House Hacking in 2026 in Texas or North Carolina

Real Estate Broker · Cincinnati, OH · Member since 2022 · 133 posts · 86 votes

1mo

I think the biggest mistake would be forcing a duplex just because the original goal was to house hack one.

At a $400K-ish price point, especially in Austin, you may be trying to make the property fit the strategy instead of finding the best property available. If duplex inventory is limited, the neighborhoods are questionable, and the rents don’t support the price, I wouldn’t stretch the numbers just to say you bought a duplex.

I’d probably work backwards from your real goals:

Buy in an area you and your wife actually want to live in.
Keep the monthly payment comfortable.
Look for some way to offset the payment—duplex, ADU, garage apartment, separate entrance, extra bedroom, etc.
Make sure the property still makes sense as a rental after you eventually move out.

That last part is important. A house hack doesn’t necessarily have to cash flow beautifully on day one. If living there saves you $1,000–$1,500/month compared with renting something similar, that savings is part of the return too.

I also wouldn’t underestimate the value of your $70K–$80K liquidity. You don’t necessarily need to deploy all of it into the down payment. Keeping reserves gives you flexibility for repairs, renovations, or another investment later.

And if the numbers truly don’t work in the city where you want to live, there’s nothing wrong with separating the two decisions: buy your primary residence where you actually want to live and buy the investment property somewhere else where the numbers make sense.

The deal has to work. The strategy doesn’t have to look exactly like the one you originally pictured.

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Fabio Cattolico
OP
Member since 2025 · 20 posts · 21 votes
1mo
@Victor Patel incredible advise I really appreciate it!!
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Justin BrickmanBusiness Member

Realtor · San Antonio, TX · Member since 2021 · 502 posts · 274 votes

1mo

Hey Fabio I have an awesome listing coming up in San Antonio from one of my VA clients coming to the market soon. It's an 1900 sq ft main home with a 700 ft 1 bed bath casita with a full kitchenette. If you shoot me a message I can share more details, we should be on the market next weekend.

Sounds like it’s exactly what you’re looking for

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Diego AlvaradoBusiness Member

Real Estate Agent · Flower Mound, TX · Member since 2016 · 294 posts · 139 votes

1mo

Hi @Fabio Cattolico

It really comes down to running the numbers. While inventory can be scarce in some areas, there are still multiple strategies that could work well for you. Co-living is booming across Dallas and the DFW metroplex right now, making house hacking a fantastic option.

Another great route is a live-in flip. This approach will give you a distinct competitive advantage over other investors in the market.

Good luck in your decision and your way to real estate investing.

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Gregory AcsPro Member

Lender · MD · Member since 2025 · 137 posts · 52 votes

1mo

I don’t think it’s hopeless, but I do think it’s become much more important to be flexible. If you’re set on one neighborhood, one property type, or one strategy, it can definitely feel like there are no good deals. Sometimes expanding your search radius or being open to a duplex that needs light updates can create opportunities that aren’t obvious at first.

I’d also be careful not to compare today’s market to what was possible a few years ago. The numbers are different now, so I’d focus on whether a property works at today’s prices and interest rates rather than waiting for conditions to look like they did in 2021. Since you’ll have $70-80k saved, keeping enough reserves after closing is just as important as finding a property that cash flows.

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Rick Albert

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

1mo

I would focus on lifestyle play. Your marriage is more important. Take it from someone who house hacked for seven years my my wife.

The challenge I have been seeing with Texas is that they have over built. Buying a duplex can be challenging knowing there are new construction apartments down the road with all of the amenities imaginable. The only way you can compete is on price.

What might be interesting is buying a single family home and converting the garage into an ADU for rental. That way you buy in a neighborhood you like while getting some rental income. I would imagine the cost and timeline is much faster in these markets than here in Los Angeles.

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Nicholas L.Pro Member

Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes

1mo

@Fabio Cattolico

i can't tell you where to move to, but I do have good news for you - "invest out of state to find a cash flowing property" is not a realistic alternative, because LTRs don't cash flow right now. at all. not a bit.

this OP wanted cash flow:

C class neighborhood property Management issue

and so did these folks:

https://www.biggerpockets.com/forums/48/topics/1137397-baltimore-a-path-to-never-ending-pain

https://www.biggerpockets.com/forums/432/topics/1231840-sell-at-a-loss-or-rent-at-a-loss

https://www.biggerpockets.com/forums/311/topics/840134-memphis-turnkey-tenant-turnover-costs

https://www.biggerpockets.com/forums/963/topics/1195280-experience-of-oos-investing-in-cleveland-after-15-years

and none was to be had.

so you're not missing out on anything by continuing to deliberate on a house hack.

good luck!

