Which Type of Property Should You Purchase When House Hacking?

One question I always get from buyer looking to house hack - is which type of property should I purchase? 

Today we'll walk through the differences between - single-family homes, townhomes, condos - and then get into duplexes, triplexes, and fourplexes


So, Single-Family, Townhomes, and Condos:


Single-family homes provide space, privacy, - and the feeling of owning a traditional house.

House hacking a single-family home often means - you'll be renting out extra bedrooms to tenants - unless you have an ADU (accessorry dwelling unit) - or separate building on your property, that you decide to rent out

So keep in mind - that cash flow potential might be limited until you move out - and rent the entire property.


Townhomes are sort of a middle ground, between a single-family home and a condo.

They typically share walls with neighboring units - but come with more privacy than a condo would, with someone on top - below, and next to you on both sides.

I like townhomes  - this is what I do, because of the low-maintenance they provide - with the HOA fee taking care of a lot of the work needed for upkeep - such as lawn care, snow removal, trash - and even your roof and siding

Okay, continuing on

Condos are units within a larger complex or building - often having shared amenities and common spaces. 

House hacking a condo would typically be renting out spare bedrooms or even the entire unit - (once you've moved out after a year).

For both Condos and townhomes - they offer low-maintenance living with that HOA fee, and some have other amenities like a gym or pool - but it's suuuper important to review the (HOA) rules and restrictions, because some HOA's don't allow rentals at all. So.. don't get stuck in a property you can't even house hack

These properties typically appreciate in value at a higher rate - than muti-family properties do.

You're also likely going to be renting out bedrooms and sharing spaces with your tenants - if you want to lower your living expenses

Of course, don't have to rent out other bedrooms - you can do what we do and just live in it for a year - and turn it into a rental property after we move. Totally your discretion


Alright, now Duplexes, Triplexes, and Fourplexes:

These properties have pretty distinct advantages - and disadvantages for house hackers.

A duplex is two separate units - within the same building.

House hacking a duplex is pretty straightforward - you're living in one unit while renting out the other.

This setup allows you to be close to your tenants - which allows you to address any issues promptly, but obviously, you'll be living next door to your tenants.

On a positive note - It provides immediate cash flow, since you're collecting rent from the tenant in the other unit.


Triplexes and fourplexes are also pretty straightforward here - in they have 3 or 4 units within a single building.

With these property types - you can live in one unit and rent out the others - and once you move out - rent out the entire property.

These properties will likely cover all of your expenses - or even cash flow while you're living there. Even before you move out, which is great

If you're looking for higher cash flow potential, and are okay with being so close to your tenants - these multi-family properties are probably the best options for you

If you value privacy and prefer to collect cash flow once you move out - single-family or condos or townhomes - may be the right fit for you.

On the other hand, if you're open to living in close proximity to your tenants - and looking for that immediate cash flow - a duplex, triplex, or fourplex could be the ideal option.

I've seen success from friends, clients - and even personal experience - in all of these property types.

While most people would think a four-plex would be the best option - financially, it probably is.

You're getting 4 rental units for the price of one property.

But, it ultimately depends on your circumstances. Personally, I don't want to live in the same building as my tenants - and I've found.. that is okay.

Just remember - this is your house hacking journey, not mine. The best property type for you - will always be the one you find the most value in, for your lifestyle and financial situation.





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