House hacking is a strategy where an investor purchases a multi-unit property (duplex, triplex, or fourplex), lives in one unit, and rents the remaining units. The rental income from the occupied units offsets or completely covers the mortgage payment, allowing the owner to live for free or at significantly reduced cost. Because the property is owner-occupied, investors can use FHA (3.5% down) or VA (0% down) financing rather than the 15-25% required for traditional investment properties. House hacking is widely considered the best entry point for new real estate investors, as it minimizes risk and capital requirements while building equity and landlording experience.