House Hack / Owner-Occupied
Buy a 2-4 unit, live in one, rent the rest — see how much your tenants cover
Property
$
Owner-occupied loans allow 2-4 units.
Unit Rents (Monthly)
Market rent for the unit you'll live in. Used to calculate income after you move out and to estimate your housing savings.
$
Average monthly rent for each unit you'll rent out.
$
You'll rent out 2 units = $2,600/mo in rental income while living there.
Owner-Occupied Financing
FHA: 3.5%, Conventional: 5-20%. Owner-occupied gets much better terms than investment property.
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%
yr
Mortgage insurance required with < 20% down. FHA MIP is typically 0.55% of loan/year.
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%
Operating Expenses
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$
$
% of gross rent. 5-10% typical.
%
0% if self-managing while living there. 8-10% if hiring out.
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%
Growth & Timeline
%/yr
%/yr
%/yr
FHA requires 1 year minimum occupancy. After this, you move out and rent all units.
yr
yr
Annual Cash Flow
Transition from owner-occupied to fully rented in year 3
Equity Growth
Your Monthly Housing Cost
$497/mo
vs. $1,400/mo renting — you save $903/mo
While You Live There
Monthly Rental Income$2,600
Monthly Mortgage$2,157
Monthly Expenses (total)$2,967
Mortgage Covered114.5%
After You Move Out
Monthly Full Rent$4,000
Monthly Cash Flow$763
Deal Summary
Down Payment$17,500
Closing Costs$10,500
Total Cash Needed$28,000
Equity at Sale (Yr 10)$153,819
Total Cash Flow$118,457
Total Return on Cash872.4%
Avg Annual Return87.2%
Housing Savings vs Renting$22,908