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Arman AhmedPro Member

Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 905 votes

1mo

Quote from @Fabio Cattolico:

Hey everybody,

My wife and I live in NYC and are likely planning on moving in about a year or so. At that time we'll have about 70-80k saved up. We have family in Texas (San Antonio) and lived there before. My wife is really against moving back to San Antonio but loves Austin, but also would be open to smaller places around Austin and Dallas. She's also open to move to North Carolina and potentially Georgia. We would love to house hack a duplex that makes sense from a numbers perspective and is not in a bad area of town. It doesn't have to be an A+ neighborhood, but should feel comfortable walking around the neighborhood by yourself. I'm struggling to figure out what to do. Duplex inventory is scarce and usually in bad/hideous areas and the numbers don't look great. I'd be happy with doing some cosmetic work (if it brought up the value) but even that seems to be tricky in Austin since I see properties that are renovated selling for about the same as some unrenovated ones here and there. I'd also be happy with a single family and ADU but we don't want to spend much more than around 400K. Sometimes I think it would be best to invest out of state to find a cash flowing property. What have you done as Texas investors if you bought recently (after 2024). With these interest rates and property values it almost seems hopeless to make anything a good investment

I’d separate the two goals: finding a home you actually want to live in and finding a great investment. If the Austin/DFW duplex numbers don’t work, don’t force it just because you want to house hack. With $70K–$80K saved, I’d also compare Midwest markets, where your budget can open up more options for a duplex or single-family with better cash-flow potential. You can still buy a home in a market you love while building your investment portfolio somewhere the numbers make more sense.

[email protected]614-418-6081

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Ashish AcharyaBusiness Member

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

1mo

Fabio, I'd start by deciding whether the goal of the first purchase is primarily reducing your own housing cost or maximizing investment cash flow. That distinction can make the decision between a duplex, single-family with an ADU, or an out-of-state rental much clearer.

For a house hack, I would not force a duplex if the available inventory is poor. A well-bought single-family property with a legal ADU or another rentable portion can still work, but I'd underwrite the property using today's realistic rent and make sure the deal still makes sense without assuming appreciation will rescue it.

I’d also keep the tax side in mind. When part of a home is rented and part is used personally, expenses and depreciation generally need to be allocated between the personal and rental portions. Once the rental portion is placed in service, cost segregation may be worth evaluating, but I’d first determine whether the accelerated losses will actually be usable under the passive-loss rules.

And I would not rush into creating multiple LLCs for the first property. An LLC may serve a liability or ownership purpose, but it does not automatically create rental tax savings.

With $70K–$80K saved, I’d protect enough liquidity for reserves and compare a few actual properties side by side instead of trying to pick the perfect city first.

Happy to connect!

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Jimmy LieuBusiness Member

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

1mo

Quote from @Fabio Cattolico:

Hey everybody,

My wife and I live in NYC and are likely planning on moving in about a year or so. At that time we'll have about 70-80k saved up. We have family in Texas (San Antonio) and lived there before. My wife is really against moving back to San Antonio but loves Austin, but also would be open to smaller places around Austin and Dallas. She's also open to move to North Carolina and potentially Georgia. We would love to house hack a duplex that makes sense from a numbers perspective and is not in a bad area of town. It doesn't have to be an A+ neighborhood, but should feel comfortable walking around the neighborhood by yourself. I'm struggling to figure out what to do. Duplex inventory is scarce and usually in bad/hideous areas and the numbers don't look great. I'd be happy with doing some cosmetic work (if it brought up the value) but even that seems to be tricky in Austin since I see properties that are renovated selling for about the same as some unrenovated ones here and there. I'd also be happy with a single family and ADU but we don't want to spend much more than around 400K. Sometimes I think it would be best to invest out of state to find a cash flowing property. What have you done as Texas investors if you bought recently (after 2024). With these interest rates and property values it almost seems hopeless to make anything a good investment

Welcome to the community, Fabio! I wouldn't force a duplex just because house hacking is the original plan. If duplex inventory in the areas you actually want to live doesn't pencil, a single-family with an existing ADU, room-rental potential, or the ability to add an ADU could still accomplish a lot of the same goals. I'd also separate the "where do we want to live?" decision from the "where should we invest?" decision. Austin may be a great lifestyle fit for you two, but that doesn't automatically make it the best place to deploy your $70–80K if cash flow is important. With a $400K ceiling, I'd compare several markets based on purchase price, realistic rents, taxes, insurance, vacancy, and future demand rather than trying to make one city satisfy every goal. Columbus is another market I'd put on the list. I moved here from Portland in 2020 for similar affordability reasons, and there are still areas where $120K–$180K rentals can get close to the 1% rule; I've seen a $120K purchase rent for $1,550/month. With your move still about a year away, you have time to narrow down where you actually want to live and run real house-hack numbers in each market before committing. Happy to connect and answer any questions you have!

