Question 1

What property types work best for house hacking?

Accepted Answer

Duplexes, triplexes, and fourplexes (2-4 units) are ideal — they qualify for owner-occupied financing (FHA, conventional) with low down payments. Single-family homes with ADUs (accessory dwelling units) or finished basements can also work. Properties with more units maximize income but require more active management.

Question 2

Can I use an FHA loan to house hack?

Accepted Answer

Yes — FHA loans are one of the most powerful house hacking tools. You can buy a 2-4 unit property with as little as 3.5% down if you plan to live in one unit. The FHA considers rental income from other units when qualifying your loan, making it easier to afford a larger property. You must occupy the property for at least 12 months.

Question 3

How much should I budget for maintenance?

Accepted Answer

The 10% rule is a starting point — budget 10% of gross rental income for maintenance and repairs. More conservative investors use 15% for older properties or those with significant systems (HVAC, roof, plumbing). Also maintain a separate vacancy reserve (5-8%) for turnover periods and difficult-to-fill months.

Question 4

What are the downsides of house hacking?

Accepted Answer

The main trade-offs: living near tenants limits privacy and creates a semi-professional relationship dynamic. You're responsible for maintenance requests at all hours. You may need to navigate landlord-tenant laws for the first time. Additionally, owner-occupancy requirements (typically 12 months) limit how quickly you can scale to the next property.

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