# House Hacking

*Real Estate — Finicade finance glossary*

House hacking is buying a property you live in while renting out part of it — a duplex unit, a spare room, a basement flat. Its advantage is financing: an owner-occupied mortgage needs a far smaller deposit and carries a lower rate than an investment loan, while the rent covers much of the payment. Most lenders require you to live there for a year, after which it can convert to a pure rental.

**Also known as:** house hack, owner occupied rental

**Related terms:** [Rental Property](https://finicade.com/glossary/rental-property), [Down Payment](https://finicade.com/glossary/down-payment), [Mortgage](https://finicade.com/glossary/mortgage), [Cash-on-Cash Return](https://finicade.com/glossary/cash-on-cash-return), [Rental Yield](https://finicade.com/glossary/rental-yield)

Source: https://finicade.com/glossary/house-hacking