House Hacking Offset Calc
Calculate how much of your mortgage PITI is covered by rental income from other units. Includes vacancy and maintenance reserves for real estate investors.
House Hacking Offset Calculator
See how much of your mortgage is covered by rental units
Strategy Overview
Instead of paying $2,500, you only pay $970 because your tenants cover the rest.
Accounting for 'Gross' vs 'Net': Simply subtracting rent from mortgage is risky. This tool accounts for a 15% reserve for repairs and empty units, which is essential for long-term survival.
What is House Hacking?
House hacking is a real estate investment strategy where you buy a multi-unit property (like a duplex, triplex, or fourplex), live in one unit, and rent out the others. The goal is to have your tenants pay most—or even all—of your mortgage, allowing you to live for free or at a massive discount.
How This Offset Calculator Works
Many beginners make the mistake of simple subtraction: Total Rent - Total Mortgage. However, professional investors know that "Gross Rent" is not "Net Rent." This House Hacking Offset Calculator forces you to account for two critical buffers:
- Vacancy Reserve (5-10%): Units don't stay full 365 days a year. You need to save money to cover the mortgage during tenant turnover.
- Maintenance \u0026 CapEx (10-15%): Toilets break and roofs need replacing. Setting aside a percentage of every rent check ensures you aren't surprised by an expensive repair bill.
The 'Living for Free' Milestone
If your Net Housing Cost is $0 or negative, you have achieved the holy grail of house hacking. You are essentially living for free while building equity in an asset that your tenants are paying off for you.
3 Pro Tips for Successful House Hacking
- Look for 'By-the-Room' Opportunities: In expensive cities, renting out individual rooms in a large single-family home can often generate more revenue than a traditional duplex.
- Analyze the 'Exit Strategy': Before you buy, use our BRRRR Calculator to see if the property will still be profitable as a traditional rental once you move out of your unit.
- Manage Your Own Units (At First): Learning how to screen tenants and handle minor repairs early on will save you thousands in property management fees as your portfolio grows.
The tools and calculators provided on The Simple Toolbox are intended for educational and informational purposes only. They do not constitute financial, legal, tax, or professional advice. While we strive to keep calculations accurate, numbers are based on user inputs and standard assumptions that may not apply to your specific situation. Always consult with a certified professional (such as a CPA, financial advisor, or attorney) before making significant financial or business decisions.
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