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IQInvestment StrategyBest for Beginners

House Hack

House hacking means purchasing a property, living in part of it, and renting out the rest to offset your mortgage—or eliminate it entirely. It's the lowest-barrier entry into real estate investing, allowing you to build wealth while slashing your biggest expense: housing.

IQ's Take

"If I could give one piece of advice to new investors, it's this: house hack first. Low down payment, owner-occupant rates, built-in landlord education, and you're building wealth instead of paying someone else's mortgage. InvestIQ shows you exactly what each property could save—or earn—you."

Your Unit
$0/mo
Rental Unit
$1,500/mo
Annual Housing Savings
$18,000+

Live Free, Build Wealth

Most Americans spend 25-35% of their income on housing. House hackers redirect that expense into equity and cash flow. Imagine putting $1,500/month toward your future instead of a landlord's pocket. After one year, move out and keep the property as a rental—or repeat with another house hack. Many successful investors built their entire portfolios starting with a single house hack.

3.5%
Down Payment (FHA)
Lower
Interest Rates
Learn
By Doing
Build
Equity Fast
IQHouse Hack Options

Choose Your Style

Multi-Family (2-4 Units)

Buy a duplex, triplex, or fourplex. Live in one unit, rent the others. FHA-eligible with just 3.5% down. Maximum rental income potential.

3.5% down
2-3 rental units
Best cash flow

Room Rental

Buy a single-family home with extra bedrooms. Rent rooms to tenants while living in the home. Lower barrier, simpler management.

3-5% down
Shared spaces
Flexible setup

ADU / In-Law Suite

Property with separate accessory dwelling unit, basement apartment, or garage conversion. Maximum privacy for you and tenant.

Separate entrance
Full privacy
Premium rent
IQ

InvestIQ Calculates Your House Hack Savings

I analyze rental potential, mortgage costs, and show you exactly how much you'll save—or earn—each month. See your true housing cost before you buy.

IQIQ's Playbook

Your Guide to Success

1

Understand Your Financing Options

Owner-occupant loans offer the best terms: 3.5% down with FHA, 0% with VA, 3% with conventional. You must live in the property as your primary residence for at least one year. Multi-family up to 4 units qualifies for these programs.

IQ
IQ's Pro Tip

FHA allows 75% of rental income to count toward your debt-to-income ratio. This can significantly increase your buying power for multi-family properties.

2

Choose the Right House Hack Style

Multi-family offers the highest return but requires managing tenant neighbors. Room rentals are simpler but involve shared spaces. ADUs provide privacy but cost more. Match the strategy to your lifestyle and comfort level.

IQ
IQ's Pro Tip

Duplexes are the sweet spot for most new investors—separate units mean privacy, but only one tenant relationship to manage. Start here if you're unsure.

3

Run the Numbers Before Buying

Calculate your true housing cost after rental income. Include mortgage, taxes, insurance, maintenance reserves, and vacancy allowance. The goal is living for free—or getting paid to live there.

IQ
IQ's Pro Tip

A good house hack reduces your housing cost by at least 50%. A great one eliminates it entirely. InvestIQ shows you both scenarios instantly.

4

Set Clear Boundaries with Tenants

Living near tenants requires clear boundaries. Use proper leases, maintain landlord professionalism, and establish rules about shared spaces, quiet hours, and communication from day one.

IQ
IQ's Pro Tip

Screen tenants as rigorously as you would for any rental. Don't skip steps because you'll be neighbors—that makes screening MORE important, not less.

5

Understand Tax Implications

House hacking creates unique tax situations. You can deduct the rental portion of expenses but not the owner-occupied portion. Keep meticulous records and work with a CPA who understands real estate.

IQ
IQ's Pro Tip

Depreciation on the rental portion is a powerful tax benefit. A $400K duplex might generate $7,000+ in annual paper losses that offset your rental income.

6

Plan Your Exit—Then Repeat

After one year, you can move out and keep the property as a full rental—or house hack again. Many investors repeat this strategy every 1-2 years, building a portfolio of cash-flowing rentals with minimal capital.

IQ
IQ's Pro Tip

The "serial house hacker" strategy: buy a duplex, live in it one year, move to the next. After five years, you have five properties with minimal money down.

IQ

Ready to Start Your House Hack?

Point your camera at any property and get instant House Hack analysis. I'll show you exactly how much you could save—or earn.

IQAnalyze a Property Now