House Hacking

Real Estate

House hacking is buying a multi-unit property (typically 2-4 units), living in one unit, and renting the others to cover the mortgage. Strategy works because FHA loans allow 3.5% down on properties up to 4 units occupied by the owner. A $500,000 fourplex with $17,500 down can produce a free or income-generating place to live while building equity. House hacking accelerates real estate investing — first property eliminates housing costs (typically 30%+ of income), freeing capital for next investment. After 12 months living there, you can move out and the property converts to pure rental. Strict 'owner-occupied' requirement enforced via documentation.