I am 28 years old, I work in the mortgage industry as an account executive for a Non-QM lender, and originate some investor purpose loans on the side. Obviously, this is where I found my interest in real estate investing and what got me thinking about this in the first place.
I am very knowledgeable on the financing side of stuff, but I specialize in only Non-QM (DSCR Included) so I have no knowledge of FHA or conventional type loans. I'd like to hear from someone who has taken the house hacking route for their first home.
How realistic is it to get a FHA loan on a duplex or triplex and find renters to cover the mortgage?
What are the things I should look for in a property that makes it a solid choice for this strategy?
Another side thought. I had an idea that getting a Duplex or triplex in a section 8 area so that the government takes care of most of the rents and I don't have to worry about chasing down payments. What are the risks associated with this. Good idea or bad?
Real Estate Agent · Morristown, NJ · Member since 2020 · 206 posts · 128 votes
2mo
Who cares if you're living for free on your first house hack? Why is living for 80% off not enough? I started by house hacking a 2 bedroom condo. I was living for about 50% off and that was more than enough of a kickstart to keep growing my portfolio.
I am 28 years old, I work in the mortgage industry as an account executive for a Non-QM lender, and originate some investor purpose loans on the side. Obviously, this is where I found my interest in real estate investing and what got me thinking about this in the first place.
I am very knowledgeable on the financing side of stuff, but I specialize in only Non-QM (DSCR Included) so I have no knowledge of FHA or conventional type loans. I'd like to hear from someone who has taken the house hacking route for their first home.
How realistic is it to get a FHA loan on a duplex or triplex and find renters to cover the mortgage?
What are the things I should look for in a property that makes it a solid choice for this strategy?
Another side thought. I had an idea that getting a Duplex or triplex in a section 8 area so that the government takes care of most of the rents and I don't have to worry about chasing down payments. What are the risks associated with this. Good idea or bad?
Thanks in advance :)
Hi Isaac, I have helped clients in my local market house hack a duplex with an FHA loan. I can not speak on your local market as I am not familiar. In my experience the purpose of the house hack in todays landscape is to offset living expenses, with today's prices and rates it isn't a realistic expectation to have the rents offset your living costs. This my be possible if you are to also rent the extra room in your unit but it would require proper underwriting. The one thing you are going to want to take into consideration, does the property cover itself when you decide to move out? And by cover itself I mean taking into account vacancy, Capex, repairs, etc. Be aware of the age of the major components, roof, hvac, electrical. One major repair in the first couple of years can kill you if you are not prepared. Have plenty of reserves, when something breaks, it is your responsibility. Best of luck and reach out if you have any other questions, glad to be a resource.
Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 605 votes
2mo
@Isaac Gaetano House hacking with an FHA loan on a duplex, triplex or fourplex is definitely a realistic strategy if you are willing to live in one of the units. Just make sure you run the numbers carefully so the expected rental income comfortably offsets your mortgage and other expenses. As for Section 8, it can provide reliable rental income but be sure to understand the inspection requirements and local program rules before investing. Best of luck.
Real Estate Agent · Morristown, NJ · Member since 2020 · 206 posts · 128 votes
2mo
Who cares if you're living for free on your first house hack? Why is living for 80% off not enough? I started by house hacking a 2 bedroom condo. I was living for about 50% off and that was more than enough of a kickstart to keep growing my portfolio.
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
2mo
In terms of living for free, unlikely to happen. If the numbers work at 3.5% down, why wouldn't an investor putting 20%-30% down buy it and likley pay a higher price? House Hacking is a great way to lower your overall expenses, build equity, tax benefits and appreciation.
In terms of buying with FHA, the only challenge on 3 and 4 unit properties is the self sufficiency test. I haven't seen a property pass that test in literally years with the current prices. I would go 5% down if you can.
For Section 8, the only "bad" experience I've had so far is if the government is late on paying, it is what it is. It isn't always clockwork. I actually switched PMs and they have been fighting to get me paid. They owe me roughly 4 months in back rent (I'm finally expecting it this week). I'm not saying no to it, as I might be pushing for it on some of my current vacancies.
Realtor · Willow Grove, PA · Member since 2017 · 974 posts · 641 votes
2mo
Hi Isaac, nice to meet you here on BP! It's not a bad idea at all, the voucher portion of rent is reliable and paid on time by the housing authority, which is a real plus for cash flow. The catch is the unit has to pass a Section 8 inspection before move in and again at renewal, so budget time and money for that and expect stricter standards than a typical rental. I'd still screen the tenant's share of rent and background the same as any other applicant.
