House hacking seems particularly useful for FHA-approved LOW DEPOSIT owner-occupied loans, because you can buy up to a four-plex, aimed to 100%+ cover your mortgage repayments!

Thank you for your input, I have started researching this issue to make sure I can cover my bases.

The price is $10 and that's simply to cover the cost of the room we rent out.https://www.meetup.com/Toronto-Annex-Real-Estate-Investors/ 

When I do short sales, I get pictures of every single little problem I find regarding the property; get a licensed contractor to give you a detailed cost estimate to remedy it.

The home needs a lot of work ( I have pictures) and is asking $189k.  

In the text is a link with pictures of everything the contractor intends to buy.

@Charles S.The 50 % Rule States: That 50% of gross scheduled income (GSI) goes out over time to cover expenses not including debt coverage.The 1%, 2% and the 50% rule is meant to act as a quick analysis tool, to insure the deal is actually deal.

Sara has already covered some of the above]

@Jen TeskeI don't know the area so I can't speak about the market you're in, but just by looking at the #s, you're missing a few things: Water, Sewer, Heat, Electric, Gas, Trash, Lawn/Snow removal, Cap Ex, Property Management (even if you're self managing, this needs to be factored in if you want to scale), and although you did include vacancy, if a real vacancy were to occur on a SF you'd have a 100% vacancy, making it negative cashflow since you'd have to cover all the expenses, not knowing when it'll be filled again. 

As long as 75% of the rental income covers the mortgage payment (PITI), you are good.