House hacking is the strategy of living in a property while renting out part of it to offset your housing costs. It's one of the lowest-risk ways to start building wealth through real estate.
What is House Hacking?
At its core, house hacking means your tenants pay some (or all) of your mortgage. You live for free—or even cash flow positive—while building equity.
House Hacking Strategies
1. Small Multifamily (2-4 Units)
Buy a duplex, triplex, or fourplex. Live in one unit, rent the others.
Pros:
Cons:
2. Rent by the Room
Buy a single-family home with extra bedrooms and rent them individually.
Pros:
Cons:
3. ADU or Basement Apartment
Add an accessory dwelling unit or convert basement to separate apartment.
Pros:
Cons:
The Numbers: How Much Can You Save?
Traditional Living:
House Hack (Duplex):
House Hack (Rent by Room):
Getting Started
House hacking can cut years off your path to financial independence. The key is running the numbers carefully before you buy.