Am I too ambitious for my first property?

Logan, Utah
House Hacking
1wFollow

Am I too ambitious for my first property?

Hayden Billings
Member since 2026 · 28 posts · 13 votes

Hi, 24 yrs old, me and my wife are really trying to get out of the apartment. I’d like to get us into a duplex and rent out the other side. I can’t seem to find a place that lets me do that while reducing my current rent price by any substantial metric. Am I missing something? Is there a strategy that can bring my monthly payment closer to what the standard mother-in-law duplex will rent out at? Or would it be wiser to just get myself into something cheap now so I’m at least building equity, then focus on upscaling from there?

7Reply
18,885 views

Most Popular Reply

Patrick KrawczykowskiPro Member
Investor · Chicago, Chicago IL · Member since 2026 · 45 posts · 54 votes
1w

@Hayden Billings were also going to be releasing a pocket listing (off-market) marketplace directly on BiggerPockets in a couple weeks. Stay tuned.

BiggerPockets
5Reply
See this reply in the discussion

45 Replies

Jump to latestLatest
  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 1k+ posts · 710 votes
    1w

    You're not too ambitious — you're just shopping in a market where listed duplexes rarely pencil for a house hack. The gap you're seeing is normal: sellers price for owner-occupants, not investors. Run the full payment, not just principal and interest — taxes and insurance are where cheap deals stop being cheap. Then compare your half of the real payment against your current rent honestly. The other lever is buying below list, off-market or through wholesalers, where the price can actually meet the rent. I underwrite rentals to the 1% rule: monthly rent at least 1% of the purchase price. If the other side's rent can't get near that, the deal isn't there yet, whatever the strategy.

    1Reply
  • Ametria Chaney
    Realtor · Memphis, Shelby County · Member since 2026 · 348 posts · 123 votes
    1w

    You're not too ambitious — house hacking is one of the smartest first moves a buyer can make, and the fact that you're running the numbers before you buy puts you ahead of most people. The gap you're seeing is normal: most listed duplexes are priced for owner-occupants, not investors, so few will beat your rent payment on paper. That doesn't mean the deal isn't out there — it usually means looking beyond what's listed. Talk to a local lender about an FHA or low-down-payment loan so you know your monthly number (payment, taxes, insurance), then work with an investor-friendly agent to hunt off-market and below-list deals. As for buying something cheap now: it's a fine plan B, but buying and selling again in a couple of years has real costs, so make sure the equity you'd build beats what you'd spend getting in and out.

    1Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 700 posts · 292 votes
    1w

    Congrats on getting started this young, @Hayden Billings. You're not missing something obvious, and you're asking the right questions.

    The tricky part is that your payment isn't just the mortgage. Taxes, insurance, mortgage insurance on a low down payment loan, and a maintenance cushion all add up, so a duplex often doesn't beat your current rent on paper right away. What it does do is turn that payment into equity, with a tenant covering a big chunk of it. Even breaking about even while you build equity is a win compared with paying rent.

    A few ways to bring the number down: look at owner-occupied loans, which usually need far less down than investor loans (FHA is about 3.5% and some conventional programs are around 5%, depending on your credit and the property). Also check for first-time buyer or down-payment assistance programs in your area, and if either of you has military service, ask about VA. Another option is a house hack in a single-family or a duplex in a slightly less trendy neighborhood, where the price-to-rent ratio is better. You could even rent out spare rooms in a regular house. A duplex isn't the only way to do this.

    If the numbers only work by stretching yourselves thin, buying something cheap and solid and building from there is perfectly smart. Your first property doesn't need to be your forever property. Run a few real listings through a spreadsheet with conservative rent, vacancy and repair numbers, and talk to a lender early so you know your real budget. Keep at it, you're closer than you think!

    [email protected]
    WEMBO CPA532 Reviews
    WebsiteView Page
    1Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      Thank you so much! I had no idea about down payment assistance. I’ll get looking right away.

      0Reply
  • Chris ColtonPro Member
    Investor · San Antonio, TX · Member since 2026 · 115 posts · 49 votes
    1w

    Love this, Hayden — you're not too ambitious at all, you're just asking the right questions early.

    I'm still learning the house hack side myself, so I really appreciate you laying out how you're thinking about it.

    What's the duplex hunt looking like around Logan for you two right now?

    210-756-9075
    1Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      Lots of options here, just don’t have the experience to know what’s a good deal and what’s not. Sitting down with a mentor later today to hopefully work some of it out.