Real Estate Agent · Worcester, MA · Member since 2026 · 114 posts · 53 votes
2mo
FHA on a duplex or triplex is absolutely possible, and it's actually one of the most common ways people get started with house hacking.
One thing to be aware of though—the self-sufficiency test applies to 3–4 unit properties, not duplexes. This means 75% of the properties rent must be equal to or more than the mortgage payment, which can make qualifying a bit tougher. Duplexes don’t have that same requirement, so they’re generally easier to get into.
I am 28 years old, I work in the mortgage industry as an account executive for a Non-QM lender, and originate some investor purpose loans on the side. Obviously, this is where I found my interest in real estate investing and what got me thinking about this in the first place.
I am very knowledgeable on the financing side of stuff, but I specialize in only Non-QM (DSCR Included) so I have no knowledge of FHA or conventional type loans. I'd like to hear from someone who has taken the house hacking route for their first home.
How realistic is it to get a FHA loan on a duplex or triplex and find renters to cover the mortgage?
What are the things I should look for in a property that makes it a solid choice for this strategy?
Another side thought. I had an idea that getting a Duplex or triplex in a section 8 area so that the government takes care of most of the rents and I don't have to worry about chasing down payments. What are the risks associated with this. Good idea or bad?
Thanks in advance :)
It is very hard in the DFW area (and the vast majority of the country outside the upper midwest) to get a property where you will be truly live "free" in a 2-4 unit building. But, that is ok! When I house hacked long before it was called house hacking I lived a great neighborhood for 60% or so less then I would have other wise, as the tenant paid the rest. You have to live somewhere, so if you can do it much cheaper with a house hack then you other wise would you are still ahead, and of course have a turn key rental when you move out (at owner occupied rates).
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
2mo
@Isaac Gaetano, To piggyback off of what others have said — at current price points and mortgage rates, don't expect to cash flow on a house hack at 3.5% down unless you're getting aggressive with a co-living style setup. Though, from what I understand, Dallas isn't particularly friendly with that model, so keep that in mind. That said, to answer your question — yes, it is feasible to get FHA financing on a 2-4 unit property. As others have noted, on Section 8 specifically, you really need to familiarize yourself with the program and understand the inspection process before going that route.
If house hacking is genuinely of interest and you have realistic expectations, I'd also look beyond small multifamily. Single-family homes with an in-law suite or similar setup can work well and can be rented out as either STRs or LTRs. Most importantly right now — get really familair/comfortable with deal underwriting and modeling. Understand the structure of your debt service (should be pretty straightforward for you given your background) and all of your operating expenses, both while you're occupying the property and after you eventually move out.
For resources, check out "The House Hacking Strategy" by Craig Curelop. I'd also recommend "Real Estate by the Numbers" by J Scott and Dave Meyer — it doesn't focus on house hacking specifically, but it's great for building a solid foundation around understanding your numbers.
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
2mo
With your background on the DSCR and Non-QM side, the FHA house hack question is really more of a financing lane than a tax one, so I'd let others here answer the feasibility piece directly. Where I can add something useful is once you actually own it. On a duplex or triplex house hack, only the rented units get depreciation and expense deductions, the unit you live in doesn't qualify, so a clean square footage or unit-based split from day one matters more than people expect once you're filing.
On the Section 8 idea, tax wise that rent gets treated exactly like any other rental income, no special treatment either way, so the appeal there is really about payment reliability, not a tax angle. Worth knowing though, if you ever want to convert this into a straight rental down the line and 1031 out of it, the FHA occupancy requirement and how you documented the personal versus rental split during the house hack phase both affect how clean that future exchange looks.
I am 28 years old, I work in the mortgage industry as an account executive for a Non-QM lender, and originate some investor purpose loans on the side. Obviously, this is where I found my interest in real estate investing and what got me thinking about this in the first place.
I am very knowledgeable on the financing side of stuff, but I specialize in only Non-QM (DSCR Included) so I have no knowledge of FHA or conventional type loans. I'd like to hear from someone who has taken the house hacking route for their first home.
How realistic is it to get a FHA loan on a duplex or triplex and find renters to cover the mortgage?
What are the things I should look for in a property that makes it a solid choice for this strategy?
Another side thought. I had an idea that getting a Duplex or triplex in a section 8 area so that the government takes care of most of the rents and I don't have to worry about chasing down payments. What are the risks associated with this. Good idea or bad?
Thanks in advance :)
@Isaac Gaetano House hacking is a great way to get started, especially with a duplex or triplex if the numbers work. I'd focus less on whether tenants can cover 100% of the payment and more on buying in a location with strong rental demand, solid cash flow potential after you eventually move out, and reasonable maintenance costs. That gives you more flexibility as your portfolio grows.
