Landlording & Rental Properties

3 House Hacks in 3 Years & Now I’m Financially Free—Here’s Exactly How I Did It

Expertise: Personal Finance, Personal Development, Real Estate Investing Basics, Landlording & Rental Properties
59 Articles Written
Man sit on the Bench looking out a sunset over grassy field

It’s the most wonderful time of the year! And no, I’m not talking about the holidays. I am talking about the time where I get to write about my most recent house hacking deal.

I apologize, this blog post is a few months overdue, but I wanted to wait for the final rehab numbers to come in before sharing.

In this article, I am going to get into exactly how I found and funded my last deal, dive deep into the numbers, and show how it has allowed me to hit financial independence in under three years. Let’s jump in!

Finding & Funding My Third House Hack

I found house hack No. 3 just like I found No. 1 and No. 2—on the MLS. Why do I use the MLS? Because it is the easiest way.

Scanning the MLS

When house hacking, it doesn't matter that you get the lowest price for a deal. It matters that you get into a deal as quickly as possible so you can start saving on rent, cash flowing, and building equity. Plus, once you're in, you can start that one-year countdown to picking up the next one.

With the house hacking strategy I was planning to deploy, almost all of the properties within my search criteria would have worked. So, the golden nugget here is: what was my strategy exactly?

Related: Life Hacking in Pursuit of Financial Freedom: How I Add $1,500+/Mo to My Income

My plan was to find a single family residence that I could do a 5 percent down conventional loan on. I also wanted my own bedroom; I wanted to occupy one room while renting out the other four or five.

Also, I LOVE flexibility. If there was a way for me to convert some or all of this property into a short-term rental, even better!

I knew I could get much more in rent by renting by the room, and I certainly did not mind living with roommates. I’ve done it my entire life. The best-case scenario, though, would be to live with two roommates and have a short-term rental in the basement. Less roommates and more profitable? Win-win!

person holding house key with living room in background

Setting My Search Criteria

With that being said, I am an agent, so I set up my criteria to be a 1,900-plus-square-foot house with three-plus bedrooms and two-plus bathrooms. I know, I just said I was looking for a five-bedroom place—so why would I set my search criteria for three?

There is a high probability that a house with more than 2,000 square feet either has non-conforming bedrooms OR an unfinished basement, where bedrooms can be added. By either adding or conforming bedrooms, you will add significant value to your house and simultaneously gain the ability to increase total rent for the property.

With that search, I saw many properties pop up that I liked. I made high offers on two of them, and one was accepted.

The Deal & Numbers

On Aug. 7, 2019, I closed on my third house hack: a single family home in unincorporated Adams County. Yes, I don’t actually live in a city. I live in no-man’s land between Denver and Westminster, Colo. This is great, because there are less rules, little taxes, and I am still not far from the city or the mountains.

The house itself has six bedrooms and three bathrooms. The upstairs has three beds and two baths, while the basement can be a whole other unit—complete with three bedrooms, one bath, and its own separate laundry room, kitchen, and entrance through the garage.

Related: The 7 Drawbacks of House Hacking (& How to Overcome Them!)

Can you see where I am going with this?

My plan was to section off the top from the bottom by walling off a doorway that connects the upstairs to the downstairs and updating the entire basement to turn it into an AirBnb—all while renting the top out by the room. If you have already read the The House Hacking Strategy, then you will know that this is a hybrid strategy of “rent by the room” coupled with “luxury house hacking.”

The purchase price of the property was $380,000. I used a 5 percent down conventional loan. After closing costs, my total down payment was about $25,000.

Between the downstairs remodel, some electrical updating, and furnishing the place I was all-in for $30,000 in rehab expenses. So, my total initial expenses on the deal was $55,000.

  • Purchase Price: $380,000
  • Down Payment: $25,000
  • Rehab: $30,000
  • Total Initial Expenses: $55,000

Upstairs, I rented out the master bedroom for $900 and the other bedroom for $650. I am generating $1,550 on the top unit.