      0Reply
  • Ray WilliamsBusiness Member
    Lender · Denver, CO · Member since 2017 · 181 posts · 83 votes
    1w

    Hayden, you're not missing anything obvious, but there are two levers nobody has brought up yet. First, conventional loans now allow 5% down on an owner-occupied 2 to 4 unit, so FHA at 3.5% isn't your only low-down option. With a decent credit score, the conventional mortgage insurance can come in lower than FHA, and FHA keeps its MIP for the life of the loan when you put less than 10% down. On a $400k duplex that difference can be real money every month, so have a lender run both side by side.

    Second, the rent from the other unit can help you qualify. Lenders typically count 75% of the market rent from the appraiser's rent schedule as income. That doesn't lower the payment, but it can open up properties you assumed were out of reach. (FHA adds a self-sufficiency test on 3 and 4 units, but a duplex doesn't have to pass it.)

    On comparing it to rent, here's how I'd frame it: take the full payment, subtract realistic rent from the other side, then subtract the principal you're paying down each month. If what's left is close to your current rent, you're ahead, because apartment rent builds nothing. If it's way over, buying something smaller and solid now is a perfectly good first step. Your first place doesn't have to be the perfect one.

    1Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      Okay! I am meeting with a lender today. I’ll have him run both. THANK YOU for the advice.

      0Reply
  • Nyisha Walton
    Lender · Houston, TX · Member since 2026 · 133 posts · 39 votes
    1w

    Hayden, a duplex house hack is a great first move. FHA lets you buy a 2-unit you live in with a low down payment, and lenders can count part of the other side's rent toward qualifying, which helps a lot. This is what I do, so send me a note with your price range and I'll run a couple of scenarios for you.

    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1w

    @Hayden Billings

    wow - lots of AI responses. real person here. can you let us know what you mean by "reducing my current rent price by any substantial metric"? i don't know your market. if you're renting for - i am making this up - $1500 a month, and your mortgage on a duplex would be $2500, but you'd get $1200 in rent, you're out of pocket $1300 a month - slightly less than what you were paying.

    but i don't know where you're located, how many properties you've looked at, etc.

    and don't buy your primary off-market. gee whiz.

    1Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      Good to know hahaha

      Those numbers are fairly close. After speaking with a lender yesterday I got numbers that are more real for me than the zillow estimate and I definitely see what you are saying. I think I just need to get out of my apartment as smart and fast as possible so I’m not losing out on equity. But yes, my target numbers look very similar to what you just guessed. Now, another question: would it be smart to just hop into a low-cost single family home so I can start building equity? Something that mortgages around what my rent is now? Just wondering what possible smart options are.

      0Reply
  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    1w

    House hacking is life changing and a great way to jump in! My first house hack and property buy was a 4 unit, these tend to have better returns and work better for minimal out of pocket house hacks then a 2 unit. The down payment difference at just 5% down which is all you need even for conventional owner occupancy programs is not a big deal either on a 4 unit vs 2 unit. Run some numbers on 4s see if works better.

    1Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      4s are hard to find for me for some reason. I ran the numbers and I can pull it off. Only BARELY tho. And at the right price.

      0Reply
  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 699 posts · 237 votes
    1w

    Hey Hayden!

    Nicholas makes a good point, a lot of it depends on your market and what you're paying now. One thing nobody's mentioned yet: look for duplexes where the units aren't the same size, like a 3 bed and a 1 bed. You live in the smaller side and rent out the bigger one, and that's usually what gets your out of pocket closest to what you're paying in rent now. Even if it only breaks about even at first, you're building equity instead of paying a landlord. Started with a househack myself, both of mine I did the 5% conventional route. Feel free to reach out if you'd like!

    [email protected]734-645-7722
    Gold Star Mortgage Financial Group547 Reviews
    WebsiteView Page
    0Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      I found one just like that! Sadly, it needed a lot done, so I don’t think I’ll be buying it. Idk how much renovation I’m ready for.

      0Reply
  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 1k+ posts · 663 votes
    1w

    I wouldn't feel like you have to buy something just to get out of the apartment. If you find the right duplex, having the other unit help with your payment can be a great way to get started. Just make sure you're looking at the whole picture—not only the mortgage. Taxes, insurance, maintenance, vacancy and repairs all need to be part of the numbers. If the right duplex isn't there yet, I'd keep saving and looking. There's nothing wrong with renting a little longer while you wait for a property that actually works for you.

    Spark Rental Co-Investing Club583 Reviews
    WebsiteView Page
    0Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      Good perspective. I can’t help but feel like I’m just burning money while renting though. Is there an upside to staying in an apartment? Even if I were in a trailer home, I’d still be building equity, right? Is there a downside to hopping into a small property for a year or so while I save?

