SFH vs MFH for First Ever House Hack and # of Bed/Bath

Norfolk, Virginia
House Hacking
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SFH vs MFH for First Ever House Hack and # of Bed/Bath

Daniel CordovesPro Member
Member since 2023 · 2 posts · 1 vote

Hello! I am very interested in house hacking in the Hampton Roads Area (Norfolk, Newport News, Hampton, and surrounding cities) and one of the criteria I'm trying to figure out is whether I should look for a single family property or multi family property. I'm 23 and have no problems living around random people. My ultimate goal is to have my mortgage completely covered or even cash flow, if possible, and it would be great if the property appreciated over time. I know this is a lot but additionally, I am curious to know how the number of beds/baths affects the overall result in terms of cash flow for both single family and multifamily.

Any insight is extremely appreciated!

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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 924 votes
7mo

@Daniel Cordoves

For a first house hack, focus on how many rent streams you can create and how efficient the layout is. Small multifamily usually beats a SFH because multiple units help cover the mortgage, while extra bedrooms typically boost rent more than extra bathrooms (within reason).

That’s why many beginners gravitate to Midwest markets, lower entry prices, solid rental demand, and a much better chance to break even or cash flow while you build experience and equity.

[email protected]614-418-6081
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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 924 votes
    7mo

    @Daniel Cordoves

    For a first house hack, focus on how many rent streams you can create and how efficient the layout is. Small multifamily usually beats a SFH because multiple units help cover the mortgage, while extra bedrooms typically boost rent more than extra bathrooms (within reason).

    That’s why many beginners gravitate to Midwest markets, lower entry prices, solid rental demand, and a much better chance to break even or cash flow while you build experience and equity.

    [email protected]614-418-6081
    1Reply
  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    7mo

    A couple of thoughts:

    1. Keep in mind that if the property cash flows putting 3.5% down, then why wouldn't an investor putting 20% not only buy it but could probably pay more. Cash flow is extremely important but I wouldn't focus on just living for free. 

    2. The advantage of MFU is you can use the income from the fully rented units to qualify. Although I've very happy with house hacking my first condo, looking back house hacking a 2-4 unit would have been much more profitable.

    3. The more bedrooms the better. Even if it means enclosing dining rooms to create an additional bedroom. I've noticed that having a least a 2 bed to 1 bath ratio is good. So if it is a 4 bedroom unit, having at least 2 bathrooms. Alternatively because typically primary bedrooms are larger and have their own bath, maybe you can double up in those rooms. So if a room normally rents for $1,000, maybe you charge $550 per bed and they share that attached bathroom. That way it isn't really that much more of an inconvenience on your lifestyle.

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  • Jacob SloopBusiness Member
    Rental Property Investor · Virginia Beach, VA · Member since 2020 · 274 posts · 111 votes
    7mo

    Hey @Daniel Cordoves

    That's exactly what I help people do in the area !  I'm the house hack expert, been in real estate and the area a longggg time and would love to help you.  I'm sending you a message now but feel free to reach out, you can see my reviews and info in the profile 

    [email protected]757-235-0369
    Jacob Sloop538 Reviews
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  • Mike PaolucciBusiness Member
    Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 493 posts · 550 votes
    7mo
    Quote from @Daniel Cordoves:

    Hello! I am very interested in house hacking in the Hampton Roads Area (Norfolk, Newport News, Hampton, and surrounding cities) and one of the criteria I'm trying to figure out is whether I should look for a single family property or multi family property. I'm 23 and have no problems living around random people. My ultimate goal is to have my mortgage completely covered or even cash flow, if possible, and it would be great if the property appreciated over time. I know this is a lot but additionally, I am curious to know how the number of beds/baths affects the overall result in terms of cash flow for both single family and multifamily.

    Any insight is extremely appreciated!

    Short answer - you can't go wrong with either one because you'll do well over time with both. 

    For house hacking and building a portfolio quicker, I'd recommend a 2-4 unit property to house hack. With the right one (likely a 3 or 4 unit), you'll be able to cover the mortgage and hopefully some of your living expenses. That'll be huge for saving money and building for the future. Don't worry so much about cashflow right now, this is a long term asset and as long as your mortgage is covered by the tenants, you're winning. It'll cashflow just fine when you move out. 

    Single family homes are great to own for longer tenant stays and long term appreciation. Exit will also be easier because it appeals to a broader buyer pool, but you'll be limited on mortgage payments when you have vacancies. At least with a MF, you'll have tenants in place paying rent to help with the mortgage if one of the tenant leaves. 

    [email protected]614-892-9184
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  • Laura ShinklePro Member
    Realtor · Charlotte, NC · Member since 2017 · 357 posts · 292 votes
    7mo

    The first thing I would think about is "what does the market have available?"

    I'm not in your area, but in my area multifamily is incredibly rare and expensive. It's much better to focus on a SFH and househack the rooms. BUT, if you have lots of multifamily in the area, that seems like an even better scenario since you can rent the whole units you aren't living in AND have roommates (assuming it's bigger than a 1 bedroom).

    But, my best advice would be to take a look at the market, get a budget in mind for a monthly mortgage you can sustain if you have vacancies, and see what's available. Interview a few Realtors to make sure you find the right one who shares your vision for what's possible. Don't pigeon hole yourself into saying you ONLY want a multi family property and then you can't find one and give up entirely. Be flexible with what the market offers. Good luck!

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  • Colin Wright
    Investor · Hampton Roads Virginia · Member since 2021 · 3 posts · 1 vote
    7mo

    Hey Daniel! I am an active house-hacker/ room by room investor/ agent in the area. I started out about your age and I had those same questions whenever I was getting started! There is just not that much information out there about this strategy. I decided to go with single family homes with ADU's for my first couple of properties and its had many benefits through the years. I was able to figure out quickly what works and what doesn't when being the landlord of roommates.

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