Are there any advantages to house hacking if buying with cash?

[John Jackson]

What would be the advantages to buying a duplex, living in one side, and renting out the other as opposed to just renting out both units and living in a rented apartment? Assume that the duplex is being purchased in cash, without a mortgage.

[Craig Curelop]

@Caleb Brown - The biggest draw to house hacking is that you can purchase a 1-4 unit property with so little down. Typically 3% to 5% rather than the typical 20%. The only caveat here is that you NEED to live in the residence you purchase for one year otherwise it is considered mortgage fraud. 

By living in one unit (you have to do this) and renting the other, you are able to live for free and likely save hundreds to thousands of dollars every month in saved rent expense, cash flow, appreciation of the property, tax benefits, and more. 

Hope this answers your question in a nutshell!