What is house hacking in the military?

House hacking is buying a multi-unit property (duplex, triplex, or fourplex) with a VA loan, living in one unit, and renting the others. Rental income covers most or all of your mortgage, allowing BAH to become passive income.

Can I use a VA loan for house hacking?

Yes! VA loans allow 0% down payment on 2-4 unit properties as long as you occupy one unit as your primary residence. This makes house hacking accessible to service members without large savings.

Do I still get BAH if I house hack?

Yes, you receive full BAH based on your rank and location. If rental income covers your mortgage, your BAH becomes pure profit while building equity.

Free Tool

House Hacking Calculator

Estimate monthly cash flow for rental properties using VA loans with 0% down payment.

VA Loan Cash Flow Estimate

This calculator estimates monthly cash flow for house hacking with a VA loan (0% down, no PMI). Calculations use standard mortgage formulas. Actual costs may vary based on location, property condition, and market factors.

Loan Type

VA Loan (0% down)

Formula

Standard PITI

Confidence

Estimate

Property Details

Property Purchase Price

VA loan: 0% down payment required

Interest Rate (%)

Current VA rates typically 5.5% - 7.5%

Annual Property Tax

Typically 1-2% of property value annually

Annual Homeowners Insurance

Varies by location and coverage

Your Monthly BAH

Based on rank and location

Expected Monthly Rent

From roommates or separate unit

VA Loan Benefits: No down payment, no PMI (private mortgage insurance), typically lower rates than conventional loans

Monthly Cash Flow Analysis

Monthly Expenses (PITI)

$3,062

Principal + Interest:$2,528

Property Tax:$400

Insurance:$133

Monthly Income

$4,600

Your BAH:$2,400

Rental Income:$2,200

Positive Cash Flow

+$1,538

Net monthly cash flow after all expenses

Important Disclaimer

This calculator provides estimates for planning purposes only. Actual costs will vary based on HOA fees, maintenance, utilities, vacancy rates, property management, and unexpected repairs. Always build a 10-20% buffer for unexpected expenses and consult with a real estate professional and financial advisor before purchasing.

House Hacking Basics

Live in one unit while renting out others (duplex, triplex, fourplex)
VA loan allows 0% down for 1-4 unit properties as primary residence
Tenants help pay down your mortgage while you build equity
Convert to full rental after PCS to new duty station

Important Considerations

Budget for 5-10% of rent for maintenance and repairs annually
Plan for vacancy periods - budget 1-2 months rent per year
Consider property management fees if you PCS (typically 8-10%)
Research local landlord-tenant laws and rental market demand

VA Loan & Real Estate Resources

VA Home Loans Overview →VA Certificate of Eligibility (COE) →BiggerPockets House Hacking Guide →

Cash flow calculations use standard mortgage formulas. Always verify with lenders and consult professionals before making real estate investment decisions.