Buying A Duplex And Renting Half -

The Ultimate Guide to House Hacking: Buying a Duplex and Renting Half

: While your tenant helps pay down the principal, you are building 100% of the equity in the property. buying a duplex and renting half

Buying a duplex and living in one unit while renting out the other—often called —is one of the most effective ways for first-time homebuyers to enter the real estate market . It’s a hybrid strategy that offers the security of a primary residence with the wealth-building power of an investment property. The Big Win: Financial Benefits The Ultimate Guide to House Hacking: Buying a

: Many owners find that rental income covers 50% to 80% of their monthly mortgage payment, making homeownership significantly more affordable. The Big Win: Financial Benefits : Many owners

: You can typically deduct the mortgage interest and property taxes for your half, while the expenses for the tenant’s side (repairs, utilities, and depreciation) are often tax-deductible as business expenses. The Reality Check: Being a Landlord Next Door

: Because you intend to live in the property, you can qualify for owner-occupied loans like FHA (3.5% down) or VA loans (0% down), which have much lower down payment requirements than traditional investment loans (typically 20-25%).

The primary draw of a duplex is the ability to .