As we speak, the downstairs has just started renting out, so there is not sufficient data yet. However, I have a friend who has an Airbnb in her basement. It is a studio with a kitchenette in a similar location. She makes about $2,000 per month on this.

Even though mine is a three-bed, one-bath with a full kitchen and laundry, I will conservatively assume that I will make $2,000 per month on the Airbnb (same as her).

Here are what my numbers look like:

  • Mortgage: $2,100
  • Rental Income: $1,550
  • Airbnb Income: $2,000
  • TOTAL INCOME: $3,550
  • Less Reserves: $400
  • TOTAL CASH FLOW: $1,050
  • Plus Rent Savings: $650
  • TOTAL CASH FLOW & RENT SAVINGS = $1,700 

Once the Airbnb is finished and running, my total cash flow and rent savings on this property will total $1,700 A MONTH! That is $20,400 per year just in cash flow and rent savings.

Silhouette of male on the mountain. Leadership Concept

According to the amortization schedule that my lender provided, I will have paid off about $8,000 in principal. I have not gotten the appraisal back yet on the property, but I suspect at least a $30,000 bump in property value based on the basement remodel.

Given the three wealth generators we talked about throughout the book, I expect my year-one return on this property to be:

$20,400 Cash Flow + 8,000 Loan Paydown + 30,000 Appreciation = $58,400 Net Worth Gain

Divide my total year one return by the initial money I put in, and you will see that my cash flow return on investment (CFROI) is 106 percent.

$58,400/$55,000 = 106% CFROI

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There you have it! Another deal where I will receive my full investment back in one year or less. Do you see how this is so repeatable?

My House Hack Portfolio

I am now in my third year house hacking and managing a portfolio of rent-by-the-room tenants has become more and more daunting. I do not want to be a property manager, so I have decided to hire one for my first two properties (the ones I do not live in). And yes, she does do rent by the room management.

After including property management for all three of my house hacks, here is what my portfolio looks like:

  • 2017 House Hack: $475 of monthly cash flow
  • 2018 House Hack: $350 of monthly cash flow
  • 2019 House Hack: $700 of monthly cash flow
  • TOTAL CASH FLOW MONTHLY: $1,525

Not too bad for three houses that have been hacked over the course of a little over two years!

And this assumes property management for all of the properties (even the one I live in), so it is 99 percent passive. I still need to “manage” the property manager, but over time, my work will become less and less. Now I am able to focus on bigger and better things, such as purchasing BRRRRs out of state, growing my real estate agent business, and enjoying life!

Financial Independence Has Been My Top Priority

As many of you likely know, I do not spend a lot of money. This is the main driver of how I hit “financial independence” in less than three years.

In a few short sentences, the formula is:

  1. Make the most money you can.
  2. Spend the least amount of money possible.
  3. Invest the difference into cash-flowing assets.

It is very simple. If I can do it, so can you!

What questions can I answer for you about house hacking?

Ask me in the comment section below.

