House hacking
Living in one part of a property and renting out the rest, whether that's a room, a basement, or another unit in a duplex. Lets buyers use owner-occupant financing on what's effectively an investment.
Your Room opens on showings and offers, with everything before the listing already ticked.
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See how it worksWhere this comes up: on the market
Part 1 of 4
Why a seller cares
A house hacker buys a duplex or a home with a rentable unit, lives in part and rents the rest, on an owner-occupant loan. They are the buyer who can pay a family's price for a small multi-family, and they are common.
Part 2 of 4
A simple example
A young couple offers on your duplex with a 5% down FHA loan. They will live in one side and rent the other for $1,100.
| The buyer | What they can pay |
|---|---|
| A house hacker on an owner-occupant loan | Often more than an investor, with less cash |
| An investor on a 25% down loan | Less, priced on the return |
| Either | Both want the leases and the rent history |
House hackers are owner-occupants buying an investment, and they bring an owner-occupant's price.
Part 3 of 4
What people get wrong
That a duplex only sells to investors. The best offers often come from somebody who wants to live in it.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines house hacking in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.