Hi Carlos, Tucson is a fairly inexpensive place to start house hacking compared to a lot of the west coast.

They offer an all in one policy, and also had a great rate compared to the others.

any suggestions on how I should compare these 2 options?

I'm also concerned older homes have already seen their biggest jump in capital appreciation and don't have as much potential for price growth compared to newer homes.What are your thoughts on older homes?

I recognize that my net worth is small compared to some of the people I associate with.

If it's a fixer upper you would account for the rehab and purchase price then compare against the ARV.

Create a simple spreadsheet or written list to compare the features of each and identify the ones that align with your requirements.

Traditional lending doesn't lend on C5. 

I am trying to calculate my returns over a 10-year period using the rent-by-room strategy, which results in significantly more cash flow than traditional rentals.

You'll have a slight disadvantage compared to the local population, but nothing that should crush you.