For many people, buying a home feels difficult enough.
Buying an investment property? That sounds completely out of reach.
But there’s a strategy that allows some buyers to do both at the same time — and it’s becoming increasingly popular in today’s market.
It’s called House Hacking.
What Is House Hacking?
House hacking is when you purchase a 2–4 unit property, live in one unit as your primary residence, and rent out the others.
Examples:
- Duplex = live in one side, rent the other
- Triplex = live in one unit, rent two
- Fourplex = live in one unit, rent three
The rental income from the additional units can help offset your mortgage payment and reduce your monthly housing costs.
For some buyers, it becomes their first step into real estate investing while still purchasing a primary residence.
Why More Buyers Are Talking About It in 2026
Affordability remains a challenge in many California markets.
House hacking gives buyers another strategy to explore.
Instead of buying a single-family home with no rental income, some buyers are considering multi-unit properties where tenants help contribute toward the monthly payment.
And recently, this strategy became more accessible for many buyers.
The 5% Down Opportunity
Fannie Mae recently expanded financing options for certain owner-occupied 2–4 unit properties.
That means some qualified buyers may now be able to purchase:
- Duplexes
- Triplexes
- Fourplexes
…with as little as 5% down.
Historically, many buyers assumed they needed massive down payments to purchase multi-unit properties.
That’s not always the case anymore.
A Simple Example
Imagine purchasing a duplex:
- You live in one unit
- Your tenant rents the other
That rental income may help offset:
- Mortgage payment
- Taxes
- Insurance
- Other housing costs
Instead of your housing payment working against you, part of the property may help support itself.
Is House Hacking Right for Everyone?
No.
Being a landlord comes with responsibility.
You’re sharing a property with tenants, handling maintenance issues, and managing the property more actively than a traditional single-family home.
But for buyers comfortable with that tradeoff, it can be a powerful long-term wealth-building strategy.
Why Some Buyers Like This Strategy
House hacking may offer:
- Lower effective housing costs
- Long-term equity growth
- Rental income potential
- Entry into real estate investing earlier than expected
- Ability to keep the property later as a full investment
For many people, their first investment property is actually the home they started in.
The Bottom Line
You don’t necessarily need a massive down payment or a large real estate portfolio to begin building wealth through real estate.
For the right buyer, house hacking can create a path toward both homeownership and investing at the same time.
If you’d like to explore what the numbers could look like for a duplex, triplex, or fourplex purchase, I’m happy to help walk you through it.
No pressure. Just strategy.
Garry McDonald
Loan Officer | Tried & True Home Loans
(949) 534-6686 | gmcdonald@triedandtruehomeloans.com
DRE# 01781703 | NMLS# 1922072