Today Andres Bustamante shares his room rental house hacking story from Austin, Texas.

Housing hacking provides an opportunity to completely transform your finances. Through house hacking, you could be able to live for free. Imagine what you could do with those savings! You can tap into this life-changing strategy for free. 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 a recent graduate of the University of Texas Austin and real estate agent in the area, Andres is familiar with the ins and outs of real estate in Austin. But when he heard about the idea of house hacking from in a mastermind group called the Rat Race to FI with Diego Corzo. Once Andres discovered the powerful tool of house hacking, he was ready to get started right away.

When asked why he decided to pursue house hacking, Andres shares that “the main reason was Financial Independence, it gives me the freedom to work whenever I want, travel whenever I want, spend time with my family and essentially make my money work for me as opposed to me working for my money.” Andres has the goal of becoming financially independent by age 27 with a portfolio of ten properties that generate $900 in income each month.

The House Hack

As a way to start working toward this impressive goal, Andres closed on his first house hack in April 2020. He found the 4 bedroom 3.5 bath property through a real estate connection. Once Andres saw the property, he made an offer and closed the deal.

After closing, Andres moved into the master bedroom. As a single-family home, he rented out the three extra rooms individually to friends. When Andres moved into this new space, he was completely happy with the living arrangement. Prior to this house hack, he was living in an apartment complex and loved the opportunity to own a property for house hacking.

Updating the Units

When Andres purchased the property, he was able to move in without any renovations.

The Tenants

Andres quickly found tenants to fill the extra rooms of the house through friends. As a recent graduate of the University of Texas at Austin, it was easy to find friends that needed a place to stay. For now, he self manages with the help of

The Numbers of the Deal

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


Andres used a conventional loan to purchase the $286,000 house. He put down 10%, and the interest rate on the loan was 3.5%. With that, the total mortgage cost is $1,850.

Rental Income

Andres was able to rent out the three extra bedrooms of the property quickly. He charges $700 for two of the three bedrooms and $750 for the third bedroom. That leads to a total monthly rental income of $2,150.

  • Previous housing costs: $850
  • Gross Rent: $2,150
  • Mortgage payment: $1,850
  • Cashflow before maintenance and vacancies: $225
  • Total housing savings: $1,075

The cash flow of the property is cash flow positive. Plus, Andres is able to live in the master bedroom rent-free!

Want to live for free while someone else pays your mortgage? Dive into housing hacking with our House Hacking Quick Start Guide. 

How to Connect

Are you interested in learning more about Andres' story? You can connect with him on his website – House Hack Austin. He is also available on Facebook, LinkedIn, and Instagram.

The Learning Curve

As a new house hacker, Andres is very happy with his journey so far. The best part is collecting rent on the first of the month. The biggest issue he has run into is splitting the utilities fairly, which he plans to figure out by the time he closes on his next house hack in May 2021.

Not only is Andres enjoying house hacking, but his roommates are also learning from the experience. Andres says, ” All of our roommates get along and each of my roommates will now be house hacking after they leave my place! They saw the power of REI first hand and decided to act! That for me is the biggest win.”

The savings that Andres was able to create through this house hack will be invested in his next house hack. He offers this advice for anyone considering house hacking, “Don't be afraid! Analysis Paralysis is real, if you have the money act now, no deal is going to be perfect.”

The Bottom Line

Andres is well on his way to building a portfolio of real estate to create financial independence. His story shows that it is possible for anyone to get started, even if you are just graduating from college!

Breelon finds a private living space and significant housing savings in the next case study.

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.