House hacking is the ultimate wealth-building strategy for first-time buyers. By generating rental income from your primary residence, you can live for free (or close to it) while building equity.
What Is House Hacking?
House hacking means buying a property and renting out portions to generate income that covers your mortgage and expenses. Common strategies include:
- Renting out basement apartments
- Housemate situations (renting spare rooms)
- Duplex living (rent one unit, live in the other)
- Short-term rentals (where legal)
The Financial Impact
Example: Buy a $800K duplex in Hamilton with 10% down ($80K). Live in one unit, rent the other for $2,500/month. Your mortgage payment is approximately $4,500/month. After rental income, you're paying just $2,000/month for housing — less than renting a one-bedroom apartment.
Financing House Hacks
Owner-occupied properties qualify for:
- Minimum 5% down payment (vs. 20% for pure investments)
- Best mortgage rates
- First-time buyer incentives
Want to explore house hacking? Call Sam at 647-784-7924 to find suitable properties.