You've decided to house hack your first property. You're living in one unit and renting out the others to cover your mortgage. Smart move. But you're stuck on a question that trips up a lot of new investors: should you start with a duplex or go bigger with a triplex?
This isn't just a gut-feel decision. The math actually tells you which one makes more sense for your situation.
The Core Tradeoff
A duplex is simpler. One tenant, one lease, one relationship to manage. You share a wall with someone, collect rent, and hopefully cover most of your housing cost.
A triplex means two tenants. More rent coming in, but also more complexity. Two leases, two sets of maintenance requests, two people to screen and manage.
The question isn't which is "better." It's which one gets you closer to your actual goal: eliminating your housing cost, building equity, or generating cash flow.
Down Payment Reality Check
Both duplexes and triplexes qualify for owner-occupied financing if you live in one unit. That means you can put down as little as 3.5% with [FHA](https://entp.hud.gov/idapp/html/hicostlook.cfm) or 5% with conventional loans. This is the single biggest advantage of house hacking.
But here's where the math starts to diverge.
Triplexes cost more. In most markets, you're looking at a 20-40% price premium over a comparable duplex. That premium isn't just about the extra unit. It's about the land, the building size, and the rental income the property can generate.
Example comparison:
| Property | Purchase Price | 5% Down Payment | Closing Costs (3%) | Cash to Close |
|---|---|---|---|---|
| Duplex | $285,000 | $14,250 | $8,550 | $22,800 |
| Triplex | $375,000 | $18,750 | $11,250 | $30,000 |
The triplex requires about $7,200 more upfront. That's real money, but it's not an insurmountable gap for most buyers. The question is whether that extra cash generates a meaningful return.
Monthly Cash Flow Breakdown
This is where the triplex starts to pull ahead, but not by as much as you might expect.
With a duplex, you have one unit generating rent. With a triplex, you have two. Simple math says double the income, right? Not quite.
Your mortgage payment scales with purchase price. Insurance is higher on larger buildings. Property taxes increase. Maintenance costs go up because there's more building to maintain. Vacancy risk exists on more units.
Let me walk through a realistic comparison using numbers from a Midwest market.
Duplex House Hack:
Rental income from Unit B: $1,200/month
Your net housing cost: $1,126/month
Triplex House Hack:
Rental income from Units B and C: $1,150 + $1,150 = $2,300/month
Your net housing cost: $796/month
The triplex cuts your housing cost by another $330/month. Over a year, that's nearly $4,000 in savings. Over five years, it's almost $20,000.
The Break-Even Analysis
You invested $7,200 more upfront to get the triplex. You're saving $330/month more than you would with the duplex. That means your break-even point is:
> $7,200 / $330 = 21.8 months
In less than two years, you've recovered your additional investment through reduced housing costs. Everything after that is gravy.
I think this break-even period is acceptable for most investors. If you're planning to live in the property for at least two years (which you should, for tax purposes), the triplex math works out better.
A Worked Example: Same Neighborhood, Real Numbers
Let's get specific. I pulled these from actual listings in Kansas City (prices adjusted slightly for privacy).
Property A: Duplex on Troost
Property B: Triplex on Prospect
Running these through a house hack analysis:
Duplex (5% down, 6.75% rate):
Triplex (5% down, 6.75% rate):
The triplex saves $92/month more, but requires $6,800 more cash to close. Break-even: 74 months (over 6 years).
This is a much tighter comparison. The duplex in this example is actually priced well relative to rents. The triplex's per-unit rent is lower, which hurts its relative performance.
This is why you run the numbers on each specific deal. General rules about "triplexes are better" fall apart when you look at actual properties.
When the Duplex Wins
The duplex makes more sense when:
You're capital-constrained. If scraping together that extra $5,000-$10,000 means depleting your emergency fund or borrowing from retirement accounts, the duplex gets you in the game without overextending.
The triplex is overpriced. Some markets have triplex premiums that don't make mathematical sense. If triplexes trade at 50%+ premiums over duplexes, but only generate 40% more rent, the duplex is the better deal.
You want simplicity first. One tenant is genuinely easier to manage than two. If you've never been a landlord, starting with one rental unit lets you learn the basics without being overwhelmed. You can always buy a larger property next.
The specific duplex is a better deal. Real estate is hyperlocal. Sometimes a well-priced duplex in a great location beats an overpriced triplex in a mediocre one.
When the Triplex Wins
The triplex makes more sense when:
You can comfortably afford the higher down payment. If the extra capital doesn't stress your finances, the triplex's better cash flow usually wins over time.
You want to live for free (or close to it). Two rental units have a better chance of covering your entire mortgage than one. If eliminating your housing cost is the goal, the triplex gets you there faster.
You're comfortable with basic property management. If you've rented apartments before, understand lease basics, and aren't intimidated by tenant screening, the extra complexity isn't a big deal.
The price-to-rent ratio works. When triplex rents are genuinely higher relative to purchase price, the math tilts decisively in favor of the larger property.
The Fourplex Question
I know what you're thinking: if two rental units beat one, why not three?
Fourplexes (four units, you live in one, rent three) are the maximum size that still qualifies for residential owner-occupied financing. They can be fantastic house hack vehicles.
But they're also harder to find, more expensive, and the jump in management complexity from two tenants to three is noticeable. Fourplexes deserve their own analysis.
For a first house hack, I typically recommend duplexes or triplexes. Fourplexes make sense for your second or third deal, once you've proven you can handle multiple tenants.
What About Appreciation?
I've focused on cash flow because that's what pays your bills each month. But appreciation matters for wealth building.
Small multifamily properties (2-4 units) generally appreciate similarly to single-family homes in the same area. They're valued primarily on comparable sales, not income.
Larger properties (5+ units) are valued on income. A triplex in most markets sits firmly in the residential category, priced like homes rather than commercial buildings.
This means your appreciation will depend more on your neighborhood and market conditions than on whether you bought a duplex or triplex. Pick a good location with strong fundamentals, and appreciation should follow.
Mistakes I've Seen First-Time House Hackers Make
Underestimating vacancy. "I'll just find a tenant before I close." Maybe you will. Maybe you won't. Budget for one month of vacancy per year per unit. If you do better, great. If you don't, you're covered.
Ignoring the living space. You have to actually live in one of these units, probably for at least two years. If the owner's unit is a cramped 500 square feet with street noise and no parking, you'll be miserable. The best deal on paper isn't the best deal if you hate living there.
Comparing dissimilar properties. A renovated duplex in a B+ neighborhood versus a dated triplex in a C area isn't an apples-to-apples comparison. Location and condition matter as much as unit count.
Forgetting about exit strategy. What happens when you move out? Does the property cash flow as a pure rental? Can you refinance into an investment loan? Think two steps ahead.
Running Your Own Numbers
The examples above are illustrative, not prescriptive. Your market has different prices, rents, taxes, and insurance costs. The only way to know which property type works better for your situation is to run actual numbers on actual deals.
That's what the [house hack calculator](/tools/house-hack) is built for. Plug in real listing prices, real market rents, and your actual financing terms. Compare scenarios side by side. The math will tell you which path makes sense for your money.