Is House hacking still best option to sell Denver multi family?
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Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
2moNo house hackers are not done at all, but I doubt your building makes sense: with a monthly payment of about 8k and 4.5k in income someone would be paying realistically (with some expenses) 5k for the privilege to live in an apartment. Seems like a stretch.
For perspective, you can buy a very nice duplex in Milwaukee for 400k-ish that brings in almost 4k in rent.
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- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes2mo
No house hackers are not done at all, but I doubt your building makes sense: with a monthly payment of about 8k and 4.5k in income someone would be paying realistically (with some expenses) 5k for the privilege to live in an apartment. Seems like a stretch.
For perspective, you can buy a very nice duplex in Milwaukee for 400k-ish that brings in almost 4k in rent.
Thanks for the interesting perspective. I was asking about Denver not Milwaukee which brings in an entirely different type of buyer pool. Of course it is less expensive to live in Milwaukee. The math may very well make sense for someone who is relocating from New York, California, and Texas, which is what has been happening in the Denver market. It all depends on their down payment and their income and what their goals are, so a broad sweeping comment like this does not actually address the math at hand. So the question remains—are out-of-state house hackers still relocating to Denver, and are our local Denver house hackers still actively looking?
Hi @DK S., welcome to BP!
I don’t think house hackers are done — but I do think the buyer pool has become much more selective.A stabilized 4-plex with one unit available for an owner-occupant can still be a compelling house-hack opportunity, especially when the buyer can use the other three units’ rental income to offset their housing costs.
At ~$950K, though, the numbers are going to matter a lot. Today’s buyer is likely looking closely at the purchase price, financing terms, projected rents, taxes, insurance, and the amount of cash needed to close.
For an out-of-state buyer relocating to Denver, the opportunity is probably less about “house hacking” being dead and more about whether the property provides a clear path to reducing their personal housing expense while building equity.
If the property can demonstrate strong rent coverage and a realistic owner-occupant financing strategy, I’d still expect qualified house hackers to take a serious look.
The days of buying almost anything because “it’s a house hack” may be over — but a well-priced, stabilized 4-unit in a desirable location with one unit available to the owner is a very different proposition.
I'd be curious to see the numbers on this one.
- 2moDan GuentherBusiness MemberReal Estate Agent · Longmont, CO · Member since 2019 · 548 posts · 271 votes
Hey @DK S., I’m an investor and agent here in the Denver and Northern Colorado markets with over 5 years of experience in the house hacking and rent by the room game, and I actually think there’s another buyer pool starting to emerge for properties like this beyond the traditional house hacker.
I’ve had a lot of success with co living and renting by the room, and I’m seeing more traditional investors look at that model as affordability continues to get tougher. Rather than looking at this as an owner occupant house hack, I’d be interested in underwriting it as more of a traditional non owner occupant investment, potentially using a co living model to increase the income.
A property that might be tough to make pencil as a conventional 4 plex at today’s rates can sometimes look pretty different when you start underwriting around total bedroom count and achievable room rents.
I’d be curious to learn more about this one. How many total bedrooms and bathrooms are there across the four units, what are the current rents by unit, and what does the vacant unit look like? I’d also be curious about utilities and whether there’s any opportunity to add bedrooms within the existing footprint.
That being said, house hacking is still alive and well in the Denver Metro but not so much at price points over the $600K range.
Ten Ridge Realty LLC514 Reviews Thanks for the insights! To clarify the layout: this is a classic 4-plex where each individual unit is completely self-contained with its own private kitchen and bathroom, so it is probably best for standard multi-family tenancy (and already has 3 of 4 leased as such through 2027) rather than a co-living or rooming-house model?? Since my basic platform tier limits outbound direct messages, please send me a Colleague Request here on the platform and I can privately share more numbers if interested. Thanks!
- Real Estate Agent · Member since 2026 · 13 posts · 0 votes1w
DK, I think there's still a market for house hacking in Denver, but buyers are definitely looking more closely at the numbers today.
One encouraging change is the increased negotiating room. REcolorado reported over 13,500 active Denver Metro listings in September, with pending sales down 13% year over year. For investors, that can create opportunities to negotiate price and terms, although higher financing costs mean the cash flow still needs to work.
