House Hacking in San Diego

[Hunter Harmon]

Given my circumstances, I'm exploring the possibility of house hacking in San Diego for my first property. I've been searching for residential multi-families in the $1M - $1.3M range to offset my mortgage by renting out other units. However, despite several months of searching, I'm struggling to find properties that break even, especially with current interest rates. My goal is to at least match my current monthly expense of $3k (After all units are rented) while aiming for long-term appreciation. I have around $165k in savings, with an option to withdraw $16k from my 401k after taxes and fees. Additionally, I can receive $40k in gifts from my father and ability to access a $20-60k loan from family at 4% APY interest. I'm planning to pursue a conventional loan with 10% down payment. I've noticed slightly better prospects in the $1.4 M - $1.6 M range, but I'd need to co-sign with my father to qualify. However, he wants to be off the loan within two years of purchase. Given these circumstances, do you think house hacking in San Diego is still a wise investment for me? Are there any alternative strategies or adjustments I should consider?