Craig Curelop, aka thefiguy, is the author of The House Hacking Strategy and a driven pursuer of financial independence. Starting with a net worth of negative $30K in 2016, he has aggressively saved and invested to become financially independent in 2019. From sleeping on the couch and renting out his car, he was able to invest in three house hacks in Denver, a flip in Jacksonville, and traditional rental properties in North Carolina. He plans to continue to invest in both Denver and Jacksonville for years to come. Craig's story has caught the attention of several media outlets, including The Denver Post, BBC, Money Magazine, and many other real estate/personal finance podcasts. He hopes to inspire the masses to grab hold of their finances and achieve financial independence. Follow his story on Instagram @thefiguy!
    Tim Gilman Investor from Providence, Rhode Island
    Replied about 1 year ago
    Absolutely inspiring article thank you!
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Glad you liked it Tim!
    Chad Maxwell Real Estate Agent from Plano, TX
    Replied about 1 year ago
    Thanks for sharing Craig. I just purchased your audio book on House Hacking. Something that a large part of the country will struggle with including myself is the lack of basement. This obviously creates a major opportunity for folks like yourself, however, I think it is much more challenging for those who live in areas where there is no basement. What would you say to that? Also, I am curious about how you structure your house with bedrooms typically outnumbering bathrooms? I can't imagine tenants sharing a bathroom. In the area I live, it seems that I would need a minimum of 4 bathrooms to break even every month on a home I got a steal on.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Chad, Are there houses with two levels in your area? Typically ours second level is a basement, but perhaps you have an upstairs? I'm not sure what the houses in TX are like, but if you look hard enough and get creative, I am sure you'll be able to find something that works. As for the 4 bathrooms and everyone needing their own bathroom, that seems much more like a personal preference than a location-specific thing.
    Pat Tobin Investor from Salt Lake City
    Replied about 1 year ago
    Hey Chad, think about it this way for sharing bathrooms. It seems like it would be an "inconvenience" to share a bathroom with another tenant but put yourself in their shoes and consider what they find to be valuable. I think the "I'll deal with it" motivator for tenants is the rent price per month. In SLC, rent price for a single bedroom apartment at a complex can be anywhere from $1,100 to $1,300 without utilities and fees! I just bought my first house hack back in August with the same concern as you. My tenants that are sharing bathrooms are paying only $750 a month FLAT. Tenants who are smart/logical will deal with sharing bathrooms and it seems to be working out quite well! If you screen your tenants well and they know up front they will share a bathroom, the tenant will deal with any issues that arise. If a room has a private bath, you bet your rear end I'm going to monetize that. I'm charging $850 a month for my two rooms with private full baths. Of course you offer a discounted rent if they have to share. At the end of the day, they are willing to SHARE the house with other tenants and save a TON of money.
    Cecelia Mastin
    Replied about 1 year ago
    Hi Craig, thank you for the great article. I notice you utilized a 5% down conventional loan. Is this a way to avoid permanent PMI? Or why did you choose this over a 3.5% FHA? Also, is rent by room prop management common or did it take some digging to find a prop management company that would provide this?
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Cecelia, So I do the 5% down conventional because I already used my FHA on the duplex. On single family homes, I recommend you use the 5% down conventional and keep your FHA for when you want to house hack a 2-4 unit. It is true that you don't need to refinance a conventional which is always nice!
    Daniel Gengaro from Bloomsbury, NJ
    Replied about 1 year ago
    So happy I came across this Craig especially after recently finishing your book. Great article and I will be adding this to my house hack search criteria.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Awesome Daniel! Glad it could help!
    Jeff White Rental Property Investor from Denver, CO
    Replied about 1 year ago
    Great stuff Craig! This is achievable for any W2 earner that is focused and frugal. You simplify something that people over-analyze like finding the right deal for a house hack because it isn't that hard. Knowing your duplex story and how you found your niche after with buying large single family houses with 5% down conventional loans now, would you have started with rent-by-the-room strategy in the beginning?
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Thanks Jeff! Definitely achievable and repeatable for any W2 earner. That's a great question! I actually probably would have preferred doing the single family rent by the room strategy. Though looking back, I'm glad I did purchase that duplex. It's appreciated like crazy!
    Teylo Thornton
    Replied about 1 year ago
    Doing something similar but I think your article is going to help me perfect my strategy so thank you!
