House hack: multi-unit vs single-family
See what it costs to live in a 2-4 unit versus a single-family home.
Share or save these exact numbers. The link keeps every input, so whoever opens it sees the same result and can change any number to compare options.
Single-family home (you live in it)
The purchase price of this home.
The part of the price you pay in cash up front, as a percentage. Some loans for homes you will live in allow as little as 3.5% down. Confirm with a lender.
What you pay each year to insure the property, in dollars. Get a quote from an insurance company.
Yearly mortgage insurance as a percentage of the loan, charged when you put little down. Different loan types call it different names.
What you could rent this single-family home for if you moved out later.
Multi-unit (you live in one unit)
How many separate homes (apartments) are in the building you would buy, from 2 to 4. You live in one and rent out the rest.
The purchase price of this home.
The part of the price you pay in cash up front, as a percentage. Some loans for homes you will live in allow as little as 3.5% down. Confirm with a lender.
What you pay each year to insure the property, in dollars. Get a quote from an insurance company.
Yearly mortgage insurance as a percentage of the loan, charged when you put little down. Different loan types call it different names.
What you would charge each month for every unit you rent out.
Shared assumptions
The yearly cost of the loan, as a percentage of what you owe. Use a current quote from a lender, because rates change often.
How many years you have to pay the loan back. A 30-year loan has smaller monthly payments; a 15-year loan has bigger payments but costs far less interest overall.
Yearly property tax as a percentage of the price. It varies a lot by county, often between 1% and 2%. Use your local rate.
Yearly upkeep and repairs as a percentage of the home's price. 1% is a common planning figure.
Fees paid when the sale closes (lender, title company, recording and similar), as a percentage of the price. Often around 2% to 5%. A lender can give you an estimate.
The percentage of time the property sits empty between tenants, earning no rent. 5% to 8% is a common planning figure; 6% is about three weeks a year.
What a property manager charges once you move out and rent every unit, as a percentage of the rent. Often 8% to 10%. Enter 0 if you would manage it yourself.
What it costs you to live there each month
$1,613
vs $2,702 for the single-family. $1,089 less per month with the multi-unit.
Deal check
Rules-based reviewSolid house hack
Workable on paper. Check the flags below before you commit.
Pass: the numbers don't work. Thin: little room for mistakes. Solid: workable. Strong: clears the usual targets with room to spare.
- Living in the multi-unit costs you $1,613 a month, $1,089 less than the single-family.
- Once you move out it loses $910 a month, so it only works as a keeper if rents rise or you refinance.
- If one rented unit sits empty, your monthly cost rises to about $2,647.
- You need $14,300 more cash to close than on the single-family.
What would change the answer
- →Rent near $1,363 per unit would make it break even after you move out.
- →Confirm the unit rents with listings or a rent survey, since the whole plan rests on them.
Terms used:House hackingOwner-occupancy requirementCash-on-cash returnVacancy
An estimate from your inputs, not financial, tax or legal advice. Verify every number with real comps, quotes and the source records.
Living there
- Single-family: full monthly cost
- $2,702
- Multi-unit: full monthly cost
- $4,715
- Rent from 3 other units
- − $3,102
- Multi-unit, net to you
- $1,613
- Cash to close: single-family
- $19,500
- Cash to close: multi-unit
- $33,800
After you move out and rent everything
-$910
Multi-unit cash flow / mo
-$1,059
Single-family cash flow / mo
-32.3%
Multi-unit cash-on-cash
-65.2%
Single-family cash-on-cash
Why a multi-unit can make sense as a first purchase
Your tenants' rent covers a large part of the payment, so living there costs less than a single-family at these numbers. When you move out, you keep a property with 4 rent streams instead of one.
Many low-down-payment loans allow owner-occupied buildings of up to four units, and lenders may count part of the expected rent toward qualifying. Rules and limits vary, so ask a lender.
What to weigh before you do it
After you move out, the multi-unit loses $910 a month at these numbers. A low down payment and a high rate leave little margin, so keeping it as a rental only works if rents rise, you refinance, or you add income. Check this before you buy.
You become a landlord and live next to your tenants. Vacancy, repairs on several units and the occupancy requirement (lenders typically expect you to live there for about a year) all matter. Larger buildings can also need bigger cash reserves.
For education and planning only. Results are estimates based on the numbers you enter and are not financial, tax, legal or lending advice. Loan rules, rates and taxes vary, so confirm details with a licensed professional.
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