Live in one unit, rent out the others. Eliminate housing costs while building equity and starting your real estate portfolio. Calculate your potential savings and returns.
Jump straight to the calculator or learn the fundamentals below
Launch House Hacking CalculatorYour roadmap to living for free while building wealth
House hacking is a real estate investment strategy where you buy a multifamily property, live in one unit, and rent out the others. The rental income from other units covers most or all of your housing expenses, allowing you to live for free while building equity.
Purchase duplex, triplex, or 4-plex with owner-occupant financing
Make it your primary residence to qualify for low down payment loans
Collect rent from other units to offset your housing costs
Best for: Beginners, maximum privacy
Pros: Easier to manage, good rental coverage, more privacy
Cons: Higher vacancy risk, less income diversification
Typical Coverage: 60-80% of housing costs
Best for: Balanced risk and return
Pros: Better income diversification, often live for free
Cons: More management, harder to find
Typical Coverage: 80-100% of housing costs
Best for: Maximum income potential
Pros: Best income coverage, often get paid to live there
Cons: Most management intensive, expensive
Typical Coverage: 100%+ of housing costs
Best for: Single family feel with income
Pros: More privacy, easier resale, single tenant
Cons: Limited income, ADU may need permits
Typical Coverage: 30-60% of housing costs
Your actual monthly housing expense after rental income.
Annual equity build through mortgage paydown and appreciation.
Comprehensive return including savings and wealth building.
Calculate net housing costs, savings, and wealth building potential
See 5-year wealth building and cumulative savings over time
Test different rent prices, vacancy rates, and market scenarios
Start with FHA (3.5% down) or conventional (5% down) financing. Lenders count 75% of potential rental income toward qualification.
Look for properties where rental income from other units covers 70-100% of your total housing payment. Focus on good neighborhoods with strong rental demand.
Use our calculator to verify the property will reduce your housing costs. Factor in vacancy, maintenance, and management expenses.
Close on the property, move into your unit, and find quality tenants for the other units. Screen tenants carefully and set clear lease terms.
Research actual market rents thoroughly. Overestimating by even $100/month can make a deal unprofitable.
Budget for 5-10% vacancy and turnover expenses. No property stays rented 100% of the time.
Focus on areas with strong rental demand, good schools, and low crime. These factors affect both rent potential and appreciation.
Always verify income, check credit, and call references. Bad tenants can quickly turn a good deal into a nightmare.
Use our calculator to analyze your first house hacking opportunity
Start House Hacking AnalysisExplore other tools to complete your real estate investment analysis