Welcome to Eugenethings.com, where we talk about all things related to real estate. Today, we're going to dive into the financial details of house hacking, specifically using a duplex as an example.

For those that are unfamiliar, house hacking is the act of buying a multifamily property (such as a duplex or triplex) and living in one unit while renting out the others. By doing so, you can use the rental income to help cover your mortgage and other expenses related to owning a home.

Let's say you buy a duplex for $400,000, with a down payment of $80,000 (20% of the purchase price). Your monthly mortgage payment (including principal, interest, taxes, and insurance) comes out to $2,000. If you rent out the other unit for $1,500 per month, you'll be able to use that rental income to help cover your mortgage payment, as well as other expenses such as maintenance and repairs.

Now let's say you also have $500 in monthly expenses for utilities, insurance, and other costs associated with owning a home. By using the rental income from the other unit, you'll be able to offset those expenses and potentially even come out ahead each month.

Of course, there are some risks and challenges to consider when house hacking. It requires a certain level of dedication and discipline, as you'll be responsible for maintaining the property, finding and vetting tenants, and handling any repairs or issues that may arise. It's also important to consider the location of the property and whether you'll be able to attract reliable renters.

That being said, house hacking can be a great way to get started in real estate investing and have a hands-on approach to property management. If you're considering it as an option, be sure to do your homework and create a budget to ensure you can afford the mortgage and other expenses.

In conclusion, house hacking can be a financially sound strategy for those looking to get into real estate investing. By using rental income to help cover your mortgage and other expenses, you can potentially come out ahead each month and build equity in your property. Just be sure to carefully consider the risks and challenges before diving in. Thank you for reading, and be sure to check back for more real estate tips on Eugenethings.com.

If you would like learn about other ways you can use house hacking to achieve financial freedom, check out Rocket Moneys blog here.