Maxwell Sandquist

House hacking involves purchasing a multi-family property and occupying one of the units. The rent from the other unit(s) helps offset the mortgage payment. Traditional financing limits the property to a maximum of 4 units while being owner occupied. A property that has over 4 units requires commercial or private lending at 20% down even if you do occupy a unit. Depending on your location the rent rates may offset the mortgage completely, but that is becoming much more rare with all the post-covid appreciation/inflation, especially if you are occupying 1 of the units. In general a duplex will help offset the mortgage, a triplex might break even, and a 4 plex should break even. There are lots of other variables and factors. Generally for wealth building the owner lives in the oldest and most outdated unit while making updates and/or capital improvements. After the 1st unit is done the owner can move into other units as tenants leave to do update and add equity until all units have been updated. I'd love to discuss more strategies with you if you are interested as I have done this with my own 4 plex.