House Hacking in Dallas
Member since 2022 · 19 posts · 8 votes
House Hacking in Dallas
Most Popular Reply
Real Estate Broker · DFW · Member since 2015 · 350 posts · 270 votes
2moQuote from @Evan Folse:
Hey everyone!
I’m currently a college student and will be moving to Dallas full-time in about a year and a half. I’ve always followed BiggerPockets and am considering house hacking as my first investment.
I’m trying to figure out if a 2–4 unit house hack is still realistic in today’s market. I’ve been running numbers on duplexes within 45 mins of Dallas, but most seem to be break-even or negative cash flow at current interest rates even with all units rented.
For those investing in Dallas:
- Are you still finding deals that work?
- Are there certain areas or strategies I should focus on?
- Is house hacking still the best move for a first-time investor?
Would appreciate any advice!
Hey Evan! Welcome to real estate investing. I'm a real estate broker here in DFW and sell around 30m or so a year and i got my start in the investing world by house hacking. I bought a single family and did rent by the room and leased up the specific bedrooms and did that a few times before converting them to long term rentals or coliving properties.
As some other posters mentioned rent by the room is the way to go right now and if you find the right property with 5-6 beds or a 4 bed with the square footage to add another room cheaply its a great way to offset your entire living expense. 2-4 are harder especially if you're only doing sub 5% down and they are generally is bad areas if they pencil.
I've helped probably over 50 people from BP buy a house hack. If you have anymore questions feel free to DM me!
16 Replies
- Rental Property Investor · Laguna Niguel, CA · Member since 2019 · 175 posts · 116 votes2mo
What about rent by the room? Getting a single family and renting the rooms out individually?
- Member since 2022 · 19 posts · 8 votes2mo
@Dale K Poyser After running the numbers, rent by room seems much more realistic as an option. My only opposition is listening to BP and reading on the internet living WITH tenants is something I should supposedly avoid at "all cost." I'm not from Dallas, so I couldn't convince one of my friends. Do you have experience and or advice on what I could potentially do from that position?
- 2moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 917 votes
Quote from @Evan Folse:
Hey everyone!
I’m currently a college student and will be moving to Dallas full-time in about a year and a half. I’ve always followed BiggerPockets and am considering house hacking as my first investment.
I’m trying to figure out if a 2–4 unit house hack is still realistic in today’s market. I’ve been running numbers on duplexes within 45 mins of Dallas, but most seem to be break-even or negative cash flow at current interest rates even with all units rented.
For those investing in Dallas:
- Are you still finding deals that work?
- Are there certain areas or strategies I should focus on?
- Is house hacking still the best move for a first-time investor?
Would appreciate any advice!
House hacking is still one of the best ways to get started, but don't feel like you have to limit yourself to Dallas. If you're open to investing out of state, Midwest markets can offer much lower entry prices and stronger cash flow on small multifamily properties. A lot of first-time investors start there because the numbers make it easier to build equity and scale. Keep running the numbers and stay patient, the right deal is worth waiting for.- Member since 2022 · 19 posts · 8 votes2mo
@Arman Ahmed Sounds good! I saw your DM. I will read it in a moment, and respond there! Thanks!
- 2moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Evan Folse:
Hey everyone!
I’m currently a college student and will be moving to Dallas full-time in about a year and a half. I’ve always followed BiggerPockets and am considering house hacking as my first investment.
I’m trying to figure out if a 2–4 unit house hack is still realistic in today’s market. I’ve been running numbers on duplexes within 45 mins of Dallas, but most seem to be break-even or negative cash flow at current interest rates even with all units rented.
For those investing in Dallas:
- Are you still finding deals that work?
- Are there certain areas or strategies I should focus on?
- Is house hacking still the best move for a first-time investor?
Would appreciate any advice!
Great question and welcome! House hacking is still one of the best ways to get started because you're combining a place to live with your first investment, but the numbers definitely require more patience than they did a few years ago. I'd base your decision on today's rents and expenses rather than hoping future rent increases will make the deal work. If duplexes are coming up short, it may be worth expanding your search, looking at properties that need light cosmetic updates, or considering renting by the room if it fits the property and local rules. The best deals are usually the ones that need a little creativity rather than being turnkey. Keep analyzing deals now so you're ready to move quickly when the right one comes along. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews- Member since 2022 · 19 posts · 8 votes2mo
@Jimmy Lieu Thank you! I'll shoot you a message.
- Real Estate Broker · DFW · Member since 2015 · 350 posts · 270 votes2mo
Quote from @Evan Folse:
Hey everyone!
I’m currently a college student and will be moving to Dallas full-time in about a year and a half. I’ve always followed BiggerPockets and am considering house hacking as my first investment.
I’m trying to figure out if a 2–4 unit house hack is still realistic in today’s market. I’ve been running numbers on duplexes within 45 mins of Dallas, but most seem to be break-even or negative cash flow at current interest rates even with all units rented.
For those investing in Dallas:
- Are you still finding deals that work?
- Are there certain areas or strategies I should focus on?
- Is house hacking still the best move for a first-time investor?
Would appreciate any advice!
Hey Evan! Welcome to real estate investing. I'm a real estate broker here in DFW and sell around 30m or so a year and i got my start in the investing world by house hacking. I bought a single family and did rent by the room and leased up the specific bedrooms and did that a few times before converting them to long term rentals or coliving properties.
As some other posters mentioned rent by the room is the way to go right now and if you find the right property with 5-6 beds or a 4 bed with the square footage to add another room cheaply its a great way to offset your entire living expense. 2-4 are harder especially if you're only doing sub 5% down and they are generally is bad areas if they pencil.
