Preapprovel – Owner-Occupying, Looking for Advice on buying duplexes

[Matt Moore]

Hey everyone,

I’m excited to say I’ve been preapproved by my bank to purchase property in the Pittsburgh area. Specifically looking for a duplex. My plan is to owner-occupy—live in one unit and rent out the other. This will be my first multifamily purchase, and I’m trying to be as prepared as possible before I go under contract. I’d really appreciate insight from anyone with experience in Pittsburgh or with house hacking duplexes. Specifically, I’m hoping to learn more about: 

What to look for in a turnkey duplex (red flags, must-haves, common issues)

How to properly run the numbers

Rent assumptions

Vacancy, maintenance, CapEx

Cash flow vs. breakeven for owner-occupants

Tips and tricks for being a first-time landlord

Basically anything you wish you knew before buying your first duplex 

Maybe pittsburgh-specific advice (neighborhoods, rent expectations, taxes, utilities, etc.) I want to stay on the Northside of the city if possible. 

I’m also very open to learning alongside someone more experienced—whether that’s informal mentorship, deal analysis walkthroughs, or just sanity-checking assumptions.

Thanks in advance for any advice or direction. I’ve learned a ton from this community already and appreciate everyone willing to share their experience.

[Jeremy Taggart]

@Matt Moore I'd go 3-4 units if you can, duplexes are tougher to cash flow at high leverage now with the rates/prices being higher.

It's still doable to have pretty much your whole mortgage covered while living there in a decent area with 3-4 units in Pittsburgh.

Vacancy 5-10%, Repairs and capex $80-$120/unit/month depending on the property and area, and property management as well if you decide you want to eventually do that 10-12% factoring in lease up fees.

I house hacked 7 times and my criteria on my last few was finding the most expensive 3-4 unit I could, while still being at least break even from day 1 using market rents while fully rented out. That will typically give you the highest ROI when you factor in principal paydown, appreciation, and depreciation. The cheaper ones might cash flow a tad better, but won't give you as high of an ROI once you factor in all 4 wealth generators. Not in all cases but in most.

House hacking is a trade off of being comfortable versus the numbers on a sliding scale pretty much. So figuring out where you want to be on that scale up front generally helps you nail down areas/property type.