House hacking
House hacking 101: how I started living rent-free
April 15, 2026 · 6 min read
House hacking is the simplest entry point to real estate investing. You buy a property, live in part of it, and rent out the rest. Done well, your tenants cover most or all of your mortgage and you live for free while building equity.
Why it works
Owner-occupied financing is dramatically cheaper than investor financing. You can buy a primary residence with as little as 3.5% down on an FHA loan or 5% down on a conventional loan, with rates 1 to 2 points lower than what an investor pays. That financing advantage alone can be worth tens of thousands of dollars.
What to buy
- Single-family with 3 to 5 bedrooms, rent the spares to roommates
- Duplex, triplex, or fourplex, live in one unit, rent the others
- House with a basement or ADU you can legally rent separately
The math you have to run
Before you buy, build a simple model: total monthly cost (PITI plus utilities you cover plus a real maintenance reserve) minus rent from the unrented portion. If that number is at or below what you would pay to rent a comparable unit, you have a deal.
Want help running the numbers on a specific property? Get in touch and I'll model it with you.
Want help applying this?
Run a deal by me.
Tell me about a property or strategy you're considering. I'll send back honest underwriting and next steps.