I've helped probably over 50 people from BP buy a house hack. If you have anymore questions feel free to DM me!
- Member since 2022 · 19 posts · 8 votes2mo
@Harrison Sharp Thank you! I will send you a message.
- Member since 2022 · 19 posts · 8 votes2mo
@Harrison Sharp I think you might have to add me back for me to DM you? Unsure. -- Figured it out
- 2moDerek BrickleyBusiness MemberLender · Ann Arbor, MI · Member since 2021 · 664 posts · 226 votes
Hey Evan!
Speaking more generally for those we're working with now, there might be more properties for sale but that doesn't necessarily mean they're good deals as you're seeing haha yes there are deals that work but everyone criteria is different. For my first househack the important part for me was does this lower my living expenses AND is this a place I want to live. Quality of life is important so I'd say don't overlook that. Overall househacking is still super solid though so definitely still seeing people have success when done the right way. If it's helpful though feel free to shoot me a message happy to go through either my deals or what I've seen other people doing more recently.
Gold Star Mortgage Financial Group548 Reviews - Member since 2025 · 242 posts · 98 votes2mo
Spot on analysis. DFW multifamily yields are tight. Look at SFR room by room hacks or ADUs instead. Saving on your own rent is the real yield here. Cash flow comes post exit.
- Member since 2022 · 19 posts · 8 votes2mo
@Kate Sanchez Thank you! That's what I've been seeing. I am going to reassess the market when it gets closer to time to find somewhere to live. I still have around a year before I have to start truly looking.
- 2moRobert EllisBusiness MemberDeveloper · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
Quote from @Evan Folse:
Hey everyone!
I’m currently a college student and will be moving to Dallas full-time in about a year and a half. I’ve always followed BiggerPockets and am considering house hacking as my first investment.
I’m trying to figure out if a 2–4 unit house hack is still realistic in today’s market. I’ve been running numbers on duplexes within 45 mins of Dallas, but most seem to be break-even or negative cash flow at current interest rates even with all units rented.
For those investing in Dallas:
- Are you still finding deals that work?
- Are there certain areas or strategies I should focus on?
- Is house hacking still the best move for a first-time investor?
Would appreciate any advice!
I think you've already done one of the most valuable things—you've run the numbers instead of assuming every house hack works. We've underwritten a lot of properties over the past year, and I've been surprised how many look close until you factor in reserves, maintenance, and realistic financing costs. Break-even can turn into negative cash flow pretty quickly.
When we started comparing markets, Dallas wasn't the only place where that happened. What changed our thinking wasn't finding a market with the highest rents, it was finding places where the acquisition basis made the refinance and second purchase easier to execute. That shifted the focus from "Can I make this first deal work?" to "Can I repeat this process?"
Out of curiosity, if the duplexes stay break-even over the next year, would you still buy one to reduce your own housing costs, or would you wait until the numbers clearly support the investment?
Section 8 Launch52 Reviews- Member since 2022 · 19 posts · 8 votes2mo
@Robert Ellis I think my answer is, it depends. I have 3 semesters left of college. I will highly likely end up in Dallas. Depending on the job I land can mean different things.
With that being said, if I can find a 2-4 unit that would fit inside my budget I wouldn't necessarily care that it's negatively cash flowing because of rent cost in Dallas.
I think my "perfect deal" in 2026, would honestly be a property that I'm still in the red on but I'm saving because it's beating the rent market. Ideally, this perfect situation would be completed if when I move out I see a tiny bit of green.
- Lender · Dallas, TX · Member since 2023 · 18 posts · 7 votes6d
Evan-
I am a lender in the Dallas area and work with a lot of house hacking investors utilizing FHA or Conventional financing on multi unit deals. FHA is great if it is 1-2 units but if it is 3-4 units the property has to pass something called a self sufficiency test which typically doesn't make it viable. Conventional with 5% down for 3-4 units could still be very attractive. There are also less costs with a Conventional loan and you have PMI (mortgage insurance) benefits.
House hacking specifically in Dallas proper can be tough to make the numbers work since prices are still high and property taxes and ever increasing insurance costs compress your margins, but it is very possible to house hack a multi family and have your net monthly payment be close or less than what you would be renting for elsewhere plus you're paying down the loan in an appreciating asset. I also think while rates remain high and buying a property continues to be unattainable for alot of people (the average first time buyer is now close to 40) rents will continue to increase over the next few years which will help. Most of my house hacking investors who are having the most success are looking in the fringes of Dallas in different suburbs. There is alot of activity going on in the outskirts of Dallas.
Happy to connect and discuss further! We can always help strategize for next purchase if you plan to replicate this 1-3 times. I have personally house hacked 4 properties myself so very familiar with the nuances personally.
- Investor · Forth Worth, TX · Member since 2026 · 7 posts · 3 votes5d
Hey man, honestly your numbers are pretty much spot on for what I've seen in the DFW market lately. I'd check out DealCHeck or Estatalyze or Properstar to compare deal analysis—each platform kinda gives you a different angle on things. A lot of duplexes right around Dallas just don't cash flow at today's rates unless you're looking at C-D areas, which comes with its own headaches. I'd maybe look at Oak Cliff or even a single family with rentable rooms as an alternative. Also definitely underwrite assuming today's rate stays put, don't bank on a refi saving the deal. House hacking can still be a solid first move though if you're cool with breaking even for a year or two while building equity.
M
Join the conversationCreate a free account to reply, vote on answers and follow this thread.