How does house hacking a two-family work?

House hacking a two-family means buying a duplex, living in one unit, and renting out the other so the tenant's rent offsets your mortgage payment. Owner-occupant financing, including FHA loans with a lower down payment than an investment purchase would require, is usually available since you are living in the property. The second unit needs to be legally permitted for the rental income to count toward your loan approval. Joel Boss can point you toward two-family listings with legal second units.