I’ve seen firsthand how house hacking can be a powerful strategy for building cash flow and wealth, especially in multi-family properties like the 4-plex you’re targeting.

Removing or lowering those LLPA's would level the playing field in terms of pricing, but making investment property loans more affordable is not going to help decrease prices. 

LLC's are welcomed, no DTIs, and less paperwork...happy to connect.Also check out this BP article that explains how DSCRs play into BRRRRs: https://www.biggerpockets.com/blog/brrrr-loans-what-are-the-...

This property also plays a strategic role in the broader development project for the area, which includes 12 patio homes and two duplexes.

Even a typical water heat replacement would set you back signficantly.There's plenty to the puzzle that i am unaware of but with what you've outlined here i would consider passing on the property.you know you need managementyou know you need to remove at least one tenantyou know cashflow is meager after considering management.i personally wouldn't recommend a client take on the risk for such a paltry pay out out of state.Even when considering long term appreciation the average amount of headache one assumes with a property will bog you down before the long term play pays off.

Your testimonial can be the most powerful evidence/message/value proposition.How much were you able to save monthly by househacking vs. renting or owning a single family property?

With rental real estate, you can usually deduct up to $25,000 in passive losses, like depreciation and expenses, if you actively participate in the rental activity.But here’s where income comes into play: if your modified adjusted gross income (MAGI) is $100,000 or less, you can take the full $25,000 deduction.

@Catherine Curtsinger To play a little devil’s advocate I have been house hacking for 30 years.

Their goals and upcoming upcoming purchases may come into play. 

Usually the increased buying power and shared expenses can help make the numbers tie out, especially when you consider getting creative with occupancy (maybe yall split time at the house and spend time elsewhere through out the year).Im seeing more and more interest from folks who are looking to do this sort of thing in tandem.