigh, NC) for a duplex, my lender is requesting 5% down payment and 6 months of reserves equaling PITI, which would leave me at $0 in savings. Versus a single family home purchase would be 0% down. I'm trying to weigh my options.

[John Lyszczyk]

@Lucero Galvan My first thought is you have to go with what makes sense on paper. Not sure if being cash poor with no reserves is a good idea for a first time investor. If the 0% down SFR route cashflows when you "rent by the room" that would be a great first investment. Don't force a deal just to get in the game if you're not financially ready, but make a game plan to get to where you need to be as quickly as possible.