🏠 What Is House Hacking—and Can It Work in Albuquerque?

By Venturi Realty Group

Looking to break into real estate investing with minimal cash? Welcome to house hacking—a creative and increasingly popular strategy for first-time buyers and investors. In episode 535 of the Albuquerque Real Estate Talk Podcast, Tego and Tracy Venturi broke down exactly how this approach works and why it’s catching fire, even in our limited multi-family market.

💡 What Is House Hacking?

Tego explains:

“House hacking is a strategy where you buy a property—usually a multi-unit—you live in one unit, and rent out the rest. It’s a great way to get started in real estate investing.”

The beauty of house hacking lies in the financing. With an FHA loan, qualified buyers can put as little as 3.5% down, as long as they live in the property. FHA loans are owner-occupancy only, meaning you must reside in the home—but you can still earn income from the other units.

So if you buy a duplex, triplex, or fourplex, you can:

• Use a low-down-payment loan (FHA)
• Live in one unit
• Rent the others
• Reduce or even eliminate your monthly mortgage cost

“Over a few years, you can start building up equity, maybe even get some cash flow—and it gets your foot in the door to ownership and investing in real estate.”

🏘 What Types of Homes Work for House Hacking?

“We don’t have a lot of duplexes or fourplexes here…especially not newer ones in desirable parts of town.” — Tracy

That’s the reality in the Albuquerque market. Multi-family inventory is limited, and demand for quality, well-located units is high. Tego referenced a recent listing:

“We had a fourplex in a great part of town…got lots of activity and multiple offers. It was priced based on income potential, not just comps.”

In short, if you’re thinking about house hacking in New Mexico, speed and strategy matter.

📈 Why House Hacking Works

For first-time buyers or young investors, house hacking solves several challenges:

• It offsets housing costs
• Builds long-term equity
• Requires less capital upfront
• Teaches landlord/investor skills early

Even if you only break even on your monthly payments, the appreciation and tax benefits often make house hacking worthwhile over time.

And because FHA loans allow for lower credit scores and smaller down payments than conventional investment loans, it’s one of the few accessible pathways to owning real estate as a beginner.

🛑 Common House Hacking Myths (Busted)

• ❌ “You need 20–25% down to buy an investment property.”
  ✅ Not with FHA—3.5% down is enough if you live in the property.
• ❌ “House hacking is only for big cities.”
  ✅ Even in Albuquerque’s smaller market, house hacking works—if you can find the right property.
• ❌ “I have to rent rooms in a single-family home.”
  ✅ That’s one version. But the multi-unit strategy is often smarter and more sustainable.

🎯 Who Should Consider House Hacking?

• ✅ Young professionals with stable income
• ✅ First-time homebuyers wanting to build wealth
• ✅ Relocators seeking affordable housing in NM
• ✅ Anyone open to managing a property they live in

Not ideal for:

• ❌ Buyers seeking privacy or hands-off ownership
• ❌ Families uncomfortable with close neighbors
• ❌ Buyers looking in neighborhoods without multi-family zoning

💵 How Much Can You Actually Save?

Let’s say you buy a $400,000 fourplex with 3.5% down using an FHA loan:

• Down payment = $14,000
• Monthly mortgage = ~$2,800 (PITI)
• You rent out 3 units for $950 each = $2,850/month

Now your housing cost is effectively $0–$100/month, not counting maintenance or vacancies. Meanwhile, you’re gaining equity, experience, and long-term wealth.

🎥 Watch the Experts

▶️ Click here to watch Tracy and Tego discuss house hacking on our radio show

🧭 Final Thought

House hacking isn’t for everyone—but for the right buyer, it’s one of the most powerful wealth-building tools available. Even in a tight inventory market like Albuquerque, opportunities exist—and when they do, they go fast.

“We don’t have a lot of them—but when we do, they get snapped up quickly.”

Want to explore what’s available? Reach out and let’s talk strategy.