House hacking

House hacking

What is House Hacking?

When you buy a new house, you might not have a need to use every single room. If this is the case, it might make sense to house hack.

House hacking refers to landlords renting out a portion of the purchased property while also living on the property. Whether the landlord rents out the property by room or rents out separate units of a multifamily/duplex, it's all considered house hacking.

Tenants will be responsible for paying rent to the landlord and the landlord will still be responsible for maintaining a standard of habitability and performing fixes as needed.

What are some of the benefits?

House hacking may be a great place to start your property investing journey:

  • FHA loans. You can often use FHA loans and put only 3.5% of the purchase price for the down payment. Since the property is still your primary residence, you may be able to qualify.
  • Primary mortgage costs covered. Since your tenants are paying rent, you might be able to fully cover your mortgage and any other payment obligations. This means you can effectively live in the house for free.

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