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Awesome Teylo! Glad it could help!
    Zach Grim
    Replied about 1 year ago
    Have read the book twice and have a google document and sheet in the process of being created. Ready to take control of my life and live the way the I want!!!
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Heck yeah Zach! So glad it's helpful. Get it done!!!
    Adam M Drozdowski from Chicago, IL
    Replied about 1 year ago
    Hello Craig! I've actually finished reading your book a few weeks ago and absolutely love it. It is by far my favorite real estate book I have read. I have a question for you, you mentioned you use a property manager to manage your tenants, how do you go about finding a property manager that is willing and able to manage tenants that rent by room in your 2017 and 2018 house hacks? Thank you for the great article!
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Thanks Adam! So glad you liked the book. I always hate to ask, but if you have time to leave an Amazon review I'd greatly appreciate that! I love reading every one. To answer your question, I called and called and called until no avail. Then someone asked me how they could help me out and I told them to find me a property manager that does rent by the room. He did just that and I got my property manager.
    Perry Mead from Marietta, Georgia
    Replied about 1 year ago
    Hello enjoyed the article. One question, I did not see your calculations for taxes and insurance? Did you leave those numbers off or are they factored in somewhere. Those two numbers will be close to $1,000.00 per month. Your net would be around $700.00 per month which is still pretty good. Also how much would your monthly repair/maintenance costs be for a house that size? Just curious, would like to see all expenses then final net profit numbers. Thanks for publishing the article. P
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Perry, Taxes and insurance are included in my monthly mortgage payment. That consists of PITI (principal, interest, taxes, and insurance). All of repair/maintenance are factored into the "reserves" number. I like to have as few numbers as possible. Way easier to calculate and think about. People over complicate this way too much. It's just a few numbers you need to worry about.
    Matt Garneau Rental Property Investor from Connecticut
    Replied about 1 year ago
    Great article Craig. Do you pay for all of the utilities or do you divide up the utilities somehow? What about other maintenance/services such as landscaping? Is that taken into account in the $400 reserve? What type of permitting and building code considerations did you have to take into account when building an entire second unit with a kitchen? Thanks!
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Matt, Thank you! I split the utilities amongst the tenants. All of the maintenance and services are factored into that "reserves" number. The place actulaly came with the kitchen so there weren't any permits needed! I just updated it all.
    Ingrid Femenias
    Replied about 1 year ago
    Thank you for the article! Question: how much did it cost to finish off the basement? Was that amount excluded from the profit? Also did you add a separate entrance to the basement or do they enter the upstairs entrance?
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Thanks Ingrid! Glad you liked it. Yes - that was the included in the renovation cost. Total basement rehab was about $20k. I wouldn't really call it "profit" since I haven't sold it. Yes - I walled off the upstairs from the downstairs so now there is a separate entrance through the garage.
    Karim Kazemi Bidokhti from Montclair, NJ
    Replied about 1 year ago
    Hi Craig, Can you please share how you raise the initial investment for each deal?, is it all coming from your own money or you have other investors?
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Karim, This is all my own money. I saved up about $20k to $30k for my first deal. Then being able to live for free I am am able to save significantly more per month. Over the course of the year, I was able to save another $20k to $30k for the next deal one year later. Rinse and repeat!
    Barry Cohen Inspector from Freeport, NY
    Replied about 1 year ago
    Hi Craig, Congrats this is great. Your financially free on $1525 a month or am I missing something else? Thanks for sharing.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Barry, Yes and that is extremely conservative factoring in property management and everything. I am easily able to live off $1,500 per month as I am single without a family to take care of. I have not achieved my end goal yet... but I no longer need my work paycheck and can take risks that the normal W2 wage earner could not.
    David Wright
    Replied about 1 year ago
    Sounds like some good investing, though I’m guessing there are very few people who would consider $1500 per month financial freedom.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey David, Please see my response above to Barry.
    Erik Jenson Rental Property Investor from Denver
    Replied about 1 year ago
    Awesome post Craig! Love the creativity with the combination of strategies.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Thanks Erik! Creative.... let's hope it is sustainable though!
