.jpg)
How to Live in Your Investment Property While Earning Passive Income
If you're looking for a creative way to build wealth in real estate without stretching your budget, house hacking might be your perfect first step. This strategy allows you to live in your investment property while having tenants help pay your mortgage—sometimes even covering it completely.
Whether you’re a first-time homebuyer or a budding investor, house hacking can be a smart, low-risk entry point into real estate.
💡 What Is House Hacking?
House hacking is the process of purchasing a multi-unit property (like a duplex, triplex, or fourplex) or a single-family home with rentable space, living in one part, and renting out the rest.
Examples include:
Living in one unit of a duplex while renting the other.
Renting out bedrooms in a single-family home.
Converting a basement or garage into a rentable studio.
Using a guest house or separate entrance apartment for short- or long-term tenants.
The goal? Reduce or eliminate your housing expenses while gaining valuable landlord experience and building equity.
💰 Benefits of House Hacking
1. Lower Living Expenses
Tenants' rent can offset your mortgage, utilities, taxes, and insurance. In some cases, you can live completely mortgage-free.
2. Build Wealth Early
Instead of renting, you're building equity and taking advantage of appreciation and tax benefits.
3. Easy Financing Options
If you live in the property, you may qualify for owner-occupant loans with lower down payments and better interest rates, including FHA or VA loans.
4. Landlord Learning Curve
House hacking allows you to learn property management in a hands-on way without the pressure of managing a fully separate rental.
5. Jumpstart Your Portfolio
By using house hacking as your first investment, you can leverage your income and experience to scale into future real estate deals faster.
🛠 What to Consider Before You Start
Local Zoning & Laws: Check if local ordinances allow for multi-family use or ADU (Accessory Dwelling Unit) rentals.
Privacy & Lifestyle: Are you comfortable living near your tenants or sharing spaces?
Property Layout: Look for homes with separate entrances or natural divisions.
Tenant Screening: Treat this like a real business. Screen thoroughly and set clear boundaries and expectations.
Exit Strategy: Will you eventually rent out the entire property or sell it? Make sure it aligns with your long-term plans.
Start House Hacking With Confidence
At First Capitol Real Estate, we specialize in helping first-time buyers and investors find properties that work for both living and earning. Whether you're eyeing a charming duplex or a home with basement rental potential, we’ll help you evaluate your options, run the numbers, and make a smart, strategic investment.
📍Let your home work for you.
💼 Contact First Capitol Real Estate today to start your house hacking journey with expert guidance and local insight!
