However, they approach financial health from different angles.The 50% Rule is a quick estimate that suggests operating expenses (excluding mortgage principal and interest) will roughly equal 50% of the property's gross income.The DSCR is a more precise calculation (Net Operating Income / Total Debt Service) that determines if a property generates enough income to cover its debt obligations.Deal example:- Class C middle class neighborhood- 4bd / 2ba single family house- ARV: 190k- Purchase: 105k- Rehab: 35k- Market rent: $1,400-1,525- Section 8: $1,475- Property manager: 10%- Taxes: 125 month- Insurance $1250 yr- HOA: $55 month- purchased and rehabbed with all cash.

I'm looking to create the dream with many fix and flip opportunities this year in Kansas City and I want to outperform the incredible year I had in 2024. 

As I approach the end of my current lease, I'm eager to embark on a journey of house hacking with multifamily properties.

However, with careful planning and a proactive approach, you can navigate these hurdles successfully.

And right now is working incredible hours and having to now commute to Santa Clara from Portland..

Can try to reposition to Class B, but neighborhood may impede these efforts.Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years.

@Matt Powers there are endless possibilities and combinations of how you could approach this opportunity.

Quote from @Matt Weddon: Really what generated this question was a section from Brandon and Heather Turner's Management Book, which has been incredibly informative and helpful.

Are there better markets or hybrid approaches I should consider (e.g., smaller multifamily properties that accept Section 8 tenants)?

2025 is approaching fast, and I know many of us have already started our business planning for the year ahead.