Get your 'appreciation' up front with equity capture. 

To me, this is really simple.  

For your first house hack, start simple and go from there.

@Samuel Brant Promissory note for a simple interest loan.

There's nothing complicated about that and in many cases you can make enough to cover your mortgage, so you now have no out of pocket living expenses for housing, and you get to learn about running a rental up close where you can just walk next door and collect the rent if you want to go the simple route and find out what needs fixing the day it happens.You're the only one who can decide if RE investing is right for you. 

On my most recent inspection I was failed for not having the unit number on the entry door in the common stairwell... yes, they will fail you for something that simple.

Right away....anyone can do....owner/buyer sign a deed, file it at the courthouse and away you go.Could be more complicated than that and take more time...for example if you want a new survey, title insurance, financing, inspections and more.But really as simple as the first line. 

Maybe it was good timing or luck, but I was listening to Brandon Turner on an episode of the Bigger Pockets podcast and he said one simple question changed his entire business model.

Below is a screenshot of the model results but see below for a break out of the assumptions:Purchase price = List price (room for negotiation)Closing Costs = Estimate from lenderDown Payment = requirement from lender @ 25%Interest rate = rate offered on a two unit rental from lender Total rents/Month = current rents in place (room to raise based on market) Property taxes, Insurance, Water/Sewer, Trash removal = all reflect actual amounts paid by current ownerVacancy rate = 10% of gross rent  Cap Ex = 5% of gross rentMaintenance & Repairs = 5% of gross rentMonthly free cash flow = $155Total ROI = 7.14%My question is simple, do you think this is a good deal?

- Are you factoring equity capture, or forced appreciation potential?