How do I determine if a multifamily is a good deal for a house hack?

Question

I’m 19 years old and currently focused on saving and preparing for when the right opportunity comes. My plan is to use a 3.5% FHA loan to get started and then refinance into a conventional loan after 12 months.

For those of you with experience:

• What key metrics should I focus on when analyzing a multifamily deal for a house hack (cash flow, CoC return, DSCR, etc.)?
• What mistakes did you make on your first house hack that I should avoid?
• Do you recommend starting with a duplex, triplex, or fourplex as a first purchase?
• When refinancing from FHA to conventional, what should I prepare for in terms of equity requirements, appraisal, and costs? 
• I’m based in Kissimmee, near Orlando, FL, and I’d also love to hear insights on what areas in this market are best for finding solid multifamily house hack opportunities.

What key metrics should I focus on when analyzing a multifamily deal for a house hack (cash flow, CoC return, DSCR, etc.)?

What mistakes did you make on your first house hack that I should avoid?

Do you recommend starting with a duplex, triplex, or fourplex as a first purchase?

When refinancing from FHA to conventional, what should I prepare for in terms of equity requirements, appraisal, and costs?

I’m based in Kissimmee, near Orlando, FL, and I’d also love to hear insights on what areas in this market are best for finding solid multifamily house hack opportunities.

Alexander Medina · Answer

Hey Orlando, great plan! For a first house hack, focus on cash flow, CoC return, and local rental demand. Duplexes or triplexes are usually easiest to start with.

Jason Nightingale · Answer

@Jackie Carmichael I am looking at house hacking a triplex or a quadplex as well. When you say

"Cash flow after reserves: Run it with conservative rents + all expenses (PITI, mgmt, maintenance, vacancy). Even if you’re living in one unit, underwrite as if you weren’t."Do you mean and the rent for the unit you are living in when you use the Rental Property Calculator?

Thanks

- Jason

Jackie Carmichael · Answer

@Jason Nightingale

Great question, Jason — yes, when you’re running numbers in the Rental Property Calculator, you’ll want to underwrite as if all units are rented at market rate, even if you plan to live in one. That way you know the property stands on its own as a solid investment, regardless of your personal living situation.

From a lender’s perspective, especially on DSCR or rental loans, we’re looking at whether the property cash flows with full occupancy. If it pencils out that way, then house hacking just makes your numbers stronger.

Jennie Ballard · Answer

Thank you for the link to workbook!

Jackie Carmichael · Answer

@Jennie Ballard You're welcome!

Jackie Carmichael · Answer

Hey Orlando, I tried to DM you this but it didn’t go through, so I’m posting it here for you and anyone else who might find it useful.

I put together a House Hack Analyzer Sheet that helps you underwrite deals quickly and consistently. It breaks down:

• PITI, maintenance, vacancy, and reserves (auto-calculated)
• FHA vs Conventional vs DSCR loan scenarios (including the 12-month seasoning refi window)
• Monthly cash flow + breakeven rent numbers
• Deal summary (cash-to-close, NOI, cash-on-cash, DSCR)
• Sensitivity analysis to see how rent changes impact cash flow

PITI, maintenance, vacancy, and reserves (auto-calculated)

FHA vs Conventional vs DSCR loan scenarios (including the 12-month seasoning refi window)

Monthly cash flow + breakeven rent numbers

Deal summary (cash-to-close, NOI, cash-on-cash, DSCR)

Sensitivity analysis to see how rent changes impact cash flow

It’s designed so you can plug in your numbers and compare multiple house hack deals side-by-side without overcomplicating things.

https://docs.google.com/spreadsheets/d/1-P0XqCH4QQAVMs6UsILo...

Hope it helps you (and others) run numbers with more confidence. Let me know what market you’re mainly targeting — I’d be glad to share how different lenders are looking at FHA-to-DSCR transitions right now.

Jackie Carmichael · Answer

@Orlando Ferreira

Hey Orlando, glad the tips were helpful — sounds like you’re approaching this the right way (conservative numbers, quality tenants, solid reserves). That’s exactly how you set yourself up for long-term wins.

I’ll send you over my House Hack Analyzer Sheet — it breaks down:

• PITI, maintenance, and vacancy assumptions (auto-calculated)

• FHA vs conventional refinance scenarios, including the 12-month seasoning period

• Cash flow + equity growth projections side-by-side

• Breakeven rent numbers so you know where your risk floor is

It’s designed to make underwriting fast and consistent, so you can compare multiple deals at a glance and see which ones actually pencil.

Also, once you have a deal you like, I can walk you through how lenders look at it — whether that’s setting it up for FHA now, then refi’ing into a DSCR loan later to free you up for deal #2.

Jackie Carmichael · Answer

Orlando, love the mindset — starting at 19 with a house hack will set you up big time. A few thoughts:

1. Key metrics for analysis:

• Cash flow after reserves: Run it with conservative rents + all expenses (PITI, mgmt, maintenance, vacancy). Even if you’re living in one unit, underwrite as if you weren’t.

• Cash-on-Cash return (CoC): This matters less in a house hack because you’re lowering your living expense, but aim for at least 6–8%+ long-term.

• DSCR: Banks don’t look at DSCR on FHA, but running it yourself (NOI ÷ debt service) is a great habit. Shoot for 1.2x+ as a cushion.

2. Mistakes to avoid:

• Underestimating repairs & CapEx (roofs, HVAC, plumbing). Always budget reserves.

• Ignoring tenant quality — a bad tenant in a duplex feels like a roommate nightmare.

• Buying with too thin of margins because you’re “living for free.”

3. Duplex vs. Triplex vs. Fourplex:

• FHA allows up to 4 units. If you can swing it, a fourplex maximizes income streams.

• That said, duplexes are easier to find/finance and might be your entry point.

• Focus more on deal quality than unit count.

4. FHA → Conventional Refi:

• Lenders typically want 75–80% LTV.

• So you’ll need forced appreciation (renovations) or natural market growth.

• Factor in appraisal, origination fees, and closing costs (~2–3%).

• Plan to season for 12 months before refi.

5. Kissimmee/Orlando Market:

• Tons of multifamily + short-term rental overlap.

• Look near major employers + transportation corridors where long-term rental demand is strong (not just vacation rentals).

• Duplexes/triplexes around Haines City, Poinciana, and South Orlando often pencil better than right by the tourist corridor.

If you want, I can send over a house hack analyzer sheet that breaks down cash flow, CoC, and DSCR — it’s a simple tool but makes underwriting 10x easier when you’re starting out.

Orlando Ferreira · Answer

Hey Jackie,

Thanks a ton for taking the time to share all these tips, I really appreciate it! 🙌

I'm running numbers conservatively with PITI, maintenance, and vacancy, and focusing on deal quality over unit count. Your notes on FHA conventional refi and the 12-month seasoning period are super helpful, and I'm also keeping tenant quality and reserves in mind.

I’d love to check out the house hack analyzer sheet you mentioned, it sounds like it would make underwriting deals a lot easier as I get started.

Thanks again for sharing your experience!

Orlando Ferreira · Answer

Hey Jackie,

Thanks a ton for taking the time to share all these tips, I really appreciate it! 🙌

I’m running numbers conservatively with PITI, maintenance, and vacancy, and focusing on deal quality over unit count. Your notes on FHA conventional refi and the 12-month seasoning period are super helpful, and I’m also keeping tenant quality and reserves in mind.

I’d love to check out the house hack analyzer sheet you mentioned, it sounds like it would make underwriting deals a lot easier as I get started.

Thanks again for sharing your experience!