Your fourplex has an interesting advantage with three income-producing units and a fourth available for an owner-occupant. I also think it's worth considering how you position it to traditional investors versus house hackers, rather than relying on just one buyer pool.
I'm a Denver-area Realtor with Compass. Have you made any progress with the property since August, or are you still considering your marketing options?
>Your fourplex has an interesting advantage with three income-producing units and a fourth available for an owner-occupant.
I question how you call these income producing? Maybe at 0% LTV the units may be income producing but the ROI would be horrendous. Even at 50% LTV, no experienced underwriting would have this as income producing at purchase when including vacancy and sustained expenses (I include everything in sustained expenses such as maintenance/cap ex, PITI, pm, bookkeeping/tax prep, asset protection, etc).
It is why @Marcus Auerbach reply was relevant contrary to the OP’s opinion otherwise. In any market, the house hacker would be paying significantly more to live there than they would to rent there after accounting for sustained expenses and vacancy. This eliminates the bulk of house hackers who want to pay less to live than if they were renting.
Note, this is not to suggest I am against a house hacker taking a long term position on this. However, such house hackers are a small percentage. Most house hackers do not want to pay 5% to 20% (this purchase does not qualify for fha due to sustainability requirements on quads) down and then pay more than the rent each month for the privilege of house hacking. A small enlightened subset of house hackers may be willing to take the near term hit for long term benefits, but the challenges of financing on this purchase make this a near unicorn buyer.
I believe the likely buyer is a non house hacking RE investor with patience that believes in that location/market.
Good luck
- 1dRyan ThomsonBusiness MemberReal Estate Agent · Colorado Springs, CO · Member since 2018 · 1k+ posts · 1k+ votes
House hacking is still the best first move in Denver real estate. The "is it still worth it" framing misses the point: you have to live somewhere anyway.
I started on a $35k social worker salary. Bought a duplex, converted the garage into a studio, house-hacked my way to 5 properties. Most of my current financial position traces back to those early moves.
The question for your Denver multi-family isn't whether house hackers want it. It's whether the numbers pencil at current rates.
This is where an assumable loan changes the conversation entirely. If your property has an FHA or VA loan from 2020-2022, that rate is assumable. A buyer taking over a 3.25% rate instead of financing new at 7% saves over $1,000/month on the same property. That makes your deal stand out from every comparable listing at current pricing.
If your loan is assumable, market it that way aggressively. That rate is a real asset.
If it isn't, price it to reflect what the house hack math actually looks like at today's rates. A well-structured Denver 2-4 unit where a buyer can rent by room or use an ADU can still get housing cost near zero. That story sells.
Don't wait for rates to drop to list or buy. Cost-average in, build equity, and let time do the work. That's always been the play with multi-family.
DM me if you want to run the specific numbers on your property.
The Assumable Guy544 Reviews There is not an assumable loan. And making numbers work with current rents and current interest rates can be difficult. However it is called investing. Meaning you may have to wait a little before it is fully paying your desired return. I sometimes find it interesting that in today’s market people want a cash flow of 6-7% return, and turnkey, and the ease of fully rented on day one. It does those things for me. But it certainly didn’t do it on day one. I personally would pay a premium for the turnkey fully rented aspect even if the numbers weren’t returning my ultimate goal just yet. Because I don’t like the surprises of renovation challenges and unforeseen expenses or difficult to rent properties. But that is me. I know what I have and someone will most certainly see as an amazing opportunity. It would be a really great opportunity for a patient house hacker or a 1031 exchange investor.
I already stated my opinion that finding a house hacker that would be interested seems unlikely but thought I would present numbers using the 50% rule. The unit rent is basically $1525; 4 units is $6100/month.
95% LTV cost has rate of ~7.5% on a quad. P&i $6310/month + $3050 (50% rule). Total $9360/month.
$9360 - $4572 =$4,788.00
The house hacker would be paying $4788/month for a unit that they could rent for $1525/month. They would be paying $3263/month extra for the privilege of house hacking. It would be a rare house hacker that would pay $47,500 (5% of $950k) to purchase then pay over 3x the rent for the privilege of house hacking.
