House Hacking: Make More Money With Less 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.

Live Rent-Free

The first big benefit of house hacking is living 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.

Benefits of House Hacking


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

Benefits of House Hacking

Low Down Payment

Owner-occupied properties don’t require as much of a down payment compared to non-owner occupied borrowers.

Benefits of House Hacking

Passive Income

Aside from living rent-free, successful house hacking can generate monthly cash flow, known as the net operating income.

Benefits of House Hacking

Step 1: Become Creditworthy

The most powerful thing in real estate is leveraging other people’s money. Therefore, for a lender to approve you for real estate financing, you need to be as creditworthy as much as you can.

How To Get Started In House Hacking?

Step 2: Build a Relationship With a Local Bank

Communicate with your banker what you’re trying to accomplish with house hacking. A creative banker can develop loan suggestions to help you reach your goals, such as an FHA, 203k loan, or HomeStyle Renovation loan.

How To Get Started In House Hacking?

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