Real estate strategy of purchasing multi-unit property, living in one unit while renting others to cover mortgage—effectively living for free or profit. Popularized by BiggerPockets podcast and Brandon Turner’s book “The Book on House Hacking” (2018).
Common Strategies
- Duplex/Triplex/Fourplex: Buy with 3.5% FHA loan (owner-occupied), rent other units
- House with ADU: Rent backyard unit or basement apartment
- Rent-by-room: Rent bedrooms to roommates in single-family home
- Live-in flip: Buy fixer-upper, renovate while living in it, sell/refi
Why It Works
- Owner-occupied loans: 3.5-5% down vs. 20-25% for investment property
- Lower interest rates: 5-6% vs. 7-8% investor rates (2018-2022 range)
- Tax benefits: Primary residence exclusions + rental deductions
- Forced savings: Tenants pay mortgage principal paydown
FIRE Community Adoption
Became core FIRE strategy 2016-2020. BiggerPockets member “Coach Carson” documented living free via house hack, then moving to second property and repeating. By third property, rental income from first two covered new mortgage—living free plus cash flow.
Pandemic Era
Strategy struggled 2020-2023 with eviction moratoriums and remote work causing young professionals to leave shared housing for solo apartments.
Sources:
- BiggerPockets forums & podcast
- “The Book on House Hacking” (Brandon Turner, 2018)
- r/RealEstate case studies