Quick Tip: House Hacking, How to Offset Mortgage Costs

Today’s quick tip: house hacking & how to offset mortgage costs with it. What is it? Here’s a 3 minute explainer!


Oregon Cash Flow Pro
Quick Tip
Hey folks, today’s quick tip: what is house
House hacking is essentially renting out unused
space to help pay for your mortgage. It’s
possible to do this, and cover almost the
entire cost, if not the whole cost of your
Each payment that helps to offset your mortgage
contributes to growth in your equity position.
It’s an excellent opportunity for young adults,
college students, newlyweds, and young families.
It’s a bit harder for established families
or people who have a lot of stuff, or who
really value their privacy more than the income.
This is typically done with loans that qualify
for FHA financing. That would be single family
homes, duplexes, triplexes, and four plexes.
Now, with an FHA loan, you get a low down
payment. Usually 0-10% down payment required.
The only hitch is, you have to live in the
place for 12 months.
So, what people end up doing, and this is
why it works good for young folks and people
just starting out with their families, is,
you get into a single family home, you get
into a duplex, or triplex, or fourplex, and
you live in it for 12 months and then you
do the same thing again with another one.
And then you just rent out the portion you
were living in.
So, you can end up building your real estate
portfolio once each year, utilizing that FHA
financing. Now, you can also do it with conventional
loans, but that requires a 20% down payment.
With single family homes, you can rent out
individual rooms, you can just get roommates.
You can rent out a garage. You can rent out
storage. You can have additional dwelling
units, or a mother-in-law unit. Those are
all good options when it comes to single family
homes and house hacking.
Now, with a duplex, triplex, and fourplex,
you can just live in one of those units and
rent out any of the other units and this is
ok when it comes to FHA financing. Anything
under a fourplex, is considered a residential
unit. Anything over that, so five or more
units, you’re going to need to go with commercial
financing and those usually require 30% downpayment.
So, when we talk about house hacking, or anytime
you hear somebody else talk about house hacking,
they’re typically referring to either a single
family home, a duplex, a triplex, or a fourplex.
Hopefully that answers your question about
what is house hacking and maybe you’ll be
able to put it to use and grow your real estate
If you have any questions or comments, leave
them in the section below, I’m happy to answer.
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today. It’s our hope to help you take control
of your finances, maximize your cash flow,
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