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.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.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
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