House hacking is using an owner occupant loan to get into a home or a 2-4 unit property.

I've helped people with SBA loans to purchase real estate for a business, but for buying rental real estate, the DSCR loan is a much better option.

Let's use that as an example. 20% down is $43,000 plus lender loan origination fees, closing costs etc is going to push you over $50,000 cash out of pocket.

I got a HELOC loan on the home for $130k.

Quote from @Devin James: Im currently learning this lesson with New Builds that have taken twice as long to complete than anticipated.....Finishing a Real Estate project ASAP is critical because...1) Holding Costs add up quickly- Loan Interest- Property Taxes- Insurance2) Investor Capital- Our financial projections are dependent on how fast we can turn our investors capital.

I get what your saying I was employed in the late 80s by a big syndicator in SF who had over 250 different apartments  senior housing student housing shopping  MHP and i headed up land development for them..

I toured the property when they were home and they asked me how the living situation was gonna work, which I explained that my loan said that I had to live on the property for a year, and the tenant next door was on a year lease & he was month to month... so he was going to have to leave.

I know that interest on the acquisition loan can be included in the cost basis since it’s inventory.

Instead of moving into another single-family home, consider house hacking a duplex or triplex, this allows you to use low down payment loans (FHA, conventional) and offset your mortgage with rental income, accelerating your path to financial freedom.

When my loan was not going to close, it was one of the options that my broker and lender told me about and actually referred me to for a conversation.