Want a way to cover your mortgage? Use my free House Hacking Calculator below to see how much of your housing costs could be covered by rent.
House hacking is one of the fastest ways to build wealth in real estate—without draining your bank account. And whether you’re renting out bedrooms, an ADU, or living in a duplex, this tool will show you if house hacking makes sense for you.
House hacking calculator
What is house hacking?
House hacking is when you live in part of a property and rent out the rest to offset your mortgage and expenses.
For example, you might…
- Rent out bedrooms in your single-family home to roommates
- Buy a duplex, live in one unit, and rent the other
- Add an ADU (Accessory Dwelling Unit) or basement suite and rent it
- Use Airbnb or short-term rentals to maximize income
The goal is to reduce or eliminate your biggest expense (housing) while building long-term wealth.
I personally used this to build my own real estate investing portfolio while living rent-free in California.
You see, before I became a real estate investor, I was a pharmacist and worked a demanding 9-5 job that left me dreading Monday mornings. I wanted to break free, but I also lived in one of the most expensive real estate markets in the country.
House hacking allowed me to cover my mortgage with rental income. This in turn meant I could use more of my income on investing in other properties and scaling faster than I otherwise would’ve.
I ultimately used my rental property income to retire from my job at age 30.
I talk more about my house hacking journey here:
And that leads us to the calculator. How do you use it to calculate your house hacking revenue and profit? Let’s take a look!
How this calculator works
Here’s what you’ll enter:
- Property details: purchase price, loan amount, interest rate, loan term
- Rental income: how much you’ll earn from tenants (per room/unit)
- Expenses: property taxes, insurance, repairs, management fees, utilities
And this is what you’ll see:
- The percentage of your mortgage covered by rent
- Whether you’ll live for free or even cash flow
- Your net monthly housing cost compared to your current rent
- The long-term impact on your net worth
Try it out to see how much you could make with a house hack.
But the next question is: How do you make house hacking work? Read on!
The best house hacking strategies
Your house hacking blueprint will depend on what type of property you want to house hack.
The main ways to do it are:
Single-family home hacks
- Rent by the room: Long-term roommates paying steady rent.
- Airbnb: Short-term rentals (can be unstable and require more work).
Multi-family hacks
- Duplex, triplex, fourplex: Live in one unit, rent the others.
If you don’t currently own your own property, the first step is to invest in one. So let’s start with your funding options:
- Finance your property: With FHA loans, your down payment is as low as 3.5%. Conventional loans typically require 15-20% down.
- Find the right property: The next step is to find the right property. Some of the most important factors are location and property type as those determine your rental income, cash flow, and ROI. Read more in my guide on finding your first rental property.
- Find the right tenants: Finally, define what your ideal tenants look like and where to find them. My personal strategy is to rent to students and healthcare workers, a group of people who need flexible and affordable accommodation.
For more, take a look at this quick video where I share the exact steps to finding your first property:
Pros and cons of house hacking
House hacking comes with both benefits and challenges. Be aware of both before investing:
Pros
- Slash or eliminate housing costs
- Build wealth while living in your property
- Get access to low down payment loans (FHA, VA, owner-occupied loans)
- Learn the landlord game with less risk
Cons
- Less privacy (especially if renting bedrooms)
- Landlord responsibilities (repairs, finding tenants)
- Risk of vacancy or unexpected expenses
When I started out as a landlord, the pros far outweighed the cons – you’ll need to decide what makes sense for you.
FAQs about house hacking
Is house hacking legal?
Yes, house hacking is legal in most places, but you must follow local zoning, HOA rules, lease laws, and your loan’s occupancy rules. Check short-term rental restrictions if you plan Airbnb.
How much can you save house hacking?
Many owner-occupants cut housing costs by 50–100% or even live for free (like I did). Use the calculator: savings ≈ (rent from other unit(s) + roommate rent) − (PITI + utilities + maintenance + vacancy).
Do I need to live in the property?
Yes, with owner-occupied loans (FHA/VA/conventional loans) you typically must move in within 60 days and live there for approximately 12 months. After that, many lenders allow converting to a rental; ask your lender first.
What’s the minimum down payment for house hacking?
As low as 3.5% with FHA (1–4 units), 0% with VA (1–4 units, if eligible), and 3% with some conventional programs for specific homes. Conventional down payments are often 15%-20%.
What’s the biggest mistake new house hackers make?
Underestimating expenses and vacancy. Use conservative inputs (maintenance/capex/vacancy 5–10% each), verify rents, and stress-test at a higher interest rate.
Want to get started?
The house hacking calculator shows you if house hacking makes sense for you.
House hacking was how I got started and it’s how countless newbie investors buy their first property with confidence. For example, my client Andy lives rent-free in his home while generating $750 in monthly cash flow:
Want to get similar results and find your first property in the simplest and fastest way possible? My real estate investing coaching program is a proven program that has helped 60+ beginners get started.
