Talk to any broker, and many will say they began building wealth by “house hacking,” or purchasing a small multi-family property and living in one unit while renting out the others. “That’s how I started,” says Ishay Grinberg, CEO and founder of Rental Beast.
In 2004, Grinberg purchased a three-family unit in South Boston. His family resided on the third floor and rented out the first and second floor apartments. Five years later, they were able to buy a single-family home. Since then, Grinberg has rented the South Boston multi-family home and purchased many additional investment properties. “My goal is to have 300 doors,” he says.
Right now, purchasing a single-family home feels out of reach for many first-time buyers due to affordability and high interest rates. We could see house hacking become more common as a market solution.
According to the NAR’s 2025 Profile of Home Buyers and Sellers, the median first-time buyer was 40, an all-time high. Only about 21% of homes were purchased by first-time buyers, the lowest share on record.
“Everyone talks about the 'American dream,' and it is harder to achieve,” says Grinberg. “Becoming a homeowner in more expensive markets is unaffordable. Between the down payment and the true cost of homeownership, it is very difficult to break through. A lot of young people are compromising. They buy a more modest house and rent it out and start building equity. The American dream is not dead; it has just shifted to a different mentality and mindset, one that’s more entrepreneurial.”
Tampa Bay, Florida-based Barrett Henry, broker associate at The NOW Team at RE/MAX Collective, says he expects to see more buyers transforming ADUs into Airbnb rentals and renting out rooms in single-family homes.
“I am working with a guy now whose goal is to buy a four-bedroom house and rent out two bedrooms,” he says.
As the potential for more buyers interested in house hacking grows, brokers need to be ready to cater to this often-untapped niche, as do agents.
Marketing
Reaching would-be house hackers begins with education. Many clients intend to buy a primary residence and haven’t considered house hacking as an alternative. Or they might have thought about it but felt intimidated.
Barry Whittington, managing broker at RE/MAX First in Oklahoma City, Oklahoma says he’s advised all four of his adult children to buy a duplex.
“None of them has taken me up on that,” he says. “It is a very long-term position to take, and 20-year-olds don’t really think long-term. They’ve never owned a home and suddenly they’re in the rental business. It’s a scary leap of faith.”
That’s why education and marketing strategies at the brokerage level can be so helpful. The consumer needs to understand what they’re getting into. Brokerages are prime community hubs that can offer the information that consumers need to become educated in house hacking. Options like the following position your brokerage as the community expert and the go-to for consumers:
- Co-host first time-buyer workshops with mortgage originators, CPAs, attorneys, inspectors and municipal and code officials.
- Prepare educational materials, like case studies and buyer worksheets, with side-by-side comparisons of residential versus small owner-occupied multi-family property purchases.
- Be transparent about the realities of being a landlord and of complicating factors, like tenant screening, vacancy risk and landlord-tenant laws.
- Compile a list of loan officers with expertise in multi-family financing.
Training
Your agents should always refer clients to lenders, CPAs and lawyers, rather than providing financial or legal advice. Still, they need to grasp house hacking fundamentals. Consider encouraging them to pursue certifications and designations that will position them as experts, like Home Finance Resource (HFR) or CCIM (Certified Commercial Investment Member).
You can also compile materials on these principles that your agents can use to supplement their learning. Here are some examples:
Glossary of terms: Compile definitions of terms, including NOI, cap rate, gross rent multiplier, cash flow, rent roll, economic vacancy, market-rent schedule, pro forma, capital expenditures, PITI or PITIA and DTI.
Financing options: Provide an overview of FHA, VA and conventional conforming loans for small owner-occupied multi-family properties, with the caveat that financing is subject to lender overlays and borrowers’ full underwriting files. Also include a list of trusted and knowledgeable lenders your agents can use as their go-to.
Taxes: Agents should review IRS Publication 527.
Compliance: Review guidelines for referrals and client conversations. Agents should never guarantee rent, appreciation, loan approvals, free housing, tax savings or unit legality. They should always refer clients to qualified lenders, CPAs, lawyers or property-management services.
Property searches: Suggest agents save searches in the MLS for legal two- to four-unit properties, documented ADUs and single-family homes with legal rental potential. Create checklists to help them vet properties. Among other considerations, they should ask:
- Is the property properly zoned and permitted?
- Are all the units legal?
- Are all the units up to code and compliant with all rules and regulations?
- Which capital improvements are likely?
- Which occupancy laws apply?
Compliance
Because house hacking conversations involve financing, tax, investment and landlord-tenant issues, consult with your insurance broker and brokerage’s counsel. Define the limits of agent advice and review your E&O coverage, including exclusions, affiliated business arrangements, referral practices and state licensing obligations.
As affordability challenges continue to reshape the path to homeownership, house hacking offers buyers an alternative worth exploring. Brokers who equip their agents with the right training and resources can help clients understand both the opportunities and responsibilities of this approach.
