Cash-on-cash return for this home is 20.50% and the estimated time to recover original cash invested will be4.88 years if rent remains the same and no major expenses occur.

Which may come in to play if your finally 1031 rental property turns out not to make a good rental but an ideal retirement home for yourself, eventually.

I'm thinking of doing the BRRRR method but house hacking it since it's my first home.

For the first 12 months only 25% of the debt is counted towards the DTI, after 12 months none of it counts towards their DTI.If someone is desperate enough to sell their home sub-to, chances are good that they aren't buying a new property within a year anyway.

Would you buy a home here for $800k for this strategy? 

Not home owners or land lord policies.

A 4 bedroom unit would be in the $100K range.This means I'm looking for older homes in the older parts of the city.The buildings may be more rundown and need some extra maintenance but it makes it easier for me to get cashflow out of them.Your approach should always be to find deals, offer 15-20% under asking price, be prepared to negotiate, and lean on your team of experts for the heavy lifting. 

There are benefits to the arrangement you mention however you would have to put everything in writing and be very careful. 

Hello, our rental home had a/c unit drains into the p trap in one of the bathroom and clogged the sink in upstairs.

More great tips.