Why House Hacking Works
Owner-occupant financing (3–5% down) combined with rental income from other units produces the lowest-cost entry into real estate investing. Most investors who reach 10+ properties started with a house hack.
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Property Types
Duplexes through quadplexes qualify for residential financing. Single-family homes with legal ADUs or finished basements work too. Avoid illegal conversions — they don't appraise and create liability.
The 12-Month Rule
Owner-occupant loans require 12 months of personal occupancy. After that, you can repeat the strategy on a new property, converting the previous one to a pure rental.