House hacking is a strategy for buying a property and living in it while renting out the other units to tenants to help cover the mortgage cost. Here are the general steps for house hacking a 4-plex:
Research: Look for properties in your area that are zoned for multi-unit housing and are within your budget. Consider factors such as location, condition of the property, and potential rental income.
Financing: Get pre-approved for a mortgage and determine how much you can afford to spend on a property. House hacking typically requires a conventional loan with at least a 3.5% down payment or an FHA loan with a 3.5% down payment, but
Depending on the scenario and the country, it could also be other loan types.
Purchase: Once you find a property you like, make an offer and negotiate the terms of the sale. Make sure to have a home inspection and review the results with your realtor before closing.
Move-in: Once you have the keys to your new 4-plex, move into one of the units and begin finding tenants for the other units. You may need to make some repairs or renovations to the teams before renting them out,
Renting: Advertise the units to potential tenants and screen them thoroughly. Draw up leases and collect security deposits and rent. Also, it could be a good idea to have a professional property management team doing this for you if you want to avoid handling everything yourself.
Ongoing management: Once your tenants are in place, manage the property to ensure that rent is collected on time and that the units are kept in good condition. You may need to make occasional repairs or handle other issues that arise.
By following these steps, you can effectively “hack” your housing costs by using rental income from the other units to help cover your mortgage payments. Remember that this is a general guide, and laws, regulations, and procedures may vary from state to state, country to country, and even place to place.