Is It Still Worth It To House Hack In 2025?

October 11, 2025

Is It Still Worth It To House Hack In 2025?

With interest rates higher than in previous years, many prospective homeowners are asking: can you still buy real estate and live for less than renting? In this case study, we explore a real house hack in Denver, showing how a young investor successfully reduced his living costs while building long-term wealth.

Meet the Investor

The investor, a 28-year-old W-2 earner from Seattle, Washington, was paying $2,800 per month for a two-bedroom apartment with his girlfriend. Looking to reduce costs, he set realistic goals for his first house hack: lower monthly housing expenses, gain personal space, and start building equity.

Investor Profile

Age: 28
Employment: W-2 earner with solid credit
Financial status: had down payment saved and reserves ready
Current living costs: $2,800/month for a two-bedroom apartment
Goals: Reduce housing expenses, own a space near downtown Denver, begin house hacking journey

The Property

The investor purchased a side-by-side duplex in Arvada, just 5–10 minutes from downtown Denver and near Old Town Arvada. Each unit was three bedrooms, one bathroom, with approximately 1,000 square feet, including washer/dryer hookups and off-street parking. The property was rent-ready, requiring no immediate renovations, making it ideal for a first-time house hacker.

Why This Duplex?

Move-in ready: no major repairs required
Optimal location near downtown Denver
Side-by-side layout reduces noise issues compared to up-down units
Potential for future value-add opportunities

Financing and Deal Structure

The property was purchased for $655,000, appraised slightly higher, and included an $18,000 seller credit. With only $35,000 cash to close, the deal provided leverage and minimized upfront costs. A 30-year fixed mortgage with a 6.375% rate (after a two-one buy-down) ensured manageable monthly payments.

Financial Highlights

Purchase price: $655,000
Cash to close: $35,000
Financing: 30-year fixed, 6.375% after buy-down
Monthly cost to live in one unit (without roommates): under $2,100
Projected net cash flow after renting second unit via Section 8: ~$1,000/month
Cash-on-cash return: ~25%
Estimated payback period for down payment and closing costs: just over three years

Living Situation and Rental Strategy

By renting out the other unit to a Section 8 tenant, the investor reduced his effective living expenses. Optionally, he could rent out individual rooms to screened tenants, further lowering his personal housing cost to under $500 per month. This flexible approach allows for privacy, cash flow generation, and future scalability.

Key Takeaways

Goal 1: Reduce personal housing costs — achieved with net cost under $2,100/month
Goal 2: Build income and equity — cash flow after renting second unit ~$1,000/month
Option to rent by room or explore Airbnb/midterm rentals for additional income
Principal reduction acts as forced savings, contributing to long-term equity
Support system from brokers and lenders helps optimize property management and strategies

Final Thoughts

This case demonstrates that house hacking in 2025 is still highly viable, even with higher interest rates. By carefully selecting a property, structuring financing smartly, and having a clear plan for occupancy and renting, investors can significantly reduce living costs while building wealth. The key is to take action, analyze the numbers conservatively, and maintain flexibility in strategy. For young professionals looking to enter real estate, a well-executed house hack can be a game-changer for both financial security and future growth.