      0Reply
  • G. Brian DavisPro Member
    Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 903 votes
    1w

    I wouldn’t buy a property that doesn’t really fit your goals just to start building equity. You’re already thinking about the right strategy with the duplex; you may just need to be patient until the numbers work. I’d focus on what the other unit can realistically rent for and how much that reduces your housing cost after taxes, insurance, repairs and vacancy. If you can bring your monthly cost down meaningfully while building equity, that can be a much better first move than buying something you’ll want to replace in a couple of years.

    0Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      I see that. That’s the ideal situation, I just can’t help but feel like the longer I stay in my apartment, the more money I’m flushing away.

      0Reply
  • Randy Schell
    Hinton, WV · Member since 2026 · 287 posts · 46 votes
    1w

    Hayden, wanting to get your little family out of rent pressure is a really good instinct, not too ambitious at all. Renting out a room in a place you live in can soften the payment a lot, and starting with something modest that you can breathe in is okay too....

    Randy, Bunklow

    0Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      Am I right to think that staying and renting is a bad option?

      0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    1w

    How are you doing your math?

    @Nicholas L. did a great example of how to look at your "housing cost".

    • The only thing to add to his example is you'd want to add in the $1200 in rent for your unit when running any ROI or Cash-on-Cash metrics.

    What no one has mentioned is one of the BEST ways to leverage house hacking - buying a fixer-upper and investing your sweat equity!

    If I was starting out again with what I know now, I'd look to acquire and owner-occupy a 2-4 unit property with a low-down payment mortgage. FNMA allows 5% down only on 1-2 units, but FHA allows 3.5% down for 2-4 units.

    I’d also look into buying an “ugly” property that needs work, thus unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower. 

    Instead of needing additional cash to cover the renovations, I'd use a renovation mortgage that allows renovation costs to be included in the purchase mortgage. The FHA 203(k) or FNMA HomeStyle Renovation loan are options. They both require you to get bids from licensed contractors for any required work, but after closing you can do the work yourself.

    To maximize my cashflow and gain landlording experience, I'd do STR and MTR in the other units, as well as the other bedrooms in my unit.

    Since most cities won’t allow basement rental units, I’d consider finishing the basement, just well enough for me to live down there (cities don’t care if owner chooses to live in basement), so I could rent out ALL the units/rooms – for even MORE cashflow!

    I'd save all my cash and monitor the value of the property to hopefully refinance to get rid of the monthly PMI/MIP cost and maybe even pull some funds out of the property for my next investment. Of course, I would NOT take a mortgage that rents would NOT support the PITI + vacancy + maintenance.

    Depending on how close I was to having 20% equity in the property, I'd consider using some of my cash to pay down the mortgage when I refinanced to get rid of the monthly PMI/MIP. Otherwise, I'd save my cash for the next acquisition.

    I’d also be posting, starting NOW, on every social media platform and telling everyone I knew that I was looking for more real estate deals. I’d aim for low downpayment land contracts and lease options.

    I’d evaluate if I wanted to repeat the 2-4 unit renovation  process again or if I had the 20% down to target 5+ units.

    While still living in the property, AFTER any refi, but before moving to the next property, I'd also explore securing a HELOC to tap my equity for emergencies.

    Good luck with whatever you decide to do!

    [email protected]248-209-6824
    Logical Property Management4.9462 Reviews
    WebsiteView Page
    0Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      See at my stage the ugly properties are scary. I have NO problem getting my hands dirty. I just don’t know how ugly is too ugly.

      1Reply
  • Richard NeesePro Member
    Rental Property Investor · South Vinemont, AL · Member since 2026 · 69 posts · 29 votes
    1w

    Where theres a will theres a way. Its not too ambitious. Learn how to find a deal or you will pay for it. Make it a part time job to find the right one (It will pay better in the end).

    1Reply
  • Cierra Aranya
    Worthington, OH · Member since 2026 · 9 posts · 1 vote
    1w

    Hayden, you're not missing anything. In a lot of markets a duplex house hack won't bring your housing cost down to zero right away, and that's normal. A few things that help when you run the numbers:

    1. Compare your total cost of living, not just the mortgage. Include taxes, insurance, a maintenance reserve, and any utilities you'd cover for the other unit. Then subtract the rent the other side brings in and compare what's left to your current rent. Even if it's about the same, you're building equity instead of paying a landlord.

