House Hacking to get start Real Estate investing

Mike PaolucciBusiness Member

Realtor · Columbus Cleveland Dayton, OH · Member since 2022 · 504 posts · 556 votes

[email protected]614-892-9184

I'd recommend maybe looking at partnering up with someone you know or have a relationship with in order to qualify and buy. If you're able to find a duplex that would pass an FHA inspection, then the two of you should be able to afford the 3.5% downpayment + closing costs in order to get in for as little money as possible.

If that's not an option then I'd recommend saving up your capital so you can then go and afford it yourself.

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2 Reply

Marcus Auerbach

Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes

House hacking is great and a good way to get started and it's great that you ask: 'how can I" instead of saying "I can't". But partnering is a really bad idea, expect if you partner with your parents maybe.

Let me be blunt: you are not an attractive partner, what you could offer has next to no value, but comes with the full risk of partnering with someone. It's basically like why would you partner with your broke tenant. (sorry for beeing so direct)

Avoid FHA if you can, you'll pay for it over and over. You need 5% down for a conventional load, that's much more attractive to a seller, better interest rate and very important: you are not locked into paying PMI forever.

A duplex in Coos Bay will run you 500k, so you'll need 25k for down payment, plus some extra for moving, paint and carpet.

Family money is really you best move at this point unless you have another way of generating cash. Find a side hustle that will generate you 2k per month and you'll be ready in a year. For example flip couches or appliances. Plus you learn a lor of skills you will need later to invest.

2 Reply

Gregory AcsPro Member

Lender · MD · Member since 2025 · 249 posts · 94 votes

I like that you're thinking creatively, but I'd focus on building a strong plan before looking for a capital partner. Most investors will want to see that you've identified a solid property, understand the numbers, and have a clear strategy for managing the investment. Even if you end up partnering with someone, being able to confidently present the deal usually matters as much as bringing cash to the table.

I'd also spend some time learning what financing options are available for owner-occupied multifamily properties. Depending on your situation, you may have more paths to getting started than you realize.

Nicholas FloydBusiness Member

NY · Member since 2026 · 322 posts · 104 votes

Well congrads on knowing what you want, as far as finding funding there's quite a few options available. I own a business funding consulting company and I run into people who desire exactly what you said that you wanted. There usually surprises at home many options they have available to them. If you would like to talk more in depth feel free to shoot me a dm and we can talk further on it.

Jeff Roth

Real Estate Consultant · Ann Arbor, MI · Member since 2022 · 471 posts · 260 votes

Hi Tara from Oregon-

Great question! You are hoping to house hack a duplex by living in one of the units and renting out the other unit but wondering the options for the initial capital for the downpayment and reserves and are thinking a capital partner may be a solution.

One thought is to see if you can find a lender or local housing authority program that has down payment assistance or low down option to help and remember because you are buying this as a primary residence the amount down would already be less.

You could also approach the owners of duplexes directly and see if they would be interested in selling it to you with a form of seller financing. At least pay a local lawyer to make sure it is papered up correctly. If the seller had multiple properties and were open to having help with the property management for them you could also barter your time to get an opportunity as well and learn something along the way.

To Your Success!

Jules Aton

MD/DC · Member since 2024 · 1k+ posts · 1k+ votes

Love your drive but to set things in motion you will need some skin in the game and by skin I mean cash. If you don't have a wealthy family to assist it will likely entail working overtime with a side hustle and living like a broke college student with roommates for a few years. It isn't sexy or quick but you can get there with brute force to start the trajectory. Ask me how I know. And be cautious of those trying to "help" who stand to gain.

Ashish AcharyaBusiness Member

CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes

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Tara, I’d be very careful about giving away 80% of a deal simply because you’re short on the upfront capital.

For a house hack, the biggest advantage is that you’re buying a property you’ll live in while using the other units to offset your housing cost. If you bring in an LP partner, the ownership, financing, occupancy, decision-making, distributions, and exit terms all need to be structured very clearly from the beginning.

Before agreeing to any 80/20 split, I’d model exactly what the investor is contributing versus what you’re contributing through occupancy, deal sourcing, management, and ongoing responsibility. Depending on the financing, an outside equity partner can also complicate owner-occupied loan eligibility, so I’d make sure the financing structure and ownership structure work together before signing anything.

From the tax side, a multifamily house hack also has a mixed-use element because part of the property is your personal residence and part is rental. That affects how mortgage interest, property taxes, utilities, repairs, and depreciation get allocated.

If you do bring in a partner, I’d have the operating agreement and tax allocations reviewed before closing rather than trying to sort them out after the first year.

Happy to connect!

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Ryan SpathBusiness Member

Real Estate Agent · Boise, ID · Member since 2017 · 583 posts · 380 votes

[email protected]208-600-2814

I like the mindset and the how can I attitude. Personally Im not a fan of the partnering aspect. Do you have family that can help with the downpayment? Are you able to increase your skills to be worth more in the workplace and be able to save more? Are you familiar with the flow of your money and where you can cut costs to be more liquid.

