10/07/2026
House hacking is one of the most underrated first-time buyer moves, especially if you feel stuck renting.
Here is the breakdown:
👉You buy a home, live in part of it, and rent out the rest. The rent helps cover your mortgage while you build equity. How much it covers depends on the property and the rent, but even partly covering your payment changes the math on buying.
✨️4 Ways To Do This
1. Buy a duplex, triplex, or fourplex. Live in one unit, rent the others.
2. Buy a single-family home and rent out the extra bedrooms.
3. Buy a home with a basement apartment or an ADU (a separate unit on the property) and rent that out.
4. Add an ADU later. (Subject to HOA and city rules)
The angle not many people play 😌
Because you live there, you can use owner-occupied loans, not investor loans:
- FHA loans allow as little as 3.5% down on 1 to 4 unit homes if you live in one unit. Plan to live there at least a year.
- Conventional loans through Fannie Mae allow as little as 5% down on owner-occupied 2 to 4 unit homes.
- Lenders can often count part of the expected rent from the other units when you qualify.
Noodle in this before you jump in. 🧐
Check on the numbers with a lender first, including taxes, insurance, and repairs, not just the mortgage.
- Be honest with yourself about being a landlord. Shared walls and maintenance calls come with the deal.
- Check the rules.
- Keep a cushion for vacancies.
Done right, your first home can also be your first investment. 🤑
Comment HACK and I'll send you my list of Colorado first-time buyer programs. Or send me a message if you want to know whether house hacking makes sense for you.
***general education, not lending or legal advice***