    2. Ask your lender how much of the expected rent from the other unit can count toward your qualifying income. On owner-occupied 2–4 unit loans, part of the projected rent can often be used, which can change what you qualify for.

    3. Look at the long game. After the required owner-occupancy period, you can move out and rent both sides. Your next purchase can work the same way, and a lot of people build their first few doors like that.

    4. Don't skip the reserves. Have a cushion for a vacancy or a big repair, because one surprise can wipe out a year of savings from the hack.

    Buying something cheap first isn't wrong. But if a duplex keeps your costs close to what you pay now, you get equity and a rental at the same time, which is hard to beat for a first purchase.

    1Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      Wonderfully put. This solves so many concerns. Thank you for putting it crystal clear.

      0Reply
  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 959 posts · 347 votes
    1w

    @Hayden Billings you're not missing much. In a lot of markets the listed duplexes just don't pencil the way the house hacking examples make it sound. My first place was a house we lived in and fixed up ourselves, and the real gain came from the work we put into it, not from rent covering everything. If you're handy, a place that needs work might get you closer than a finished one, since you're buying below what it'll be worth and adding to it. Just go in assuming there's more behind the walls than you can see. Hope that helps.

    [email protected]484-791-6200
    CORE Team | Realty ONE Group Supreme548 Reviews
    WebsiteView Page
    1Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      Yes! I have a brother who’s a contractor who I’m hoping to lean on a bit. There’s no shortage of fixer uppers out here.

      0Reply
  • Ryan BakerBusiness Member
    Lender · Strongsville / Cleveland, OH · Member since 2026 · 152 posts · 38 votes
    1w

    Hayden, a duplex is not too ambitious, and the financing is the part that makes it possible. An owner-occupied loan on a two-to-four unit can be done with a low down payment, and lenders can often count part of the expected rent from the other unit toward qualifying, which helps close the gap with your current rent. The key is to compare the all-in monthly payment (taxes, insurance, mortgage insurance) against what the other side will realistically rent for, instead of the price alone. If the numbers are tight, a smaller down payment program plus a modest cash reserve is usually better than waiting. Happy to walk through the numbers on a quick call, my direct line and email are on my profile.

    (Drafted with AI assistance.)

    [email protected]330-548-3340
    1Reply
  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 270 posts · 99 votes
    1w

    You're not necessarily being too ambitious. With a duplex, the financing structure and how rental income is considered can make a big difference in your monthly payment. FHA and conventional options are worth comparing before ruling out house hacking.

    Have you spoken with a lender about what you could qualify for?

    1Reply
    • Hayden Billings
      OP
      Member since 2026 · 28 posts · 13 votes
      1w

      Yes! We are working alongside my agent to make it all possible.

      0Reply
  • Keenan Fitzpatrick
    Realtor · Anchorage, AK · Member since 2017 · 230 posts · 179 votes
    1w

    In our market in Anchorage, Alaska it can be tough and our market is better than a lot of them. Assuming you're using an FHA or 5% down conventional loan, you have to adjust your expectations on that return. It's easy to see a high rate of return but not a high volume of cashflow because of the small down payment. Normally, I see a buyer paying something similar every month to what a renter would pay. Some are better. Some are worse. A 4plex is going to lower your monthly expense if you can swing it. Keep in mind that there are all the other benefits of real estate (tax benefits, appreciation and principle paydown) that add to cashflow. And rents, at least in my market, go up about 3% per year. Best of luck to you in your search!

    1Reply
  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    1w

    In my opinion you are not missing anything. The reality is at the high OO LTV if you buy off the mls with market financing you will be paying substantially more to house hack then rent. Anyone that believes otherwise, I challenge them to post their underwriting. It will be aggressive in many/most aspects and likely not include mgmt (do you like to work for free?).

    Two recent studies came to the same conclusions that it is initially cheaper to rent than purchase in virtually every large city market in the US. Note Owner Occupied (OO) do not typically have vacancy. PM, tenant turn over, or bookkeeping expenses. In addition they often have lower maintenance/cap ex. This implies in virtually every large city market, high LTV rentals are cash negative. It does not get much higher LTV than a 96.5% LTV fha loan or a 95% LTV OO loan.

    Does this imply I am against house hacking? No! But I believe it is inaccurate to imply that the new house hacker will save anything in the initial years from renting with a high LTV OO loan. The reality is they will almost certainly be paying more than if they were renting.

    However, they will be getting equity pay down. They will be learning about RE investing. The largest expense (mortgage) is typically fixed cost versus rents typically increase. In a few years there is a good chance that they are living there with a total expense less than renting.

