House Hacking: Make More Money With Less Down and Live For Free

House hacking is when an owner lives in their property and rents out other parts of the property. Ultimately, the tenants are the ones paying the monthly mortgage payment while the owner lives rent-free. 

For example, a person can buy multi-family property (e.g., triplex), live in one of the units, and rent out the other units. 

Another example is a person who owns a single-family home, lives in one of the rooms, and rents out the other rooms. 

Looking for your first investment property but unsure of where to begin? House hacking provides multiple benefits, especially to rookie investors. 

Live Rent-Free

A mortgage payment is composed of the principal amount, interest payment, and potentially mortgage insurance. However, the tenants are the ones paying back the debt service. 

Financing

Lenders offer lower interest rates to people who will occupy their property compared to investors who do not. 

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