House Hacking – How To Buy Rentals With Low Money Down

House Hacking – How To Buy Rentals With Low Money Down

Want to get started in real estate investing, but don’t have a lot of money? Then House Hacking is for you.

What is House Hacking? There are 2 ways to do it.


a. Buy a single family home/townhome/condo

b. Live in it for at least a year then purchase another

c. This opens up your first home to be a full time rental


a. Purchase a multiplex (duplex, triplex, fourplex)

b. Live in one unit and rent the other(s)

c. As with option 1 you can then purchase another after at least a year and repeat.

Why is this better than just buying a regular investment property? With this method you don’t need to be made of money. When you live in the home you can get a loan for as little as 3% down. This is compared to 20% when you buy it as a pure investment.

If you play it right then it’s possible to acquire a new property every year. If you start at 25 you could have 10 properties by 35. Like the sound of that?

As with anything there are downsides. In this case it can be very difficult to do with a family, so this strategy is not for everyone. With just a spouse it can be accomplished, but be realistic when thinking of attempting House Hacking with kids.

If you don’t want to move this can also be a great way to offset your housing expenses. If purchased correctly a multiplex can pay for itself with the other units being rented. This allows you to live in the other unit for cheap or even free. If you like the location and unit then there may be no need to move.

Like this idea? Reach out to us if you would like more information. Team Zen has worked with many clients to make this process happen. We’re here to help you get started investing on the right foot.

– Dan Mackin

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