I'm normally a buy and hold small multi-family investor. I prefer to invest locally, and the environment has changed over the last couple of years. It is no longer a buy and hold environment from the standpoint of making profits from the rental income on a property as they've become too expensive. My wife and I are a little older and looking at starting our family very soon.

We're currently house hacking a duplex where the unit we're in would rent for around $1500. We're looking at purchasing a house that could be used as a duplex where we would house hack again. The price has come down almost $200,000 dollars and it's in the neighborhood we've been wanting to raise our family, but... we'd only be able to pull in $1250 - $1500 in rent from the other unit at this location, and it would put us into even more debt.

Looking for other investors thoughts on whether or not to jump at this to ride out possible inflation, or to wait and hope for a market downturn.

Current Situation:

• Duplex
  • mtg + tax + ins = -$1300
  • rent = $900
  • net = -$400

Possible New Situation:

• Duplex (w/refinance)
  • mtg + tax + ins = -$1900
  • rent = $2400

• House
  • mtg + tax + ins = -$2580
  • rent = $1250

• net = -$830

Thanks in advance for any input you can give.