Calculator · Buy and hold

House hacking calculator

Buy a 2-4 unit, live in one unit and rent the others. See cash to close, what your housing really costs, and the cash flow once you move out. Results update as you type.

Property

Loan typeResults at the top use the loan you pick. Both loans are compared below.

Purchase price

Closing costsPercent of price. Typical 2-4%.

Upfront repairs / reserves

FHA loan

FHA down paymentFHA can allow as little as 3.5% down for qualifying buyers.

FHA interest rate

FHA upfront mortgage insurance (financed)Percent of base loan, added to the loan.

FHA annual mortgage insurancePercent of loan per year.

Conventional loan

Conventional down payment

Conventional interest rate

Conventional PMIPercent of loan per year. Only applied if the down payment is under 20%.

Term

Loan term (years)

Rent

Your unit's rent after you move outPer month.

Other unit 1 rentPer month.

Other unit 2 rentPer month.

Other unit 3 rentPer month. Leave 0 for a triplex.

Rent you would pay for a comparable placePer month. Used for the savings figure.

Vacancy and credit lossPercent of rent.

Operating expenses

Property tax ratePercent of price per year.

Insurance per year

Repairs and maintenancePercent of all-unit rent.

CapEx reservePercent of all-unit rent.

Property management (after move-out)Percent of rent collected.

HOA per month

Owner-paid utilities per month

Results for the loan you picked

Updates as you type. The formulas are under "How this is calculated" below.

Cash to close
Your effective housing cost (per month)
Savings vs renting (per month)
Cash flow after move-out (per month)
Cash-on-cash after move-out
DSCR after move-out

Living there

Down payment
Total loan
Closing costs
Principal and interest (per month)
Mortgage insurance (per month)
P&I plus mortgage insurance (per month)
Operating costs while you live there (per month)
Rent from other units after vacancy (per month)
Savings vs renting (per year)

After you move out

All units' rent at market (per month)
Rent collected after vacancy (per month)
Operating costs incl. management (per month)
NOI (per month)
Cash flow (per year)
Cap rate

FHA vs conventional

FHA cash to close
FHA effective housing cost (per month)
FHA cash flow after move-out (per month)
Conventional cash to close
Conventional effective housing cost (per month)
Conventional cash flow after move-out (per month)

How to use this calculator

Pick FHA or conventional. Check the rate and down payment for that loan with a lender.
Enter the price and the rent each other unit could earn. Enter your own unit's rent too, for the day you move out.
Enter what you would pay in rent for a similar place. That sets your savings figure.
Fill in tax, insurance, repairs, CapEx, management and utilities. Use real quotes where you have them.
Read the top rows: cash to close, your effective housing cost, and cash flow after you move out. Compare FHA and conventional in the last block.

Worked example

The page opens on a $675,000 triplex with an FHA loan: 3.5% down at 6.25%, 1.75% financed upfront insurance and 0.55% annual insurance, over 30 years. Rents are $2,400 for your unit, $2,600 and $2,500 for the others, with 5% vacancy.

Cash to close: $48,875 (down payment $23,625, closing $20,250, repairs $5,000).
Total loan: $662,774. Principal and interest $4,080.81 plus mortgage insurance $298.55 per month.
While you live there, the other units bring in $4,845 per month after vacancy. Your effective housing cost is $1,353 per month, against $2,400 of rent, so you save $1,047 per month.
After you move out and rent every unit, cash flow is $357 per month ($4,283 per year), with a cap rate of 8.42% and a DSCR of 1.08x.
The conventional option (5% down at 6.5%) needs $59,000 to close and leaves $389 per month in cash flow after move-out.

How this is calculated

Down payment = price x down %. FHA loan = price x (1 - down %) x (1 + upfront insurance %); the upfront insurance is financed. Conventional loan = price x (1 - down %).
Principal and interest use the standard amortizing payment: P x r / (1 - (1 + r)^-n), with r = rate / 12 and n = years x 12.
Mortgage insurance per month: FHA = base loan x annual insurance % / 12. Conventional PMI = loan x PMI % / 12, only when the down payment is under 20%.
Cash to close = down payment + closing costs + upfront repairs.
While you live there: operating costs = tax + insurance + HOA + utilities + (repairs % + CapEx %) x all-unit rent. Rent from other units is counted after vacancy.
Effective housing cost = P&I + mortgage insurance + operating costs - rent from other units. Savings = rent you would pay - effective cost.
After move-out all units rent. NOI = collected rent - operating costs - management % x collected rent. Cash flow = NOI - P&I - mortgage insurance. Cap rate = NOI x 12 / price. DSCR = NOI / (P&I + mortgage insurance).

Year one only, before income tax. The spreadsheet version adds 10 years of growth and equity; this page does not. Rates, insurance and PMI vary by lender and borrower.

Frequently asked questions

Can I really put 3.5% down on a multifamily house hack?

Often, yes. FHA loans can allow 3.5% down on a 1-4 unit home if you will live in it, but credit, income and lender rules vary. Ask a lender what you qualify for.

Do I have to live in the property?

Owner-occupant loans such as FHA usually require you to move in within a set time and stay for a period, often about a year. The exact rule depends on the loan and lender, so confirm it before you buy.

Do lenders count rent from the other units?

Many do, often at a share of market rent, and the rules differ by loan type and lender. Do not assume the full rent will count toward your qualifying income.

Why show cash flow after I move out?

A house hack has two stages. First you live there at a reduced cost. Later you rent your unit too and it works like a regular rental. This page shows both so you can judge the deal either way.

Is FHA or conventional better for a house hack?

It depends on your down payment, credit and the rate you are offered. FHA needs less down but adds mortgage insurance; conventional PMI can be cheaper with good credit. Compare both on the same property with real quotes.