Rental Property Investor · Ocean City, NJ · Member since 2019 · 15 posts · 14 votes
Hello everyone,
I’m looking into house hacking and wanted to hear some opinions on house hacking a duplex vs a single family home.
It seems like a duplex is the better option as far as numbers wise with halving multiple units able to be rented once I move out of the property. But with duplexes being so hard to find in my market should I settle for a single family house hack?
Investor · Austin, TX · Member since 2013 · 662 posts · 1k+ votes
2y
@Sam Trulli, obviously go where you find the numbers work. However, I am a big duplex fan. Long term I think a duplex will beat out a SFH. Starting out, either can work but if you go the SFH route, at sometime in the future one of two things will occur. You will tire of having strangers live in your house or you will eventually move. Moving will cause issues as to who or how will you manage multiple tenants in one unit or you will just rent to one tenant giving you less rent total than renting out two sides of a duplex.
A duplex on the other end is easy to manage in both situations. You can get a roommate on your side if you want but when the time comes that your tired of having a roommate you can easily not renew and not take a big hit with lack of income since it is only one room or so that you are eliminating. You always have income coming in between tenants with a duplex. That is a big deal as cash flow is king. Also if you end up renting the SFH vs a duplex it is easier to get two $1000 renters vs one $2000 renter. So ease of management is a big plus with a duplex. However, if you can't find one in your locale then you can fall back to the SFH house hack.
@Sam Trulli Hi Sam. I think some of the answer lies in your personal goals and in the amount of money you have available to you.
I'm not sure what the price difference would be in your market between a SFH and a duplex. I'm also not sure if it's feasible for you to find a 3/2 or a preferably a4/2 or a 4/3 that's affordable in your market. The more bedrooms and bathrooms you have the higher rent you can command.
I owned bed and breakfasts for 24 years and house hacked them living among the guests. It never bothered me. I now house hack a duplex and my partner hates having the tenant sharing a wall with us. It’s a matter of personal preference.
House hacking either a SFH or a duplex is a great way to cover your mortgage and start saving up money for your next down payment. If you've been following your market closely (think daily) for several months and there's been no affordable duplexes come available then I'd recommend going with the SFH.
Investor · Austin, TX · Member since 2013 · 662 posts · 1k+ votes
2y
@Sam Trulli, obviously go where you find the numbers work. However, I am a big duplex fan. Long term I think a duplex will beat out a SFH. Starting out, either can work but if you go the SFH route, at sometime in the future one of two things will occur. You will tire of having strangers live in your house or you will eventually move. Moving will cause issues as to who or how will you manage multiple tenants in one unit or you will just rent to one tenant giving you less rent total than renting out two sides of a duplex.
A duplex on the other end is easy to manage in both situations. You can get a roommate on your side if you want but when the time comes that your tired of having a roommate you can easily not renew and not take a big hit with lack of income since it is only one room or so that you are eliminating. You always have income coming in between tenants with a duplex. That is a big deal as cash flow is king. Also if you end up renting the SFH vs a duplex it is easier to get two $1000 renters vs one $2000 renter. So ease of management is a big plus with a duplex. However, if you can't find one in your locale then you can fall back to the SFH house hack.
Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes
2y
First, I would tell you, figure out where you want to live. I'd say for the long term, a duplex will be appreciating more than a SFH (all things equal). However, you need to check the numbers and see if a duplex is worth buying in the particular areas you want to live in.
I live in a house hack, specifically a SFH that I was able to split into two units (if I were you, I'd aim to do the same). It can be annoying at times but for the most part, if you have a good tenant, it shouldn't be too bad. Getting the right people into your SFH or duplex is the most important decision you'll make imo. Now if you can find a SFH with an ADU, that would be a good option as well if a duplex is too expensive/unavailable.
Thanks Ray! How do I look for SFH that would be good candidates to turn into Duplexes? Wouldn't I run into issues with zoning if I were to do this?
Thanks.
Well you'll have to make sure the SFH has enough parking and is big enough for the split. I didn't change anything for my SFH except add an internal door so it is all legal. No changes to electric, plumbing, etc. So to answer how do you pick the right house, you'll need to go there in person and see how easily it can be done. You may have to add an external door which you'll definitely need a permit for.
