It's no secret - finding a traditional single-family rental that actually cash flows is nearly impossible with 20% down right now...

But there's one strategy I think more people should really consider: house hacking.

I'm talking about buying a 3–4 bedroom home, living in one bedroom, and renting out the others. IMO it is the #1 way to get started in a low to no risk environment. You can snowball savings, turn your biggest liability (your home) into your first real asset, AND learn about real estate investing first hand.

Here's a hypothetical example:

Say you buy a four-bedroom house with a $3,000 monthly mortgage payment, including taxes and insurance.

You rent out 3 bedrooms for $800 each, bringing in $2,400/month.

Suddenly, your personal housing expense drops to $600/month before utilities, maintenance, and other costs. Meanwhile, you're building equity in a property you own.

And since it's your primary residence, you may qualify for financing with a much smaller down payment than you'd need for an investment property. Say 3.5% down vs the typical 20%.

Here's where it gets interesting.

When you're ready to move out, you could rent the entire house to one family (depending on the numbers and maybe a smart refinance) OR continue renting by the room (which will net much higher and should be stabilized by that point)

At that point, you could generate $3,400/month in gross rental income. That's potentially more than you'd collect renting the home traditionally. Or at least break even with only 3.5% down!!!

Of course, there are trade-offs: more tenant turnover, additional management, vacancies, and local occupancy and HOA restrictions to consider. This is NOT the strategy for out of state investors or families with kids (although duplex style house hacking is the OG and definitely an option for some)

I put this here because I don't see near enough people interested in doing this in 2026. I got started this way and have zero regrets. Anyone ese have a similar experience?