It is completely possible to hack the house using the FHA loan, but the trick is that you should buy a house whose numbers work despite conservative assumptions about the rental income and operating expenses. In regard to the Section 8, it is able to deliver steady stream of income, however, every case needs individual consideration.
I am 28 years old, I work in the mortgage industry as an account executive for a Non-QM lender, and originate some investor purpose loans on the side. Obviously, this is where I found my interest in real estate investing and what got me thinking about this in the first place.
I am very knowledgeable on the financing side of stuff, but I specialize in only Non-QM (DSCR Included) so I have no knowledge of FHA or conventional type loans. I'd like to hear from someone who has taken the house hacking route for their first home.
How realistic is it to get a FHA loan on a duplex or triplex and find renters to cover the mortgage?
What are the things I should look for in a property that makes it a solid choice for this strategy?
Another side thought. I had an idea that getting a Duplex or triplex in a section 8 area so that the government takes care of most of the rents and I don't have to worry about chasing down payments. What are the risks associated with this. Good idea or bad?
Thanks in advance :)
If I was starting out again with what I know now, I'd look to acquire a 2-4 unit property with an FHA 3.5% low-down payment mortgage.
I'd also look into using an FHA 203k renovation loan, allowing me to buy something ugly, thus unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.
To maximize my cashflow and gain landlording experience, I'd do STR and MTR in the other units, as well as the other bedrooms in my unit.
Since most cities won’t allow basement rental units, I’d consider finishing the basement, just well enough for me to live down there (cities don’t care if owner chooses to live in basement), so I could rent out ALL the units/rooms.
I'd save all my cash and look to refi the property in 1-2 years out of the FHA mortgage, so I could use it again if necessary. Depending on how close I was to having 20% equity in the property and being able to avoid PMI, I'd consider using some of my cash to pay down the mortgage when I refinanced. Otherwise, I'd save my cash for the next acquisition.
I’d also be posting on every social media platform and telling everyone I knew that I was looking for more real estate deals. I’d aim for low downpayment land contracts and lease options.
After refinancing out of the FHA mortgage, I'd evaluate if I wanted to repeat the 2-4 unit FHA 203(k) process again or if I had the 20% down to target 5+ units.
While still living in the property, AFTER the refi out of the FHA mortgage, I'd also explore securing a HELOC to tap my equity for emergencies.
Real Estate Broker · UT · Member since 2024 · 7 posts · 2 votes
2mo
I believe the overall consensus from this strand, and what I also believe, is that FHA loans are great for house hacking, house hacking is a great strategy, and no way you are having your entire mortgage paid for. However, my take on Section 8 is that you will definitely find out why people live off governement assistance. You can find a couple diamonds in the rough in section 8, but from my experience in working as a PM on a massive scale and having numerous Section 8 clients - about 95% of them will be very hard on your property and not take care of it well. Good tenants are the exception, not the rule.
I am 28 years old, I work in the mortgage industry as an account executive for a Non-QM lender, and originate some investor purpose loans on the side. Obviously, this is where I found my interest in real estate investing and what got me thinking about this in the first place.
I am very knowledgeable on the financing side of stuff, but I specialize in only Non-QM (DSCR Included) so I have no knowledge of FHA or conventional type loans. I'd like to hear from someone who has taken the house hacking route for their first home.
How realistic is it to get a FHA loan on a duplex or triplex and find renters to cover the mortgage?
What are the things I should look for in a property that makes it a solid choice for this strategy?
Another side thought. I had an idea that getting a Duplex or triplex in a section 8 area so that the government takes care of most of the rents and I don't have to worry about chasing down payments. What are the risks associated with this. Good idea or bad?
Thanks in advance :)
Great question and welcome! House hacking with an FHA loan is still one of the best ways to get started if you're comfortable living in one unit. FHA allows you to buy up to a 4-unit property as long as you occupy one of the units, and plenty of people have used rental income from the other units to offset a large portion—or sometimes all—of the mortgage. The key is buying right. I'd focus on a property where the current or market rents make sense, major systems have plenty of life left, and you aren't relying on huge rent increases just to break even. As for Section 8, it's neither good nor bad on its own. The guaranteed rent is definitely a benefit, but you'll still need to screen tenants, stay on top of inspections, and understand the program requirements in your area. If you're flexible on where to invest, I'd also take a look at Columbus. It still has neighborhoods where duplexes and small multifamily properties can make the numbers work, with strong job growth, population growth, and landlord-friendly laws helping support long-term demand. Happy to connect and answer any questions you have!
I am 28 years old, I work in the mortgage industry as an account executive for a Non-QM lender, and originate some investor purpose loans on the side. Obviously, this is where I found my interest in real estate investing and what got me thinking about this in the first place.
