This basis would be divided between the two houses. 

Quote from @Jenny Banner: Good Afternoon,I have flipped a few houses up in Connecticut.

When I did my first house hack, I used a 5% down conventional because I was in a similar situation to you.  

It's a house sectioned into 3 apartments each a 3-bed 3-bath.

My DP was around $20k and when I sold it I cleared over $200k.Good luck to you and let me know if there's ever anything else you'd like to know about house hacking.

One of the biggest mistakes newer investors make is over-rehabbing houses and spending too much money on these low ARV homes.

People are not choosing the cheapest housing available.

Don't be discouraged by the lower returns—house hacking is often about long-term wealth-building, and your primary residence can offset some of those mediocre numbers.Make sure you're accounting for local trends and realistic rents—sometimes expected rent growth is overly optimistic, or costs like repairs might be underestimated.

@Curtis OsaweyStarting with Section 8 housing can be a great strategy, especially since it provides consistent rental income.

There is demand for it and demand in this area for affordable housing, in a tourist area where plenty of people have vacant, second/third homes for seasonal fishing and hunting.