House Hacking
House hacking is buying a property, living in part of it, and renting out the rest so tenant income covers some or all of the mortgage. It lets first-time investors buy with low owner-occupant down payments.
Classic forms: buy a duplex/triplex/fourplex, live in one unit and rent the others; or buy a single-family house and rent spare bedrooms or a garage apartment. Because you occupy the property, you can use owner-occupant financing (FHA from 3.5% down, conventional from 3–5%) instead of the 20–25% investment-property down payment.
Most loans require living there at least a year; after that, many house hackers move out, keep it as a pure rental, and repeat — building a portfolio one low-down-payment property at a time.
Worked example
Buy a Fort Worth duplex for $350,000 with an FHA loan (3.5% down ≈ $12,250). Total payment: $2,700/month. The other unit rents for $1,500, cutting effective housing cost to $1,200 — less than renting — while building equity in a $350,000 asset.
Put it to work
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