Buy a duplex, triplex, or fourplex. Live in one unit. Rent the others. Find out what you actually pay each month after rental income.
Looking for multi-unit properties in Indianapolis?
Our neighborhood guide covers price ranges, school ratings, and commute times across six Indianapolis areas to help you find the right location.
View the Neighborhood Guide ›House hacking allows a first-time buyer to offset housing costs using rental income from the same property. You buy a multi-unit property, live in one unit, and collect rent from the others. The rental income offsets your mortgage payment, sometimes significantly.
If you are still deciding whether buying makes sense, want to see the full monthly payment breakdown, or want to plan your payoff schedule, the Related Calculators section at the bottom of this page links to each of those tools.
Buying a single-family home instead?
The mortgage calculator gives you the full monthly payment including Marion County taxes, insurance, PMI, and closing costs.
Use the Mortgage Calculator ›| Principal & Interest | -- |
| Property Tax (monthly) | -- |
| Homeowners Insurance (monthly) | -- |
| Total Monthly Payment | -- |
| Gross Rental Income | -- |
| Vacancy Buffer (5%) | -- |
| Net Rental Income | -- |
| Your Effective Monthly Cost | -- |
Your Effective Monthly Cost
After rental income
Here is what the calculator produces for a typical Indianapolis house hack: $280,000 duplex, 5% down, 6.5% rate, 30-year term, one rental unit at $1,000/month, good credit.
In this scenario rental income covers 43% of the total mortgage payment. Your effective housing cost drops from $2,217 to $1,267 per month, saving $950 compared to owning without a tenant. Enter your own numbers above to see how different rent levels and property prices affect your situation.
Interest rate and rent used for illustration only. Verify current rates with your lender. Rental income estimates are illustrative. Vacancy rates and actual rent will vary. Verify with a local property manager before purchasing.
When you buy a multi-unit property as your primary residence, you qualify for owner-occupant financing. That means lower down payment requirements and better interest rates than an investment property loan. You live in one unit and rent the others.
The rent you collect reduces your effective housing cost. In some cases it covers the entire mortgage. Even partial coverage makes a meaningful difference over time.
FHA loans allow as little as 3.5% down on properties up to 4 units if you live in one. A popular choice for first-time house hackers. See glossary for FHA details.
Indiana's IHCDA down payment programs may apply to multi-unit purchases if the property meets eligibility requirements. Verify at in.gov/ihcda.
Lenders may count a portion of projected rental income toward your qualifying income. This can help you afford a larger property than a single-family purchase alone.
When you move out, you have a rental property already in place.
House hacking involves responsibilities beyond a standard home purchase, including tenant screening, lease agreements, and local landlord-tenant law. Consult a qualified lender and a local real estate attorney before purchasing.
First time buying in Indianapolis?
Our step-by-step guide covers every stage from pre-approval to closing day, including what to know about buying a multi-unit property as your primary residence.
Read the First-Time Buyer Guide ›