New to Real Estate · NJ · Member since 2023 · 21 posts · 19 votes
2y
@Sam Trulli Hey Sam, I'm just learning about house hacks and based on what another person has also said in this thread, I think long term its probably easier to manage tenants for a duplex once you move out. I'm also curious to see if you're looking by the shore because I also asked in my recent post if anyone knew if it would be feasible to house hack in that market.
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
2y
@Sam Trulli, have you ever thought about exploring single-family homes with in-law suites that can be sourced as an STR? That could be a viable strategy in your market (OC). Similar concept as a duplex but without the fierce level of buyer competition.
MSFP, CFP, Financial Advisor · San Francisco Bay Area · Member since 2020 · 66 posts · 53 votes
2y
I own both a duplex and a single-family home that I househacked. I think it all depends on your market and what the numbers look like there. I live and invest in the East Bay Area, CA.
I had to settle for a not-great neighborhood when I bought my duplex because the ones in decent areas go for much much higher than SFH. It's been a great investment numbers-wise but not so great having to deal with the issues that come from a bad neighborhood (crime, trash,etc)
for the SFH my approach was different. I bought a 4bed/2ba home in a great neighborhood and converted the detached garage into an ADU while living there. A couple of months after having someone rent the ADU I moved out and I now get rent from both units that is higher than what I would get from a duplex and all in cost was lower than buying a duplex.
Cleveland, OH · Member since 2022 · 811 posts · 578 votes
2y
Sam,
It really depends on your goals and what you're comfortable with.
I personally lean towards the multifamily route because I have a girlfriend and a dog which isn't ideal for a room by room rental. I'm looking to buy a 2-4 unit this summer (most likely a duplex based on my area).
If you're okay with living with roommates, there is no issue at all with doing a single family house hack. I think doing either of these is better than throwing your money away on rent.
Rental Property Investor · Ocean City, NJ · Member since 2019 · 15 posts · 14 votes
2y
@Byron Valles
On the SFH with the Garage that you eventually moved out from, are you renting the 4/2 unit room by room? Or are you renting that unit to one tenant? Also is the garage rented to one single tenant?
Rental Property Investor · Ocean City, NJ · Member since 2019 · 15 posts · 14 votes
2y
@Nikash Rajeshbabu
I feel like if your going to buy on one of the islands you could do a sort of house hack. Where you would rent out the property say June-September to vacationers for the peak summer season. Then live in the unit October-May. I’m down in south Jersey so this might be different where you live. Lmk your thoughts.
On the SFH with the Garage that you eventually moved out from, are you renting the 4/2 unit room by room? Or are you renting that unit to one tenant? Also is the garage rented to one single tenant?
A couple in their late 60s rents the SFH and a single mom with a teen daughter rent the 450sqft ADU. I guess if I rented the SFH by the room I could get higher cash flow but that neighborhood is not suited for that, IMO.
I’m looking into house hacking and wanted to hear some opinions on house hacking a duplex vs a single family home.
It seems like a duplex is the better option as far as numbers wise with halving multiple units able to be rented once I move out of the property. But with duplexes being so hard to find in my market should I settle for a single family house hack?
I am househacking single family with ADU/basement. Basically it's duplex with single family price LOL so I get the both benefits.
Realtor · Sacramento, CA · Member since 2019 · 242 posts · 152 votes
2y
Looks like you've gotten a lot of great feedback, but I'll throw my two cents in as well. A lot of it has to do with your personal preference as well as where you live. We chose to househack a single family room by just having roommates as opposed to buying a duplex because I personally love the way a SFH neighborhood is compared to MFH neighborhoods (generalizing here of course). We also liked the way a SFH appreciates over time vs a duplex.