    Constance Kawa-Small Rental Property Investor from Pittsburgh|Detroit
    Replied about 1 year ago
    Congrats on your house hacking number 3! Quick numbers question: What’s your calculation for the reserves amount to set aside?
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Constance, It is a bit arbitrary to be honest. But what makes me comfortable is sticking starting at a base of $300. Then adding or subtracting from that based on the size, age, and location of the property.
    Brandon Rush Investor from New Britain, CT
    Replied about 1 year ago
    Thank you Craig. These detailed write ups are very beneficial. Question, with your previous house hacks, do you continue to rent them by the room or do you rent the entire house to one tenant? Is it common for landlords to rent by the room on homes they no longer live in(previously house hacked)? Thank You.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Brandon, Great question! Yes I am continuing to rent them out room by room.
    Robert Gregory
    Replied about 1 year ago
    good ideas - wondering about the cash flow rate of return. the 8k principal reduction and 30k increase in value are not cash flows. great for your equity position but "you can't eat your equity". cash on cash return would be 20,400/55,000 - right?
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    That's right! That's the "Cash on cash" return. When you factor in everything else though, your "net worth" return is much higher. So depends on what you are looking for.
    Sabrina Sanchez Real Estate Agent from MASSACHUSETTS
    Replied about 1 year ago
    Thanks for sharing Craig. It provided me with a different outlook on single families!
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Great! Thanks Sabrina. Glad it could help!
    Bryce Bender Rental Property Investor from Tremonton, UT
    Replied about 1 year ago
    Cool article. So your 3rd property cash flow went from $1700 to $700 when accounting for management? Is room by room management really that much, and if so, why not just rent the entire home (or at least the upstairs unit) with cheaper management? Great work, and inspiring read.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Bryce, That is a good catch! It actually cash flows me $1,700 with me NOT living there and $700 with me living there. So I actually should adjust this. My true cash flow if I count me not living there will be just over $2,000 per month.
    Jose Lopez Rental Property Investor from Los Angeles, CA
    Replied about 1 year ago
    My brother, who is in the Navy and stationed in Jacksonville for two years, and I want two purchase a home there. I'm out in California where he is also originally from. He currently lives about 20 minutes south of the Jacksonville Airport. What areas do you recommend on that area? I am looking to do exactly what you are doing. My brother pays about 800 a month for a room in a three bedroom house. I know the houses there are in the 200s. He said he's willing to move into a home if I bought one. Plus he's in the Navy which gives me security.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Jose, I am not an expert in the Jacksonville market so I don't think I am your guy to answer this question. I'd recommend talking to some agents and property managers in Jacksonville.
    Grant Waugh from Atlanta, Georgia
    Replied about 1 year ago
    Love this post! I house-hacked my first purchase but wanted to wait 2 years to move to avoid capital gains tax if I decide to sell during the next 3 years and to convince the banks that I’m not going to do this every year. Did you ever run into any problems with the banks asking you why you are moving every year? I’ve heard that can be a problem when getting financing.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Grant, No, I have not. And that is because my lender knows exactly what I am doing. Your lender is part of your team so I recommend finding a good one, let them know what you're doing, and that way there won't be any questions surrounding this.
    Delisha NA
    Replied about 1 year ago
    Thanks for this article Craig! I'm looking forward to reading your book to learn more about house hacking.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Thank you Delisha!
    Mason Jeffries from Nashville, TN
    Replied about 1 year ago
    Very inspiring Craig! I just purchased my first house hack investment property and am currently remodeling the basement(has full kitchen and bath). Did you legitimately convert the Single family’s into a Duplex or are they still single family dwellings with finished basements that you are renting out? Also, how do you manage the utility bills with the different strategies combined into one dwelling? Thank you!!
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Mason, Awesome man! Congratulations on that first purchase. I did not "legitimately" do so. I just separated it and renovated the basement. As for the utility bills, I still split it 5 ways. I am responsible for 3/5 of the payment since my tenants are not responsible or profiting from my AirBnb downstairs.
    Maureen Newman from North Palm Beach, Florida
    Replied about 1 year ago
