Multifamily vs. SFH (w/ MIL)

[Aubrey Darger]

Hi all! We're new to investing here in Utah and are excited about joining the robust community!! We are looking at either purchasing a duplex or SFH (with a MIL or accessory) in the $350-$450k range in Utah County. While cash flow & the 1% rule aren't really applicable here, do both appreciate similarly? Should we lean more towards house hacking in a SFH, as their appreciation is growing steadily? I'm worried that with interest rates predicted to rise, will a duplex be worth as much? I have also heard that if you have a SFH w/ MIL, you can't rent both apt's out - it has to be owner occupied or you have to sell - is that true?

And then in terms of financing, I've been on the phone with multiple lenders and they've said that you have to put down 15% conventional for a duplex, but could just do an FHA for 3.5% (so we could have more cash in reserve). Are there upsides/downsides to consider for each one? Any advice and expertise is so helpful! Thanks in advance, Aubrey