Buy a home that can also become your first rental.

House hacking means buying a home, living in part of it, and renting out the rest to offset or cover your mortgage. That can be a duplex where you live on one side, a single-family home with roommates, or a property with a basement unit or ADU. It is one of the most accessible ways to start investing in real estate.

Yes. FHA loans allow as little as 3.5 percent down on one to four unit properties as long as you live in one of the units, which makes them a common house hacking tool. Conventional owner-occupied and VA loans can also work. The key requirement is that the property is your primary residence.

Because a house hack is owner-occupied, you can often use low-down-payment financing such as 3.5 percent with FHA, 3 to 5 percent with many conventional loans, or zero down with VA if you are eligible. That is far less than the 20 to 25 percent typically required on a standard rental purchase.

House hacking can be a strong first move because it lowers your monthly housing cost and gives you a path into rental ownership while you live in the property. The tradeoffs are sharing space or managing tenants, so it works best when the home functions well both as a place to live and as a future rental.

Many house hackers reduce or fully cover their mortgage payment, and some generate positive cash flow once they move out and rent the whole property. Returns depend on realistic rent estimates, repair budgets, and the price you pay. Overestimating rent is the most common mistake.