Today Ayush Gupta shares his multi-family house hacking story from New Orleans, Louisiana. 

House Hacking Case Study

As a physician in New Orleans, Ayush was looking for a way to create passive income through monthly cash flow. When Ayush first heard about house hacking through podcasts, he knew it was an excellent opportunity. 

Without any dependents to worry about, he took the leap into house hacking quickly. 

The House Hack

After looking at potential properties through an MLS, Ayush closed on a small multi-family property with four units in October 2020. There are two upstairs units and two downstairs units.

When he bought the property, each unit had two bedrooms and one bathroom. After some renovations, one of the downstairs units has two bathrooms. 

Here's a closer look at the property:

The exterior of the house

Front porch area

Backyard area


Updating the Units

The four-unit property needed some repairs to the exterior. These included painting all of the wood on the outside, cleaning out the crawl space, and replacing the wooden porch. 

Additionally, two of the units needed more extensive interior renovations. Unit A needed a complete renovation of an existing bathroom, new paint, a kitchen renovation. Plus, Ayush added an additional bathroom to this unit for forced appreciation. 

Unit B needed a new washer and dryer set up and a new toilet. Overall, Ayush has spent $28,000 on the renovations. But he plans to make more updates to the property after saving more. 

The Tenants

The property came with tenants installed. With that, he hasn’t had to search for new tenants yet. Currently, he uses Hemlane for property management. 

Unfortunately, he got off to a rocky start with his tenants after a bathroom ceiling fell down within his first week of ownership. In another unit, contractors accidentally broke a glass table that greatly upset the tenant. After the involvement of lawyers, everything was smoothed over. But Ayush decided to pass off tenant management to a property manager for now. 

The Numbers of the Deal

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


Ayush used an FHA  loan with 3.5% down to purchase the $690,000 home with a 2.265% interest rate.

In total, Ayush’s monthly mortgage is $4,298, which includes principal, interest, taxes, and insurance.

Rental Income

Currently, Ayush is bringing in a total of $4,425 in rent from his three tenants. 

  • Gross Rent: $4,425
  • Mortgage payment: $4,298
  • Cashflow before maintenance and vacancies: $127
  • Housing costs before house hacking: $2,265
  • Total housing savings: $2,392

The cash flow of the property is positive. After the costs of property management, he is essentially breaking even. Currently, he is saving for future renovations and CAPEX. 

The Learning Curve

Although there were many bumps in the road, Ayush has learned a lot along the way. Even with leaks and major renovations, he has been able to solve most of the problems with the help of experienced contractors. Plus, the property has already been appraised for a higher price than the sale price. 

Throughout the process, Ayush has worked with contractors to complete the necessary renovations. His relationship with the contractor was good for the most part. However, there was a slow down when the general contractor caught COVID and delayed completion of the project. Ayush recommends starting your research early, not rushing into a renovation, and setting realistic goals and expectations for the maintenance of the property amid renovations. 

If you are on the fence about house hacking, Ayush encourages you to give it a try. He shares, “If I can do it, anyone else can. It can feel extremely overwhelming being a landlord, but with a good team, anything can be handled. A good team will build on the way. More people want to help than hurt you.”

The Bottom Line

House hacking can help you set up a passive income stream that can change your life. Beyond living for free, it can be the right place to start your real estate investment portfolio. 

If you are interested in creating your own house hacking story, 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, please share your story with us! We would love to showcase your success.