    Like others, I can't imagine how you can be financially free with only $1525 cash flow a month; you can't pay a cell phone bill or medical insurance bill with appreciation or 'money not spent on mortgage/rent'. This is not meant to be a negative comment, I am legitimately curious! My number is more along the lines of needing to generate $10k a month, and that is with no mortgage or debt of any kind. I am just starting to research how to generate that level without having too many properties to focus on...7 properties even with the best property management team in the world would be daunting.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Maureen, This is a great question! First off, this number includes me living for free. So that is taken care of. I am a 27 year old single male which makes health insurance pretty darn low for me. This isn't my "end goal" number. This is just the number that allows me to quit my job and start taking risks in other areas. So I will still be working to get to that $10k to $20k a month goal.
    Jason R. Rental Property Investor from Snohomish, WA
    Replied about 1 year ago
    I am a fellow house hacker (house with ADU). Looking to repeat in the next 6 months. I also have a wife, 2 year old, dog and baby on the way. Roommates are pretty much out of the equation. Would love to see more content about 2-4 unit house hacks. Listened to your podcast interview and found that it was almost all SF house focused. Just a suggestion. Thanks, Craig!
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Thanks Jason! There is definitely a lot of information on 2-4 unit house hacks within BiggerPockets. In Denver, 2-4 units are so darn expensive it doesn't make any sense. The concepts are relatively the same though. The only thing is you remove the "roommate" factor.
    Kendra Levy Rental Property Investor from Denver, CO
    Replied about 1 year ago
    Can't wait to find my first house hack with you!!!!! You are an inspiration.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Thanks Kendra!!! You'll get one soon!
    Mehdi Amile
    Replied about 1 year ago
    Hi, It’s so awesome what you’re doing. I tried doing the same thing after purchasing my first property, but the lender said i couldn’t do anything less than 15% down because it was gonna be an investment property. My first house was bought for 3.5% down ( FHA). How could I get approved to buy another property for just 5% please ?
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Mehdi, Are you trying to purchase single family or multifamily (2-4 units)? On a single family, you can do 5% down conventional. However, on the multifamily is where you will run into more trouble and will require that 15% down payment.
    Brendan M. Rental Property Investor from Chicago, IL
    Replied about 1 year ago
    hey Craig, I'm curious about CO rules about using low money down programs. In IL, they changed the home possible (5% down) rule a couple times. initially, you could only do it once, they then said you could do it up to 10 times, but more recently reverted back to doing it once. In that time, I was able to acquire two four flats at 5% down which will allow me to get my third at 3.5% down. After that, I will have exhausted all my low money down options so i'm curious on CO's rules. I'm basically doing the same thing you are.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Brendan, As far as I know, you can only do the 3% down or 1% down home possible loans once. Then for single family homes you can do 5% down conventional. Though, I will need to look into this a bit deeper!
    Jason Koch
    Replied about 1 year ago
    Craig - great job on executing on the dream! Love the concept and creativity but most of all... EXECUTION! I live in Irvine Ca where there are zoning laws against what they call "boarding houses". Curios if local zoning laws is a concern for you? Also - not following the math on your Portfolio summary. Seems the 2019 monthly CF went from $1700 down to $700. What up with that? Cheers brother... look forward to the next update.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Jason, Each municipality is different in the Denver Metro area. Some allow 2 unrelated people, where others are 3, 4, 5, and unlimited. It's definitely something we have to be mindful of. That's a good catch on the numbers. In the $1,700 example, I do not include living for free or property management. I assume I pay myself rent. In the $700 cash flow, I assume that I live for free AND property management. When I move out of my current place, it will be about $2,100 of cash flow.
    Mark Keeler from Fremont, California
    Replied about 1 year ago
    Craig, Inspiring article and amazing comments. I need to look for a duplex in the Bay Area of California to house hack. Our family of 4 live in a 2 bedroom, 2-floor condo. I can rent this place for $2500 cash flowing $1000 after paying PITI and HOA.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Awesome Mark! Best of luck finding that duplex. I know CA is not an easy place for investors.
    Jordan Foster from Chico, CA
    Replied about 1 year ago
    Hello Craig, thanks so much for your article! I am in the process of finishing up your book right now, and I love it! I am a full time college student right now and planning to implement the strategy as soon as possible after I graduate. I have question for you or any other young house hackers out there. I have money saved for a down payment, but I foresee challenges getting a loan since I will not have a huge employer or income history shortly after I graduate. What challenges did you face in this area, and what finance advice, either traditional or alternative, would you have for somebody in my situation? Thank you so much for the constant great content, including the book! -Jordy
