Enter your mortgage payment, rental income from spare rooms or units, and out-of-pocket costs to see your effective housing cost and return on investment from house hacking.
| 1 spare room | $2,400 | $800 | $1,600/mo | 8% |
| 2 spare rooms | $2,400 | $1,500 | $900/mo | 18% |
| Duplex (1 unit) | $2,400 | $1,800 | $600/mo | 24% |
| Duplex (full offset) | $2,400 | $2,400 | $0/mo | 30% |
| Triplex (2 units) | $3,000 | $3,600 | -$600/mo profit | 36% |
House hacking creates wealth through four simultaneous channels: (1) Reduced or eliminated housing cost — money you'd spend on rent instead goes to savings or investments. (2) Mortgage paydown — your tenants are effectively paying your mortgage, building your equity with their money. (3) Appreciation — residential real estate averages 3-5% annual appreciation. (4) Tax benefits — you can deduct the rental portion of mortgage interest, property taxes, insurance, depreciation, and repairs. A typical house hack on a duplex can generate a 20-30% cash-on-cash return — far exceeding stock market averages — while giving you a free place to live.
