RealInvestorX
Owner-occupant strategy
House hacking: what you really pay to live there.
Buy a small multifamily property, live in one unit, and rent the rest. The number that matters is your net housing cost after the other units' rent, compared with what you pay today.
The screening formula
Net housing cost = loan payment + taxes + insurance + repairs − rent from the other unitsCount rent only from the units you will not live in, and reduce it for vacancy. Owner-occupant loans can allow a smaller down payment than an investment loan, which raises the payment the rent has to cover.
Example: On a $420,000 duplex with 3.5% down at 7.28%, the loan payment, taxes, insurance, and repairs come to about $3,740 a month. If the other unit rents for $1,900, less 5% vacancy, your net cost is about $1,935, a little under a $2,000 rent today.
Inputs worth checking
- Your lender's occupancy rules and how long you must live there
- Mortgage insurance on a low down payment loan
- Rent for the other units from current local listings
- What happens to your budget when a unit sits empty
House hacking calculator
Default rate is Freddie Mac's 30-year fixed average for the week of October 1, 2026 (PMMS); investment-property loans usually price higher. Every other default is a placeholder to replace with your deal.
Loan rules to confirm before you count on them
FHA-insured loans can finance one- to four-unit properties with as little as 3.5% down when the borrower lives in one of the units, and three- and four-unit properties face an extra rental income test. Conventional programs have their own owner-occupant terms. Read the current rules in HUD Handbook 4000.1 and confirm them with a lender. The calculator does not include mortgage insurance, so add it to insurance if your loan requires it.
When you move out, the property becomes a rental: run it through the small multifamily calculator at full market rent for every unit. A free account lets you save both scenarios.