House-Hacking: Buy a Multi-Unit, Let It Pay Your Mortgage
One of the smartest moves in all of real estate is also one of the most accessible: buy a two-, three-, or four-unit property, live in one unit, and rent the others. Your tenants help pay your mortgage, and because you live there, you can finance it with owner-occupied terms.
Why it is so powerful
- Low down payment. As an owner-occupant of a multi-unit property, you can access the same low-down-payment programs as a single-family buyer — FHA and more — rather than the larger down payment an investor needs.
- Rental income helps you qualify. The projected rent from the other units can be counted toward your income, boosting what you can afford.
- Your housing cost drops — sometimes to near zero — as tenants cover much of the payment.
- You become an investor while solving your own housing, building equity and experience at once.
What to go in knowing
You are now a landlord as well as a resident, which means tenants, maintenance and the responsibilities that come with them. For many, that trade — a little management for a dramatically lower cost of living and a foothold in investing — is one of the best financial decisions of their lives.
A two-to-four-unit owner-occupied purchase is the classic wealth-building entry point. Ask us how the projected rents factor into your approval — it often lets you buy more property, and build more equity, than you expected.