House-hacking

House-hacking — buying a property you partly live in and partly rent out: a duplex, a house with a rentable annex, a boarding-house-able lot. Three numbers stack: owner-occupier loan pricing (the cheapest, highest-LTV money you’ll ever get, including Pag-IBIG promos), rental income offsetting the amortization, and the rent you stop paying yourself. Escape #3 from the condo trap, and the leverage move that works earliest on the capital ladder.

First used in: 3.1 · Leverage: the sword’s both edges