House hacking means buying a small multi-unit property (or a home with extra rooms or an ADU), living in one part, and renting out the rest so the tenants cover most or all of your mortgage. It's the most accessible way into real estate because you can use a low-down-payment owner-occupant loan instead of a 20–25% investor down payment.
Run the numbers free →| Loan | Typical down | Notes |
|---|---|---|
| FHA | 3.5% | 1–4 units; must live in one for ~1 year; mortgage insurance applies. |
| Conventional (owner-occ) | 5%+ | 1–4 units; PMI drops off at 20% equity. |
| VA | 0% | Eligible veterans/service members; 1–4 units; no PMI. |
All require you to actually occupy a unit — owner-occupant fraud is a serious matter. Confirm current terms with a lender.
You buy a $400,000 duplex with 3.5% down (~$14,000) via FHA. Total payment (mortgage + taxes + insurance + MI) is about $2,900/mo. You live in one unit and rent the other for $1,800/mo.
If a comparable apartment would cost you $1,800/mo, you're saving ~$700/mo and building equity. In a triplex or fourplex, two or three rents can push your housing cost toward zero — and the day you move out, every unit rents and the property cash-flows.