Comprehensive House Hacking Calculator

House hacking is a real estate strategy that allows you to reduce your living expenses and increase your financial returns by renting out a portion of your property. Whether you're a seasoned investor or a first-time homebuyer, house hacking can provide substantial benefits, including lower mortgage payments, reduced living costs, and the potential for passive income. By leveraging your property to generate rental income, you can make homeownership more affordable and accelerate your path to financial independence.

Explore More: Discover how to maximize your real estate investments with our comprehensive guide on House Hacking Strategies with Multi-Family Properties. Learn practical tips and proven strategies to build wealth effectively!

Initial Investment

This section calculates your initial investment required to purchase the property.

Price ($): Down Payment (%):

Inspections ($):

Initial Improvements ($): Closing Costs ($): Number of House Hackers:

Number of Units: Interest Rate (%): Loan Term (Years):

Expenses and Revenue

This section helps you estimate your income and expenses from renting out the property.

Total Annual Rent ($): Occupancy Rate (%):

Annual Taxes ($): Homeowners Insurance ($): Mortgage Insurance ($):

Annual Repairs ($): Lawn Care ($): Legal / Accounting ($):

Utilities

Enter the cost of utilities for the property here.

Heat ($): Gas ($):

Electricity ($): Garbage ($):

Landline / Cable / Internet ($):

Total Annual Utilities ($):

Financial Metrics

This section shows key financial metrics based on your inputs.

PITI ($):

Gross Operating Income (GOI) ($): Net Operating Income (NOI) ($):

Cap Rate (%): Gross Rental Yield (%):

Cash-on-Cash Return (CCR) (%):

Multi-Family Properties

Key Terms Explained

Financial Metrics

PITI ($): The total monthly payment for your mortgage, including Principal, Interest, Taxes, and Insurance.
Gross Operating Income (GOI) ($): The total amount of money earned from renting out the property before subtracting any expenses.
Net Operating Income (NOI) ($): The total income from your property after subtracting operating expenses (like maintenance and taxes), but before accounting for mortgage payments.
Cap Rate (%): The percentage that shows the rate of return on your property investment, calculated by dividing the Net Operating Income (NOI) by the property’s purchase price.
Gross Rental Yield (%): The percentage that represents the annual rental income relative to the property’s purchase price, indicating how much income the property generates compared to its cost.
Cash-on-Cash Return (CCR) (%): The percentage that measures the return on the actual cash invested in the property, based on the annual cash flow you receive after expenses.

Summary Results

Monthly Mortgage Payment: The amount you pay each month towards your mortgage loan, including principal and interest.
Monthly Rental Income: The total amount of money you earn from renting out your property each month.
Monthly Operating Expenses: The total monthly costs associated with running your property, such as taxes, insurance, and maintenance.
Monthly Cashflow: The amount of money you have left each month after paying your mortgage and operating expenses, representing your profit or loss.
Net Operating Income (NOI): The total income from your property minus all operating expenses, excluding mortgage payments and taxes.
Cap Rate: A percentage that shows the return on investment for your property, calculated by dividing the NOI by the property’s purchase price.
Gross Rental Yield: A percentage that indicates the annual rental income compared to the property’s purchase price, showing the property’s income-generating potential.
Cash-on-Cash Return (CCR): A percentage that measures the return on the actual cash you invested in the property, based on your annual cash flow.
Total Annual Utilities: The total cost of all utilities for the entire year, such as heat, gas, and electricity.
Utilities Per Unit: The average utility cost per unit of the property, calculated by dividing the total annual utilities by the number of units.