House Hacking Multi Family w/Family - What do I need to think about as a Begininer

[Monica Gonzalez]

I've been looking to buy my first rental and want to minimize my risk considering the current housing market.  I own my house and have the low rates that were around during COVID.  With that I approached my sister who is a long time renter if she would be interested in going in on a multi family with me (2-3 doors) with the intention of her living in one unit and paying a portion of the mortgage. I would supply the down payment/closing costs needed. 

I recognize that we still need to look at this from the standpoint of our goals (long term rental with the goal to pass on to our kids) and that it make sense from a finance standpoint rental income.  We will be looking at the Redlands, Loma Linda, Yucaipa area, where we will be lucky if we can break even with rent. 

Q1 - We will have 20% down if needed, but is it better to put the least amount required down and have mortgage insurance? 

Q2 - I'm currently reading @Dave Meyer Start with strategy, he talks about it's not just about money that "you" can contribute to a deal.  How do you quantify "time" into money to ensure a deal is equitable.  

Q3 - What else should I be thinking about? 

Thanks in advance!