I am very knowledgeable on the financing side of stuff, but I specialize in only Non-QM (DSCR Included) so I have no knowledge of FHA or conventional type loans. I'd like to hear from someone who has taken the house hacking route for their first home.
How realistic is it to get a FHA loan on a duplex or triplex and find renters to cover the mortgage?
What are the things I should look for in a property that makes it a solid choice for this strategy?
Another side thought. I had an idea that getting a Duplex or triplex in a section 8 area so that the government takes care of most of the rents and I don't have to worry about chasing down payments. What are the risks associated with this. Good idea or bad?
Thanks in advance :)
House hacking is one of the best ways to get started because you're building equity while someone else helps cover the mortgage. I'd focus less on whether it's FHA or conventional and more on buying in a location with strong rental demand where the numbers still work after expenses. Section 8 can be a solid option if you understand the program and screen tenants well, but don't buy solely because of the voucher. If you're open to investing out of state, I'd also take a hard look at Midwest markets, where duplexes and triplexes are often much more affordable, and the cash flow can be significantly stronger than what you'll find in higher-priced markets.
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
2mo
Hey Isaac,
Since you already have a strong financing background, you're honestly ahead of a lot of first-time investors. The biggest piece I'd add is that the financing is only one part of the equation. The property fundamentals and tenant demand are what will make or break the investment.
House hacking a duplex or triplex with FHA can be a great strategy. The key is looking beyond just whether the rents cover the mortgage today. I'd look at the neighborhood, future rental demand, maintenance costs, and whether you'd still want to own the property as a long-term rental after you move out.
On the Section 8 question, I don't think it's automatically a good or bad idea. There are plenty of successful investors who use it as part of their strategy, but you still need to properly screen tenants, maintain the property, and understand the local program requirements. Government-backed rent doesn't remove all landlord responsibilities.
My biggest advice would be to just get out there and start analyzing deals. At some point, you have to move from learning to doing. That's how I've approached real estate. I'm currently working on my first flip, and I had never done one before. I didn't feel completely ready, but I understood the fundamentals and found someone else in a similar position who was willing to take that calculated risk with me.
All the best! Feel free to reach out and connect with me - my DMs are always open!
Lender · Denver, CO · Member since 2017 · 156 posts · 69 votes
2mo
On FHA for a duplex or triplex or 4-plex: very doable, 3.5% down, but on 3-4 unit purchases FHA runs a self-sufficiency test the property's own market rent (not just the other units) has to cover the full PITI with a bit of cushion, appraiser confirms this on the appraisal. That trips up more buyers than the credit or DTI side does, so get that checked before you fall in love with a specific property. For unit criteria, look for separately metered utilities if possible, a unit mix where at least one unit's rent alone covers a meaningful chunk of the payment, and comps that don't require heroic rent growth assumptions to make sense.
On Section 8: guaranteed rent through the PHA is real, but payment standards are set by the local housing authority and don't always match market rent unit-by-unit, inspections can slow down move-ins, and turnover paperwork takes longer than a standard lease. It can work well in the right area, but I'd underwrite it at the PHA payment standard, not wishful market rent, before counting on it to make the self-sufficiency test pass.
Good luck! Smart move as an industry guy to get into building wealth through real estate. That has been a huge vehicle for my life.
Lender · Dallas, TX · Member since 2023 · 18 posts · 7 votes
6d
Isaac-
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. 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.
Real Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
2d
House hacking is how I got started too. I was making $35k a year as a social worker and bought my first property by converting the garage into a studio and renting out rooms. Ended up with 5 properties that way before I ever made real money in real estate.
The FHA angle you mentioned is right, but here's what most guides leave out: every FHA loan is legally assumable. So when you house hack into an FHA now, you're not just getting a low down payment. You're locking in a rate that a future buyer can take over. That matters a lot if rates stay elevated.
The math on a typical house hack in Colorado Springs right now: buy a duplex at $400k with 3.5% down ($14k), live in one side, rent the other for $1,200-1,400/month. Your PITI on a 6.5% FHA is around $2,500. You're effectively paying $1,100-1,300/month to own a $400k asset. Versus renting a comparable place for $1,600+.
You have to live somewhere anyway. The question is whether you're building equity while you do it.
One thing I'd add: if you can find a property with an existing assumable mortgage (there are a lot of 2020-2022 FHA loans still out there at 2.75-3.5%), you can house hack AND inherit a rate that drops your payment another $500-700/month. The equity gap is the hurdle, but on a duplex that's been owned a few years it's often manageable with seller financing for the gap.
DM me if you want help running numbers on a specific property.