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Hey Jordan, Thank you! Glad you enjoyed the article. I had the same question when I was starting. You don't need two years of working history if you have a W2 especially if that is right after you graduate. They waive that requirement for those who just graduate. You shouldn't have a problem so long as you have a good paying W2 when you graduate.
    Jordan Foster from Chico, CA
    Replied about 1 year ago
    Thanks so much Craig! I really appreciate it!
    Juan Farias Torres from Skagit County, WA
    Replied about 1 year ago
    This was a great read! Thank you for sharing.
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Thanks Juan!!
    Andrew Lee Rental Property Investor from Cleveland, TN
    Replied about 1 year ago
    Thanks, Craig. We just helped our son to buy his first house hack at age 20. Love to hear your discipline and commitment!
    Craig Curelop Real Estate Agent from Denver, CO
    Replied about 1 year ago
    Awesome Andrew! At age 20?! He's going to be Financially Independent before he can drink! haha
    John Freeman
    Replied about 1 year ago
    Thanks for the write up, I have so many questions. You make it sound like this is Middle-of-nowhere, Colorado. I've got a friend doing Airbnb in downtown Houston and can't dream of hitting $2000 per month in short term rentals. How much do you charge a night? What kind of tenant do you get? $380k for a 6 bedroom house? Was there something seriously wrong with it? This number makes sense if you're in Middle-of-nowhere, CO, but no sense if you're in an attractive location. 8% appreciation every year for how many years? How do you get 8% appreciation in Middle-of-nowhere, CO? That seems unsustainable, especially when the long term national average is around 4%.
    Michael McCoy
    Replied about 1 year ago
    Congrats
    Andrew Atakpo Financial Advisor from Lakewood, CA
    Replied about 1 year ago
    Hey Craig great post! Love the valuable information. I was born and raised in Colorado, now live in Southern California. In escrow currently for a duplex house hack out here. Would love to get some property in my home state however as well. Do you think it's smart however to start out of state investing in Denver/Colorado Springs area where pricing has gone up quite a bit recently? Or maybe start in a cheaper market such as the mid-west or south first? Would love to hear your thoughts!
    Ben Geaghan
    Replied about 1 year ago
    Hi Craig, some simple technical questions for you, sir. How do you find the property? How do you estimate/set the rental price of a room? Have you seen successful real estate investing done in high property tax cities such as Houston, Texas?
    Bryan Scott Real Estate Broker from Castle Rock, CO
    Replied about 1 year ago
    @Craig Curelop. Hi Craig, Thanks for the write-up and all the sharing of details. Just one more detail I am curious about: Screening and approval/compatibility process for selection of individual room tenants? Can you discuss the do's/dont's concerning tenant selection when they all share the common elements of the property; e.g., bathrooms, kitchen, yard, deck, etc.? Clearly, this is not an issue for one family tenants occupying the whole house and, likewise, it isn't a hotel, but just wondering what pitfalls you might be able to comment on regarding how to please everyone. Also curious whether you attempt any sort of sound-proofing between upper and lower levels of one SFU; i.e., the house you hacked with the full basement dedicated to AirBNB? Thanks in advance for your comments!
    Andre Coleman from Charlotte, North Carolina
    Replied about 1 year ago
    Great article and house hack. I noticed you mentioned to use the 5% down conventional loan and then use the FHA for the next 2-4 unit. I didnt realize that was possible Thanks for the new information. 👍
    Andre Coleman from Charlotte, North Carolina
    Replied about 1 year ago
    So if someone purchased a house all cash. How can they tap into the FHA for the next house hack?
    Gloria Grotjan Investor from Aptos, California
    Replied about 1 year ago
    Thanks for the great article Craig. One question.....if you are a fulltime investor (no W2 income) what do you recommend for loan options?
    Steve Balinski from Roselle, Illinois
    Replied 12 months ago
    For the example property you gave, the numbers seem a little misleading, your first year is 58K, but you dont get that 30K appreciate every year after, that only counts once, plus the mortgage payout of 8K is only once as well. Also, you wrote $1050 cashflow before savings, but then below when you listed all 3 properties you put "2019 House Hack: $700 of monthly cash flow"??
    Michael Schlager Investor from Meridian, Idaho
    Replied 11 months ago
    Great article Craig. It's a simple formula, and you have executed it almost to perfection. Keep us updated.
    Peter Go
    Replied 10 months ago
    You have been a great resource for House Hacking Craig. I appreciate your book and article posts. Keep up the good work!