I’m new to House Hacking but excited to start!

New to Real Estate · Member since 2026 · 4 posts · 1 vote

Hey Christian here I’m 28 & new to realtor investing. I can’t wait to start but scared at the same time because I only make 42k annually right now. So it feels impossible to start so I wondering if anyone had any ideas or suggestions on where I should possibly look for a multi family home around 175- 200,000?

1 Reply

529 views

Most Popular Reply

Vaibhav PuranikPro Member

Member since 2025 · 93 posts · 52 votes

Look in your backyard! Your own city or neighborhood. The advantage with that is you might be able to manage it yourself and get good experience as well as save some money. If homes are beyond that range in your area, then only you should think about investing n other areas, especially when you are starting out.

[email protected]

1 Reply

See this reply in the discussion

12 Replies

Jump to latestLatest

Sort by

Vaibhav PuranikPro Member
Member since 2025 · 93 posts · 52 votes
1w
Look in your backyard! Your own city or neighborhood. The advantage with that is you might be able to manage it yourself and get good experience as well as save some money. If homes are beyond that range in your area, then only you should think about investing n other areas, especially when you are starting out.
[email protected]
1 Reply
- Pradip Dhital
  Investor · Member since 2026 · 10 posts · 6 votes
  1w
  Hi Vaibhav,
  I was just listening your podcast in Real Estate Rookie channel. Loved your stories about accidental investments. Specially the one you knocked on the door three times and the whole story. Good meeting you here
  0 Reply
Harrison C.
Member since 2017 · 58 posts · 27 votes
1w
Christian, on 42k the thing that changes the math is renting by the bedroom, not finding a cheaper multifamily.
a regular 3 or 4 bedroom house. you live in one room and rent the others to roommates, each person on their own lease with their own rent. thats how I run mine. my rooms go $600 to $775 each. three rooms at those rents is $1,800 to $2,300 a month. room rents near you may be different so check first.
before you offer on anything, look up what single rooms near that house list for on facebook marketplace, times the rooms you'd rent, and put that next to the full payment with taxes and insurance.
the catch is you furnish it, the utilities stay in your name, and you live with your tenants. and ask a lender early what income they will count, I cant tell you that part.
what area are you looking in?
0 Reply
Hossein Sharifi
Investor · Member since 2023 · 115 posts · 55 votes
1w
At $42k, house hacking only works if the rooms clear the payment, not if whole-house rent looks okay on a blog. Before you tour: ask a lender what roommate income they'll count, price real room rents nearby rather than Zillow whole-home rent, and underwrite PITI, insurance, the utilities you'll keep in your name, and one empty room. Keep 3–6 months of the full payment in cash. Excitement is fine; the spreadsheet just has to work at today's rate with a room vacant.
0 Reply
Joey BanasihanPro Member
Investor · Boise, ID · Member since 2019 · 238 posts · 189 votes
1w
Hey @Christian Johnson
[email protected]
0 Reply
- Joey BanasihanPro Member
  Investor · Boise, ID · Member since 2019 · 238 posts · 189 votes
  1w
  Haha - not sure what happened but apparantly when I tagged you in this post, everything else afterwards "was included in the tag" and never showed up as actual text. Sorry about that!
  [email protected]
  0 Reply
Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
1w
Have you looked around your market to see what 2-4 units are going for? I'd start nearby and house hack. Also focus on increasing your income, that is a big lever in getting started.
0 Reply
Austin GoetzBusiness Member
Lender · Minneapolis, MN · Member since 2026 · 33 posts · 10 votes
1w
House hacking might be the best option for you to start. If the market allows, buying a duplex, living in one of the units and then renting out the other allows for you to keep your initial cost to get into the home lower and benefit by using rental income from the other unit as an additional income qualifier. Lowest down payment option is 3.5% through an FHA loan. FHA loans also allow you to receive up to 6% of the purchase price in seller paid closing costs. This is a big piece to consider especially if funds to purchase are more limited right now.
If you have any questions or want to talk through the financing side, feel free to reach out.
[email protected]952-797-2007
Magnolia Bank
Website View Page
0 Reply
Nyisha Walton
Lender · Houston, TX · Member since 2026 · 40 posts · 9 votes
6d
Hi Christian, it is more doable than it feels. FHA allows 3.5% down on a 2 to 4 unit you live in, and part of the other units' rent can count toward qualifying. North Carolina also has down payment assistance. Our team is licensed in NC and can show you what you qualify for.
0 Reply
Gregory AcsPro Member
Lender · MD · Member since 2025 · 226 posts · 87 votes
6d
Hey Christian, house hacking could be a good way to get started, even with a $42K income. I'd first look into FHA financing and see whether eligible rental income from a duplex or other multifamily property could help with qualification.
Before choosing an area, I'd recommend getting a clear picture of your buying power and estimated monthly payments. Have you spoken with a lender yet, or are you still figuring out what you can afford?
0 Reply
Dan NelsonBusiness Member
Real Estate Broker · Chicago and Kansas City · Member since 2016 · 101 posts · 93 votes
2d
Being nervous and starting anyway is how most of us began. Making $42k does not rule you out. On a small multifamily you live in, lenders can count part of the other unit's rent when you qualify, and that rent helps pay the mortgage every month.

Three things I would do this month:

1. Talk to a lender who closes 2 to 4 unit loans every week. Ask what you qualify for with the other unit's rent counted. On a 2 unit you live in, FHA can go as low as 3.5% down, and a conventional loan can go to 5%. Have them run both side by side.

2. Look up down payment help where you live. Many cities and states offer grants or forgivable loans for first time buyers, and some cover 2 to 4 unit buildings.

3. Pick one or two neighborhoods near you and learn them well: what duplexes sell for and what each unit rents for. Ten minutes a night on listing sites gets you there fast.

You do not need to know everything before you start. You need a lender's number and a target area. You're closer than you think. If you do not see properties near you that fit your criteria, feel free to reach out and I am happy to suggest places that work.
[email protected]773-295-1751 Podcast Guest on Show 2 “Slam Dunk” Small Multifamily Deals in 2023 (and Where to Find Them)
Dan Loves Houses4.980 Reviews
Website View Page
0 Reply
Thomas Cruz Fragoza
Member since 2020 · 8 posts · 1 vote
2d
@Christian Johnson, $42k isn't impossible. It just sets the math, so here it is in rough numbers.
$42k a year is $3,500 a month gross. Many lenders cap your total debt at roughly 43–50% of gross income, so about $1,500–1,750 a month for housing plus any car or card payments. On a 2–4 unit you live in, they'll usually count 75% of the other units' rent as extra income. A duplex where the other side rents for $1,200 adds about $900 a month to what you qualify on. That's why a duplex at $175–200k is realistic and a single-family home at that price is harder.
At 3.5–5% down, plan on roughly $7–10k down plus closing costs (ask for seller credits), and try to keep 3 months of the full payment in the bank after closing. That's the money that saves you if the tenant leaves or the water heater dies.
The real test is whether you can cover the whole payment for a couple of months with no tenant. If you can, you can afford it. If not, the next step is building that cushion.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.