What Is House Hacking, and How Can It Benefit Me?
- By Jim Blackburn
- on
- First-Time Home Buyer, First-Time Investor, House Hacking, Multi-Family, Wealth Building
1. House Hacking Means Living in Your Investment
House hacking simply means buying a property and renting out part of it while you live in the other part.
This can look like:
- A duplex or triplex where you live in one unit and rent out the others
- A single-family home with a basement apartment or garage suite
- Renting out individual rooms in your home (ideal for younger or solo buyers)
The rent you collect can cover part—or even all—of your mortgage.
Ready to see the numbers? Calculate your FHA 2-4 Unit Home Purchase Cash Flow Appreciation now to see how rental income from a duplex, triplex, or fourplex can offset your mortgage with as little as 3.5% down.
2. You Could Live for Free (or Close to It)
Imagine this: Your mortgage is $2,000/month, but your downstairs tenant pays $1,500. That means:
You live in your home for just $500/month Or you live for free if the rent covers the full mortgage You’re also building equity and reaping the tax benefits of homeownership
Even if it doesn’t fully cover your payment, house hacking can drastically reduce your cost of living while giving you long-term financial leverage.
Want to understand the complete financial picture of house hacking? Calculate your Buy & Hold: Cashflow, Appreciation, Equity, Depreciation & Tax Savings now to see how rental income, equity growth, and tax benefits combine to build wealth over time.
3. It’s a Launchpad Into Real Estate Investing
House hacking is often the first step for new investors because:
- It qualifies for owner-occupied financing, which means lower rates and down payments
- You learn how to manage a property while still living on-site
- You can repeat the strategy after moving out, turning your first home into your first rental
It’s one of the smartest ways to live for less now—and build wealth for later.
Once you’re ready to move out and convert your house hack into a full rental, explore investor financing. Calculate your DSCR Investment Purchase Loan Payment now to see how debt service coverage ratio loans can help you buy your next investment property.
Thinking bigger? Calculate your BRRRR Method (Buy, Rehab, Rent, Refi Cash Out, Repeat) now to explore advanced real estate strategies that build on your house hacking foundation.
Ready to Start House Hacking? Let's See What's Possible
At Stairway Mortgage, we help first-time buyers think like investors—because smart leverage builds wealth.
📘 Download our homebuyer guides about house hacking strategies.
📊 Check Current Rates for multi-unit properties.
🧮 See the numbers with our FHA Multi-Unit Calculator.
🏠 Explore investment options on our Buy a House page.
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