[email protected]614-300-7535

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Steven WesolowskiPro Member

Realtor · San Antonio, TX · Member since 2023 · 272 posts · 42 votes

3w

Hi Fabio!
Good to know you have family in San Antonio, but looking at broadening your horizons further north. Do not underestimate just north from San Antonio though. A lot of new developments are happening along I-35 north, and there are plenty of properties you can rehab or lightly modify to market appeal higher rents or if you are looking to do a quick house flip. With only $70k saved up, you are going to have to use hard money financing to keep up with the pace of market AND even afford off market deals priced close to $400k. By the way, it's not even common to find deals just under $400k price-tags using only $70k liquid, you are going to have to check your pre-qualifiers with a capital-backed lender ready to fund your deal 24-48 hours prior to the closing dates. $70k might be enough for your closing funds using a lender, but might not be enough to qualify for their loan product. I have got a few hard money lenders I can refer you to, particularly if you are looking for deals whether duplex or single family with ADUs or casitas, ready for your review. Let me know.

Do not feel like it's hopeless, if you have 30k - 50k proof of liquidity, I am confident you will find a non-HOA duplex you can get for under $200k or even SFR + ADU for under $150K all day around San Antonio. You don't have to live in San Antonio to invest, instead, have the property generate income for you and bank off of that. Folks do it down here everyday, you just need a helping hand to match your ideal risk tolerance as well.

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Alyssa MarquezBusiness Member

Real Estate Agent · San Antonio TX / Fort Lauderdale, FL · Member since 2023 · 114 posts · 25 votes

2w

I wouldn't push a duplex if your only reason is due to House Hacking. You have the current pricing and rates that there is around Austin, it just might not pencil out to what you are looking for in a duplex. Look into a few options: the duplex, a single family with a usable or potential ADU, or maybe one where renting out rooms will offset your payment.

Even if you decide on not buying in San Antonio, considering there are already friends/family who are there, I would continue to consider it. A more pertinent question is where is your focus: lifestyle, lowering costs, or highest rate of return. The place where it works best for you to live may be different from where it works best for you to invest.

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Christian TurnerPro Member

Lender · Coral Gables, FL · Member since 2026 · 20 posts · 5 votes

1d

Mortgage broker licensed in Texas here. The strategy advice above is right (don't force the duplex), so let me add the financing pieces that change the math and that most people planning a move don't find out until they're under contract.

Your $70-80k goes further than you think. Since late 2023 conventional loans allow 5% down on an owner-occupied 2-4 unit, so a $400k duplex is $20k down, not $100k. FHA is 3.5%. On a 2-unit, either program lets you count 75% of the other unit's rent toward qualifying, and a duplex avoids the FHA self-sufficiency test that makes 3-4 units so hard to qualify in Austin price ranges. That leaves you $50k+ for closing costs, reserves and the cosmetic work, which is a much healthier position than draining everything for 20% down.
Single-family plus ADU works too, and lenders now count it. On a conventional loan a legal ADU's rent (or an appraiser's market rent estimate) can be used to qualify on a 1-unit primary residence, and FHA allows it as well. So a house with a garage apartment in a neighborhood your wife actually wants to live in is a real house hack on paper, not just in spirit.
The move itself is the part to plan around. If you're taking a new job in Texas, conventional guidelines let you close up to 90 days before your start date with a non-contingent offer letter, so you don't have to rent for a year first. If you're keeping the NYC job remotely, get a letter from the employer confirming the remote arrangement before you apply, because underwriting will ask.
Texas property taxes are the number that breaks Austin house-hack math. Figure roughly 2% of value a year in most of Travis County, and the taxes reset to your purchase price, so the seller's bill is not yours. File the homestead exemption the January after you close. It is the reason the same duplex in San Antonio or the Dallas suburbs often cash flows when Austin doesn't, and it should be in the spreadsheet before the neighborhood is.

My honest read: at $400k with your savings, a duplex or SFR-with-ADU in a suburb of Austin or Dallas, bought with 5% down and the rent from the other unit offsetting the payment, is very doable in 2026. It won't cash flow like an out-of-state rental, but it also gives you a place to live and a property that qualifies as a rental the day you move out.

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House Hacking in 2026 in Texas or North Carolina

House Hacking in 2026 in Texas or North Carolina

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