House Hacking My First Property that Doesn't Cash Flow

[Caleigh McDonough]

Thank you for taking the time to read my post! I am thinking of moving from AZ to Charlotte, NC May 2025. I found a new build I like and in my price range while visiting Charlotte this weekend. I plan to purchase the property with 5-10% down, live in it for a year or two with a roommate, then rent it out full-time and repeat! (at least for the first few properties) I do not need cash flow in the short run but my ultimate goal would be to retire early from my investment properties. 

I know Charlotte is growing, so I'm hoping for some appreciation long-term and I know cash flow can be harder to come by these days. However, after running the numbers accounting for insurance, PMI, taxes, vacancy, capX, property manager, etc. the property is estimated -1.85% cash on cash return (-$600/mo) once I fully rent the property. To be conservative, I assumed rents will be on the lower end of the spectrum. CoC just about breaks even if I assume rents are on the higher end of the spectrum.

My questions are: 

1. Should I wait until I can put 20% down on a property to decrease the monthly mortgage payment? I believe this is one reason none of the deals I analyze are cash-flowing.

2. Are any <$350k single-family deals cash flowing in Charlotte? Again, not my main goal but it also doesn't seem wise to be short $600/mo. 

3. Anything else I should be thinking about? I typically wouldn't look at new builds but it seems to be very reasonably priced. The community is new and secluded with trees but is NW of Sugar Creek & SE of Oakdale. 

Happy to provide any more context!