Im not in your market but looking at homes.com I found 405 S maple St its a 2/1 each side duplex and it looks like it has a garage. Lets assume you do go FHA and are willing to pay the MIP forever to be able to get into a place with as little down as possible. This property has been on the market for 115 days so I am willing to guess you would at minimium be able to get closing costs covered and some help towards your rate to buy it down. so you will need $12,915 down. Personally, if this is all the money in the world you have, keep saving. RE is a capital intensive business and HVAC, roofs, etc are expensive. At 369k 6.4% apr PI is $2,227.33, taxes $265, Insurance I guessed $1500 a year or $125 a month. MIP ~$178 a month. All in payment is ~$2,795.28, rentometer tells us median rent is ~$1400. If you are able to rent a room in your unit for $800 you will pay $600 + your utilities. Not a bad start to get into the space. Good luck!Reach out if you have questions, not in your market but the fundamentals are the same.

Rick Albert

Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes

So basically you want to own a property but not put any skin in the game? That becomes a challenge for anyone to partner. But also who is going to pay for the repairs, vacancy, and any other surprises? Going in with little to no money can be a slippery slope for anyone (partner or not).

You can get a gift as a down payment to help purchase the property. You could also partner with someone where you both live in the multifamily but take on different roles. For example (and I've never seen this done so take it with a grain of salt) but let's say you and friend buy it where the friend supplies the down payment and closing costs. But you are responsible for property management and you pay your partner a certain amount each month until your partner is made whole. Whether it is 50/50 or maybe you end up paying 60/40 but still have 50/50 ownership to make it worthwhile for the partner. That way your partner doesn't feel like they are giving you a free loan while riding the appreciation.

You just really need to give good incentives for the other person in order to invest. Or you save up and buy it yourself. I understand the urge to buy as soon as possible but buying right means buying when it is right for you.

Wale LawalBusiness Member

Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes

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@Tara Witherbee

While the house hack can prove to be a brilliant starting point in case you have limited funds at your disposal, try to understand if you are eligible for any forms of owner-occupied financing such as FHA before looking out for a funding partner because it will help you in lowering the requirement for capital. In case you do get a funding partner on board, make sure that everything is legally laid out in writing before you put money into it.

Good luck!

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Jimmy LieuBusiness Member

Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes

[email protected]614-300-7535

Quote from @Tara Witherbee:

Hello all! I have a question, and I'm hoping someone has someone that can help me get into doing this. I have admitted to not having any capital of my own, so I am trying to find alternatives to helping me start. I would like to find a multifamily home (duplex or triplex) where I can live in one of the units while taking care of the property/tenants. But this is what I'm thinking ( and where I need your help) is finding someone to fund the investment, and then of course, talk about how to work that whole thing out. As long as I live in the unit, be an LP to the investment, get 80/20? ( I don't know, again something to be talked about, regarding the split) and whatever else needs to be done. I'm still trying to find someone experienced who can help me get this going. I am actually looking in the Coos Bay, Oregon area ( I had to say "Bend" because they didn't have Coos Bay listed in the drop down for "location" above. If anyone is living in Coos Bay and could help, or anywhere in Oregon that could help, that would be a plus. Otherwise, I need thoughts, ideas or workaround ways to do this? I would love to have a working relationship with a capital partner/investor who may be interested in something like this. Please let me know. Thank you all for your time and have a Beautiful Day! ~Tara

Welcome to BP, Wale! The house-hack idea with a duplex or triplex is a solid place to start, but with no capital, I’d focus less on deciding the 80/20 split right now and more on figuring out exactly what you can bring to a partnership. A capital partner will usually want to know what their return looks like, who qualifies for financing, who covers the down payment, reserves and unexpected repairs, and what happens if the property loses money or one partner wants out. If your contribution is finding the deal, living there, and managing the property, put a realistic value on that and build a clear proposal around it. I’d also talk with a lender before searching too far because owner-occupied financing may give you options you haven’t considered, depending on your income and credit. Once you know what you can qualify for and how much cash is actually needed, it’ll be much easier to approach potential partners with a real deal structure instead of just an idea. Happy to connect and answer any questions you have!

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Adrian Lammersdorf-SciollBusiness Member

Realtor · FL · Member since 2020 · 234 posts · 101 votes

[email protected]561-305-2404

It wouldn't be a bad idea to talk to someone in your family and see if they will put some money down for you to live in a small multi unit property and do all the management while they get half the ownership. You do all the work and put your sweat equity into it, and they get a free low down payment loan so it can be a win for both parties. You would need a year of income in your area, and enough income to qualify for it, but you could always use the family members income as well. This would require trust and definitely get the advice of a lawyer before pursuing further.

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