Is House hacking still best option to sell Denver multi family?

Question

Hey Denver investors, I'm trying to gauge the active local market. I have an unlisted, historic Victorian 4-plex in the SoBo corridor that I've stabilized at $4,572/month through summer 2027 across 3 units [AWE]. I'm intentionally leaving the 4th unit empty for an immediate house-hacker or turnkey owner-occupant, valuing it around $950k As-Is. Given how quiet the commercial desks have been this week, are out-of-state relocation house hackers still actively buying these owner-occupant plays, or are people mostly sitting on cash right now? Are House Hackers done? Thanks!

Dan Guenther · Answer

Hey @DK S., I’m an investor and agent here in the Denver and Northern Colorado markets with over 5 years of experience in the house hacking and rent by the room game, and I actually think there’s another buyer pool starting to emerge for properties like this beyond the traditional house hacker.

I’ve had a lot of success with co living and renting by the room, and I’m seeing more traditional investors look at that model as affordability continues to get tougher. Rather than looking at this as an owner occupant house hack, I’d be interested in underwriting it as more of a traditional non owner occupant investment, potentially using a co living model to increase the income.

A property that might be tough to make pencil as a conventional 4 plex at today’s rates can sometimes look pretty different when you start underwriting around total bedroom count and achievable room rents.

I’d be curious to learn more about this one. How many total bedrooms and bathrooms are there across the four units, what are the current rents by unit, and what does the vacant unit look like? I’d also be curious about utilities and whether there’s any opportunity to add bedrooms within the existing footprint.

That being said, house hacking is still alive and well in the Denver Metro but not so much at price points over the $600K range.

DK S. · Answer

Thanks for the insights! To clarify the layout: this is a classic 4-plex where each individual unit is completely self-contained with its own private kitchen and bathroom, so it is probably best for standard multi-family tenancy (and already has 3 of 4 leased as such through 2027) rather than a co-living or rooming-house model?? Since my basic platform tier limits outbound direct messages, please send me a Colleague Request here on the platform and I can privately share more numbers if interested. Thanks!

J Castro · Answer

Hi @DK S., welcome to BP!I don’t think house hackers are done — but I do think the buyer pool has become much more selective.

A stabilized 4-plex with one unit available for an owner-occupant can still be a compelling house-hack opportunity, especially when the buyer can use the other three units’ rental income to offset their housing costs.

At ~$950K, though, the numbers are going to matter a lot. Today’s buyer is likely looking closely at the purchase price, financing terms, projected rents, taxes, insurance, and the amount of cash needed to close.

For an out-of-state buyer relocating to Denver, the opportunity is probably less about “house hacking” being dead and more about whether the property provides a clear path to reducing their personal housing expense while building equity.

If the property can demonstrate strong rent coverage and a realistic owner-occupant financing strategy, I’d still expect qualified house hackers to take a serious look.

The days of buying almost anything because “it’s a house hack” may be over — but a well-priced, stabilized 4-unit in a desirable location with one unit available to the owner is a very different proposition.

I'd be curious to see the numbers on this one.

DK S. · Answer

Thanks for the interesting perspective. I was asking about Denver not Milwaukee which brings in an entirely different type of buyer pool. Of course it is less expensive to live in Milwaukee. The math may very well make sense for someone who is relocating from New York, California, and Texas, which is what has been happening in the Denver market. It all depends on their down payment and their income and what their goals are, so a broad sweeping comment like this does not actually address the math at hand. So the question remains—are out-of-state house hackers still relocating to Denver, and are our local Denver house hackers still actively looking?

Marcus Auerbach · Answer

No house hackers are not done at all, but I doubt your building makes sense: with a monthly payment of about 8k and 4.5k in income someone would be paying realistically (with some expenses) 5k for the privilege to live in an apartment. Seems like a stretch.

For perspective, you can buy a very nice duplex in Milwaukee for 400k-ish that brings in almost 4k in rent.

Is House hacking still best option to sell Denver multi family?

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