What is House Hacking?
House hacking is a real estate investment strategy where you buy a property, live in one part of it, and rent out the rest to offset your mortgage payments. This calculator helps you estimate how much roommates can reduce your housing costs and calculate your return on investment.
How Does This Calculator Work?
- Enter Property Details: Input your property value, down payment, interest rate, and loan tenure
- Add Monthly Expenses: Include property tax, maintenance, insurance, HOA fees, and utilities
- Add Roommates: Enter each rooms rent and utility contribution
- See Your Savings: Watch your effective housing cost shrink as you add roommates
House Hacking Benefits
- Potentially live rent-free or even profit from your home
- Build equity while others help pay your mortgage
- Lower barrier to homeownership in expensive markets
- Learn landlord skills with minimal risk
Frequently Asked Questions
What is a good ROI for house hacking?
A good ROI for house hacking typically ranges from 10-20% annually. However, if you can reduce your housing costs to zero or generate positive cash flow, that represents an even better return on your investment.
How many roommates do I need to live rent-free?
The number of roommates needed depends on your total housing costs and the rent you can charge per room. Use the break-even indicator in this calculator to find your magic number.
Is house hacking legal in India?
Yes, renting out rooms in your own property is legal in India. However, you should check your local society rules and have proper rental agreements in place.