If you go to 90% LTV, the upfront costs double to $95k, but P&i drops to $5978 so owner occupant would be down to a projected cost of $4456 or $2931/month more than renting.
You may know what you have but I know the numbers. Finding this house hacker will be extremely challenging.
Again I am not stating it could not work for the patient house hacker. What I am saying is this is not the bulk of house hackers. You will be selling to a non OO investor that is bullish on the location.
Good luck
- Real Estate Agent · Member since 2026 · 13 posts · 0 votes18h
Dan, fair point, and I should have been more precise. By income-producing, I meant the three occupied units generate rental income, not necessarily positive cash flow after financing, vacancies, reserves and operating expenses. At the price and rental income DK shared, the numbers really need to work for the individual buyer, and a traditional investor may be the better fit. DK, with no assumable loan available, are you now leaning more toward marketing to investors rather than house hackers? I'm a Denver-area Realtor; AI-assisted draft reviewed by me.
I asked the question in August. And I think the answer is yes they are still out there but the numbers have made very challenging in the Denver market. I was trying to determine if better to just rent out last unit because house hacking not very viable to a turnkey investment in Denver right now. (Unless one wants to drastically reduce price). So more likely a traditional seasoned investor will be the market. 1099 exchange etc.
- 18hRay WilliamsBusiness MemberLender · Denver, CO · Member since 2017 · 173 posts · 78 votes
DK,
We are in Denver also. The financing side explains a lot of what you're seeing, because it decides which house hackers can actually buy a 4-plex at $950k. In the past I have seen FHA buyers challenged w/ the cost of those properties in Denver and the self-sufficiency test.
FHA is what most first-time house hackers use, and on 3 or 4 units it comes with the self-sufficiency test. The appraiser's market rent for all four units, including the one the buyer lives in, gets cut to 75 percent, and that number has to cover the full payment. Using 6.5 percent just for round numbers, 3.5 percent down on $950k lands around $7,100 a month once you add FHA mortgage insurance, taxes, and insurance. To pass, gross rents would need to be roughly $9,500 a month. You're at $4,572 on three units, so even with a strong number on the fourth, an FHA buyer likely can't get approved at that price no matter how much they want it.
That leaves two smaller buyer pools. Conventional now allows as little as 5 percent down on an owner-occupied 2 to 4 unit with no self-sufficiency test, but the buyer needs the income to carry most of the payment on their own DTI. VA buyers can go zero down with no self-sufficiency test either, though lenders will want reserves and will discount the rents.
Two things working in your favor: leases running through summer 2027 help because underwriters can use real leases instead of estimates, and having a lender run the FHA math before you set the price will tell you whether you're really marketing to house hackers or to investors. Denver is tricky given value of homes, and then the comparable rent on say those 3 units. So would depend on the buyer's end goal. I have a client who still owns in that area, but her cost basis was so low it is a no brainer for her. Very familiar w your area and have invested in and advised on it for over 20Y.
Well my thought is I will probably just rent it out. It seems like house hackers right now are mostly out. Nobody seems to look at real estate investing like they did 20 years ago. They all want it to be paying them a salary, AND live for free on day one. Back in the day we used to look at it as we have people helping buy this great asset that will be worth more someday. And in time it would be cash flowing. Which it in fact did for me. So did your client sell or hold? I probably need a 1031 person looking to roll. Or a family looking to put their newly winged young adult moving into Denver where they’d rather pay themselves than a landlord. Gen-vesting I call it.
I do disagree with your perspective on 20 years ago. In 2006 and every other date since data has been tracked per 2 studies comparing cost of ownership versus renting, the rent to price ratio was much better 20 years ago than today. Both these two studies state rent to property value ratio has never been worse than today.
The property purchased in 2006 statistically had far better cash flow than today. The time between 2010 and 2022 were some of the best cash flow ever. 2026 is, per the two studies, likely the worse cash flow ever.
RE Investors can support negative cash flow if they believe it will produce a good return with patience. Stabilized properties virtually universally require patience to produce good returns.
Most house hackers are not in a position to absorb the negative cash flow and be that patient.
Best wishes
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