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  • Writer's pictureChris Goff

House Hacking Real Estate: A Smart Strategy to Make Money

Are you looking for a savvy way to make your money work harder for you? House hacking, an ingenious real estate strategy, might be the answer.

What is House Hacking?

House hacking involves purchasing a multifamily property, living in one unit, and renting out the others. The rent from the other units can cover your mortgage, taxes, and insurance, allowing you to live virtually for free or even profit each month!

What are the Basic Steps to Begin House Hacking?

1. Understand the Market: Start by learning about the local real estate market. Look for neighborhoods with high rental demand and reasonable property prices.

2. Choose the Right Property: Consider duplexes, triplexes, or quadplexes. They're easier to finance and manage than larger properties.

3. Secure Financing: You can use FHA loans, which require lower down payments, to finance your house hack.

4. Find Tenants: Screen prospective tenants carefully. Reliable tenants are key to successful house hacking.

5. Manage Your Property: Whether you hire a property manager or do it yourself, good management will keep your tenants happy and your operations smooth.

What are the Advantages of House Hacking?

Financial Freedom: The rental income can cover your living expenses, freeing up your income for other investments.

Real Estate Experience: As a landlord, you'll gain valuable insight into real estate investing.

Tax Benefits: Rental properties come with tax deductions like mortgage interest, insurance, and maintenance costs.

House hacking isn't just a smart financial move; it's a lifestyle choice. If you're willing to share your space and take on the responsibilities of a landlord, it can be a game-changing move toward financial independence. Happy hacking!

Here is An Example of House Hacking

House Hacking REIPro

Imagine John, a young professional who wants to get into real estate investing but also needs a place to live. He decides to buy a duplex for $200,000 in a growing neighborhood.

John secures an FHA loan with a 3.5% down payment, which amounts to $7,000. His monthly mortgage payment, including insurance and taxes, is $1,200.

He moves into one unit and rents out the other unit for $1,300 per month. The rental income covers his entire mortgage plus an extra $100. Effectively, John is living for free, gaining equity in the property, and even making a small monthly profit.

After a year, John moves into another property and rents his previously occupied unit for another $1,300. Now, he's making $2,600 monthly from the duplex while his mortgage remains at $1,200, yielding a profit of $1,400 per month.

Through house hacking, John was able to live for free while also starting his journey as a real estate investor. This strategy has set him on the path toward financial independence.


In a world where financial independence is increasingly becoming a goal for many, house hacking provides an innovative approach to real estate investing. It not only offers the opportunity to live mortgage-free but also opens up an additional source of income that can be used to further your investment portfolio or fund other life goals.

Remember, successful house hacking requires careful planning, market knowledge, and property management skills. It may not be a completely passive form of income, but the potential rewards can significantly outweigh the effort.

Whether you're a young professional looking to make your first real estate investment, or you're someone seeking creative ways to supplement your income, house hacking can be a game-changer. It's a strategy that combines the best of homeownership and real estate investment. So, why not consider house hacking your way to a more financially secure future? After all, it's not just about making money; it's about making smart money moves.

Start searching for your next investment opportunity by clicking here.


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