Today Clayton Hepler shares his small multifamily house hacking story from Pittsburg, Pennsylvania.

Housing hacking is a growing trend sweeping the nation and transforming finances everywhere. Through house hacking, homeowners are able to live for free! You can tap into this life-changing strategy completely legally! Grab a FREE copy of our House Hacking Quick Start Guide to get started – it can save you thousands with specialized information you won’t find anywhere else. 

House Hacking Case Study

As the Director of Acquisitions for a property management company, Clayton has an insider view of the world of real estate. So when he heard about the idea of house hacking, he knew it was a good option for his life. For Clayton, the goal of house hacking was to eliminate his $1,200 monthly housing expense on his path to financial independence.

The House Hack

In August 2020, Clayton purchased a small multifamily property to call home. After making several cold calls to owners of potential properties, Clayton landed on a three-unit property that would allow him to live in one unit and rent out the other two units. The plan is for this first property to be the start of a leapfrog strategy that will involve purchasing four houses in the next five years.

Updating the Units

When Clayton closed on the property, all of the units required a significant amount of work. The grand total of the renovation expenses was $110,000. That involved putting new floors, new paint, new kitchens, and new windows in all of the units.

Throughout the process, Clayton hired contractors to complete the work.

The Tenants

Clayton closed on the property this month. With that, he hasn't filled the units with any tenants yet. First, he needs to finish up the renovations.

But when he does find tenants, he plans to self manage with the help of

The Numbers of the Deal

It’s time to find out exactly how profitable this house hacking strategy was!


Clayton used an FHA 203k loan to purchase the $202,320 house with an $18,000 down payment. With a 3.5% interest rate, the total monthly mortgage comes to $1,907. That includes principal, interest, taxes, and insurance.

Rental Income

Clayton plans to rent out the other units for a total of $2,200 per month.

  • Previous housing costs: $1,200
  • Gross Rent: $2,200
  • Mortgage payment: $1,907
  • Cashflow before maintenance and vacancies: $293
  • Total housing savings: $1,493

The cash flow of the property is slightly positive. With that, Clayton is able to live for free while enjoying a few hundred dollars in extra income each month.

Want someone else to pay your mortgage? Dive into housing hacking with our House Hacking Quick Start Guide. 

How to Connect

Are you interested in learning more about Clayton's story? You can connect with him on Facebook and Instagram.

The Learning Curve

Clayton completely eliminated his housing costs with this decision. He plans to save the $1,200 per month to further his real estate investing plans. The goal is to use these house hacking savings to purchase his next house hack.

If you are considering house hacking, Clayton says, “Do it. There is no other vehicle that I know of that can accelerate your path to financial freedom like house hacking can, unless you are doing something illegal!”

The Bottom Line

Clayton was able to completely eliminate housing expenses from his life. What if you could do the same?

Find out how Dan repurposed a previous rental investment to save on housing costs.

If you are interested in creating your own house hacking story, then check out our ultimate guide, listen to our house hacking podcast, or read more case studies for inspiration. You never know how dramatically your life can change through this one choice!

If you choose to pursue a house hack of your own, then please share your story with us! We would love to showcase your success.