    RE is challenging now. Without value add, mls purchases using market financing are unlikely to produce a good return in the near term. Patience is likely required to achieve a good return. Note I am not that patient so I do not purchase off mls using market financing without a value add, but I also am not just starting in my RE investing (I also have crazy low rates for access to capital - the money I am in the process of accessing is at 4%).

    The reality of off market purchases is they typically require work and/or have risk. I recommend virtually everyone start with a mls purchase using an agent (even though I did not start with mls purchase using an agent). There are some off market purchases that are candidates for wholetail, but most require more effort than cleaning out and light items.

    Good Luck

    2Reply
  • Vad P.
    Investor · Santa Rosa · Member since 2022 · 14 posts · 4 votes
    1w

    A slightly different perspective here as I was recently in the same boat. You're in a lower rent-to-price market, which makes it harder to find a househack as a new investor that either cashflows or reduces your rent substantially. You might want to try to invest out of state first, get the knack of things, and then, with a little bit of confidence and experience, try again and find a local off-market deal that will pencil for your househacking goals. Good luck!

    0Reply
  • Dale Hanley
    Member since 2026 · 4 posts · 1 vote
    1w

    Honestly, I think you're on the right track. I'd definitely explore the duplex strategy a little further before settling for a cheaper property just to get into ownership. Look into owner-occupied financing options and focus on the numbers after rental income, not just the total mortgage payment. Even if the tenant doesn't cover the entire mortgage, having someone help offset your housing costs while you build equity can put you in a great position long-term. Just don't rush into a deal that stretches you financially. At 24, you have time to be strategic and set yourself up right. The goal is to make your first purchase work for you, not just own property for the sake of owning it.

    D.H.

    0Reply
  • Dan NelsonBusiness Member
    Real Estate Broker · Chicago and Kansas City · Member since 2016 · 116 posts · 105 votes
    1w

    @Hayden Billings You're not too ambitious. I think you're comparing it to the wrong thing.

    Most people check whether the other side's rent covers the whole payment. That's a test for a rental. A house hack is a test for your housing. The real question is what it costs you to live there each month, after the other side pays rent, next to what you pay for your apartment today.

    Say your apartment is $1,400. The full duplex cost, with a little saved for repairs, is $2,400 a month and the other side rents for $1,300. You live there for $1,100. That's $300 a month less than your rent, and part of every payment pays down your own loan instead of your landlord's.

    So run three numbers on every duplex: your rent today, the full monthly cost (payment, insurance, yearly bills split by month, a little for repairs), and what the other side really rents for. Check real listings near it, not the seller's guess.

    If your cost to live there lands near your rent today, that is still a strong first move. You learn landlording with one tenant next door, and the next building gets easier.

    [email protected]773-295-1751Podcast Guest on Show 2 “Slam Dunk” Small Multifamily Deals in 2023 (and Where to Find Them)
    Dan Loves Houses4.983 Reviews
    WebsiteView Page
    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1w

    Hayden, congrats on getting serious at 24. I don't think you're too ambitious, the gap you're seeing is just how duplex pricing works when owner-occupants are bidding too. Two levers that haven't come up yet: low-down owner-occupant financing (FHA allows 3.5% down on 1-4 units, and some conventional programs allow 5% on a duplex), and on 2-4 units a lender can usually count part of the other unit's projected rent toward qualifying, so ask a lender how that would work for you. Also ask for seller concessions or a rate buydown instead of chasing a lower price, since that often moves your monthly payment more.

    If a true duplex won't pencil, a single family with a finished basement, an ADU or an extra bedroom can get you most of the benefit. That's basically how I started with a house hack in 2020, and it taught me more than any book. The cheap-house-first route can work too, as long as it's one you could rent out later. Happy to connect and compare notes.

    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9124 Reviews
    WebsiteView Page
    0Reply
  • Ty Burns
    Lender · Salt Lake City, UT · Member since 2013 · 152 posts · 23 votes
    1w

    Not too ambitious at all. A duplex as a first property is a solid move if the numbers work while you live in it.

    Fellow Utahn here, I'm in SLC and flip and hold rentals. On how ugly is too ugly: cosmetic stuff is where you make your money. The things I'd walk away from or price in heavily are foundation problems, a bad sewer line, and old or unsafe electrical. Always get the sewer scoped on an older place, it's cheap compared to what it can save you.

    I'd also lean toward a duplex where your share of the payment lands close to what you pay in rent now, over a cheap single family you plan to resell. The other unit keeps paying you after you move out.

    If you want a second set of eyes on a deal, feel free to message me.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free