House Hack Simulator · Summary
Based on a $400K purchase, 2 rentable units at $900/mo each, and a 15-year horizon. Is this a strong house hack opportunity?
House Hack Score
Strong
Your net housing cost is $108/mo less than renting at $1,800/mo.
Net monthly housing cost
$1,692/mo
Rent coverage
73%
Final equity
$359K
Wealth vs rent & invest
+$382K
Key drivers
Rent coverage
Fair
Net housing cost
Fair
Equity growth
Strong
Scenario assumptions
Purchase price
$400K
Down payment
10% ($40K)
Mortgage rate
6.75%
Rentable units
2 units
Avg rent per unit
$900/mo
Market rent if not hacking
$1,800/mo
Time horizon
15 years
Closing costs
3%
Selling costs
6%
Property tax
1.2%
Insurance
$2,000/yr
HOA
None
Maintenance
1.5% of value/yr
Vacancy rate
5%
Rent growth
3%
Home appreciation
3%
Investment return
5.5%
What’s driving this
Rental income covers 73% of your mortgage, reducing your effective housing cost from $3,402 to $1,692/mo — $108 less than renting at $1,800/mo. Over 15 years you build $359K in equity. House hack wealth overtakes the rent-and-invest alternative around year 3. By year 15, house hacking puts you $382K ahead of renting and investing.
This summary is for educational purposes only and does not constitute financial advice. Results are estimates based on the assumptions shown above. Actual outcomes will vary based on market conditions, tenant quality, tax implications, maintenance costs, and other factors not fully captured here. Selling costs default to 6% of home value. Consult a financial advisor and real estate professional for personalized guidance.