📋 Table of Contents
House Hacking Guide
House hacking means living in one unit of a multi-unit property (like a duplex or triplex) while renting out the others — using rental income to offset or eliminate your own housing costs.
Why House Hacking Is Attractive
Owner-occupants can access more favorable financing (lower down payments, better rates) than pure investment property buyers, while still gaining real estate investment exposure and rental income.
Common House Hacking Structures
| Structure | How It Works |
|---|---|
| Duplex/triplex/fourplex | Live in one unit, rent the others |
| Single-family with rented rooms | Rent individual rooms to roommates |
| ADU (accessory dwelling unit) | Rent a separate unit on the same property |
Financing Advantages
FHA and conventional owner-occupant loans on 2-4 unit properties often require significantly lower down payments (as low as 3.5% with FHA) than investment property loans, making house hacking one of the more accessible real estate entry points.
Common Mistakes
Underestimating the reality of living close to tenants — house hacking means being your own on-site landlord, which requires comfort with that dynamic and clear boundaries.
Frequently Asked Questions
Yes — FHA loans on 2-4 unit owner-occupied properties can allow down payments as low as 3.5%, significantly lower than typical investment property financing.
No prior experience is required, though understanding local landlord-tenant laws and being prepared for the responsibilities of managing tenants (even as a live-in landlord) is important before starting.