Hi @Dalton Toelkes ,
It's always exciting to be thinking about a deal! From what I have read my thoughts are in line with @Brandon Guite . I am all about house hacking but I think you're a little to close to the edge on this one... and if things go sideways after you close you could be in serious financial pain that could last years or decades. Many people like to think they can get into real estate with very little money, and in some instances, you can. But for me buying a house hack is not one of those scenarios.
You need cash for your earnest money deposit and inspections at least. In Oregon, the typical EMD is 1 percent and the costs for inspections is usually around $500-$1,000. So if you were here I'd recommend having at least $4,750 just to get started. Yes, there are programs here too that will grant people money for the downpayment but that money usually comes back to you at closing. You need that cash up front. While you could use credit cards and/or a line of credit to pay for the inspections, paying for those could affect your debt to income ratio enough that you would no longer qualify for the house.
The next part to keep in mind is how are you going to get renters, how quickly will you rent out all the rooms, and will you be able to stay afloat if you cannot find all the renters you need for a few months? And if they sign leases that means when you sell the house the new owners will inherit the tenants. And if that's the case you will then be selling the property as a rental and your pool of buyers shrinks.
Lastly, and my biggest concern, is reserves. What if your water heater goes out and you have to replace it... and you haven't rented any of the rooms out? Do you have the funds to cover it? This is a recipe for credit card debt. Reserves are your safety cushion. People calculate the amount they want/need in a couple ways including 1) having X number of months (ie 6 months) of liquid cash at the ready that is only for emergencies or 2) a lump sum. I believe @Scott Trench started out his house hacking career with $20,000 in reserves (that after the down payment and closing costs) then every property he added he put an additional $10,000 in his reserve funds which he put in before making the next purchase (if my memory serves me).
Here's my final take; if you had enough cash for the EMD, inspections, and reserves I'd say go for it (even though a year is a very short time to own a property). However, whether you're going to move to KC or not, if you don't have enough cash I'd pass on this deal and instead take aggressive action to save money. Find a side hustle (Uber/Lyft is a great way to make extra money), move in with a friend or someone to really drive your housing costs down, whatever you need to do. That way you can build a solid foundation of cash and be ready to weather the storms when they come. The Bigger Pockets Money Podcast is an amazing place to start and get ideas and inspiration (if you don't already listen to it!). Take your time, don't rush into a deal that you may regret later, and be in this game for the long haul.
Good luck!