Looks like you've gotten a lot of great feedback, but I'll throw my two cents in as well. A lot of it has to do with your personal preference as well as where you live. We chose to househack a single family room by just having roommates as opposed to buying a duplex because I personally love the way a SFH neighborhood is compared to MFH neighborhoods (generalizing here of course). We also liked the way a SFH appreciates over time vs a duplex.
do you end up making changes to the house ? This year I built 2 bathroom for househacking LOL
New to Real Estate · Yuma, AZ · Member since 2023 · 280 posts · 246 votes
2y
I am doing what @Michael Dumler stated. We (me, my wife, and two boys) bought a single family home with a guest studio attached to it. We rent the studio on AirBnb/VRBO and it alone covers more than half of our mortgage. Pretty crazy. We clean it ourselves as well to keep an eye on it and keep costs down. It has been great for us and allowed us to accelerate our plan. At some point, we are considering listing both "units" on AirBnB/VRBO and moving to another single family home.
I am doing what @Michael Dumler stated. We (me, my wife, and two boys) bought a single family home with a guest studio attached to it. We rent the studio on AirBnb/VRBO and it alone covers more than half of our mortgage. Pretty crazy. We clean it ourselves as well to keep an eye on it and keep costs down. It has been great for us and allowed us to accelerate our plan. At some point, we are considering listing both "units" on AirBnB/VRBO and moving to another single family home.
Investor · Lafayette, IN · Member since 2017 · 3 posts · 3 votes
2y
I have house hacked multiple ways. Rented a room in my house, multi unit and lived in one unit with a friend, currently I have a little studio in my back yard I rent and for my mom I added an internal door and did a small addition to add a bathroom and kitchen to the the house and it is rented as a mother in law suite. And if my husband would let me I’d rent one of our guest bedrooms to a travel nurse. It depends on your tolerance level. I have a high tolerance level because house hacking has made me an enormous amount of money in my life and helped to grow my little portfolio. It took me ten years to talk my husband into buying a property that we could house hack. Let’s just say as we head to Mexico for two months this winter, he has no regrets of finally doing it… lol
Our current situation (studio in back yard) is the most lucrative I've ever done and the property has appreciated nicely in the five years we have owned it. I think SFH versus multi unit has a lot of variables at play as to which is better. As a general rule I would say multi for all the reasons people listed. But multi doesn't have to mean attached (like our situation) and you can get the best of both worlds!
ALWAYS think outside the box and look for value add!!!
I have house hacked multiple ways. Rented a room in my house, multi unit and lived in one unit with a friend, currently I have a little studio in my back yard I rent and for my mom I added an internal door and did a small addition to add a bathroom and kitchen to the the house and it is rented as a mother in law suite. And if my husband would let me I’d rent one of our guest bedrooms to a travel nurse. It depends on your tolerance level. I have a high tolerance level because house hacking has made me an enormous amount of money in my life and helped to grow my little portfolio. It took me ten years to talk my husband into buying a property that we could house hack. Let’s just say as we head to Mexico for two months this winter, he has no regrets of finally doing it… lol
Our current situation (studio in back yard) is the most lucrative I've ever done and the property has appreciated nicely in the five years we have owned it. I think SFH versus multi unit has a lot of variables at play as to which is better. As a general rule I would say multi for all the reasons people listed. But multi doesn't have to mean attached (like our situation) and you can get the best of both worlds!
ALWAYS think outside the box and look for value add!!!
same same... i also keep buying house with adu and/or basement.
I have house hacked multiple ways. Rented a room in my house, multi unit and lived in one unit with a friend, currently I have a little studio in my back yard I rent and for my mom I added an internal door and did a small addition to add a bathroom and kitchen to the the house and it is rented as a mother in law suite. And if my husband would let me I’d rent one of our guest bedrooms to a travel nurse. It depends on your tolerance level. I have a high tolerance level because house hacking has made me an enormous amount of money in my life and helped to grow my little portfolio. It took me ten years to talk my husband into buying a property that we could house hack. Let’s just say as we head to Mexico for two months this winter, he has no regrets of finally doing it… lol
Our current situation (studio in back yard) is the most lucrative I've ever done and the property has appreciated nicely in the five years we have owned it. I think SFH versus multi unit has a lot of variables at play as to which is better. As a general rule I would say multi for all the reasons people listed. But multi doesn't have to mean attached (like our situation) and you can get the best of both worlds!
ALWAYS think outside the box and look for value add!!!
Congrats on all the success!
SFH creatively converted to Multi is such an underrated play for sure! SFH+ADU is what I'm doing again next here in the SF Bay Area.