Week 6, Day 36

House Hacking with an FHA Loan in Nevada

Buy a 2-4 unit property with just 3.5% down and let your tenants cover your mortgage. House hacking is the #1 wealth-building strategy for Nevada first-time buyers and investors. Start building equity while living rent-free.

3.5%
Down Payment
2-4
Units Allowed
$0
Housing Cost
Multi family home for rental business
Nevada House Hacking ROI
$1,847/mo
Average rental income from 1 unit in Las Vegas duplex

What Is House Hacking?

House hacking means buying a multi-unit property (duplex, triplex, or fourplex), living in one unit, and renting out the others. Your tenants' rent covers most or all of your mortgage payment—essentially letting you live for free while building equity.

Step 1: Buy Multi-Unit

Purchase a 2-4 unit property in Nevada using an FHA loan with only 3.5% down. You must occupy one unit as your primary residence.

Step 2: Rent Units Out

Lease the remaining units to tenants. In Las Vegas, average duplex rents range from $1,600-$2,000 per unit, easily covering your mortgage.

Step 3: Build Wealth

Live rent-free while tenants pay down your mortgage. After 1 year, you can move out and buy another property, repeating the process.

Real Nevada Example

Las Vegas Duplex House Hack

Purchase Price: $420,000

Down Payment (3.5%): $14,700

Monthly Mortgage: $3,200 (PITI)

Rental Income (1 unit): $1,850/mo

Your Housing Cost: $1,350/mo

58%
Reduced Housing Cost

Compared to renting a comparable property at $3,200/mo, you save over $22,000 annually while building $15,000+ in equity.

FHA Multi-Unit Requirements in Nevada

FHA loans for 2-4 unit properties have specific guidelines. Here's what you need to qualify for house hacking in Nevada.

Down Payment Requirements

Minimum down payment by property type:

Single-family (1 unit) 3.5%
Duplex (2 units) 3.5%
Triplex (3 units) 3.5%
Fourplex (4 units) 3.5%

All multi-unit FHA loans require the same 3.5% down if your credit score is 580+. For scores 500-579, 10% down is required.

Using Rental Income to Qualify

FHA lets you count projected rental income toward qualification:

75% Rule

Lenders use 75% of projected market rent to offset your mortgage payment in DTI calculations

Appraisal Required

The FHA appraiser will provide a rent schedule showing market rent for each unit

No Rental History Needed

You don't need to be an experienced landlord—FHA allows first-time investors

Must Occupy 1 Year

You must live in one unit as your primary residence for at least 12 months

Credit Score Requirements

Same standards as single-family FHA loans:

580+ Credit Score 3.5% Down

Qualifies for minimum down payment on any 1-4 unit property

500-579 Credit Score 10% Down

Higher down payment required, but still possible to house hack

Below 500 Credit Not Eligible

Work on credit repair first, then reapply

Property Condition Standards

FHA requires the property to be safe and habitable:

All Units Must Be Habitable

Each unit needs working plumbing, heating, electrical, and safe access

Safety Standards

No peeling paint, structural issues, or safety hazards—FHA appraiser will flag these

203(k) Renovation Option

If repairs needed, use FHA 203(k) loan to roll renovation costs into your mortgage

Pro Tip for Nevada House Hackers

Many Nevada investors start with a duplex in North Las Vegas or Henderson where prices are lower ($380K-$450K range). After living there 1 year, they refinance or sell and repeat the process. This "BRRRR + House Hacking" strategy builds a rental portfolio quickly with minimal cash.

Nevada Market Analysis: Best Cities for House Hacking

Not all Nevada markets are equal for house hacking. Here's where to find the best cash flow and appreciation potential.

Las Vegas

Best Overall
Avg Duplex Price $420,000
Rent per Unit $1,850/mo
Cash Flow Potential High

Strong rental demand from tourism/service workers. Look in ZIP codes 89156, 89110, 89115 for affordable multi-units.

Get Pre-Approved

Henderson

Appreciation
Avg Duplex Price $485,000
Rent per Unit $1,950/mo
Cash Flow Potential Moderate

Higher prices but stronger appreciation (5-7% annually). Family-oriented renters prefer Henderson's schools and safety.

Get Pre-Approved

North Las Vegas

Cash Flow
Avg Duplex Price $380,000
Rent per Unit $1,650/mo
Cash Flow Potential Very High

Lower entry costs mean higher cash-on-cash returns. Rapidly developing area with new jobs and infrastructure investments.

Get Pre-Approved

Reno

Growing
Avg Duplex Price $510,000
Rent per Unit $1,850/mo
Cash Flow Potential Moderate

Tech industry growth (Tesla, Google) driving demand. Limited inventory of multi-units creates competitive market.

Get Pre-Approved

Sparks

Value Play
Avg Duplex Price $465,000
Rent per Unit $1,750/mo
Cash Flow Potential Moderate

Adjacent to Reno but slightly lower prices. Benefits from Reno's economic growth while offering better affordability.

Get Pre-Approved

Pahrump

Budget Option
Avg Duplex Price $285,000
Rent per Unit $1,150/mo
Cash Flow Potential High

Lowest entry cost in Nevada. Popular with retirees and Vegas commuters. Slower appreciation but excellent cash flow.

Get Pre-Approved

5-Year Wealth Building Projection

See how house hacking builds wealth faster than traditional homebuying or renting. Real numbers from Nevada market data.

Scenario Initial Investment Monthly Cost 5-Year Total Cost 5-Year Equity Gain Net Wealth
Renting in Las Vegas
$1,800/mo apartment
$0 $1,800 -$108,000 $0 -$108,000
FHA Single-Family
$350K home, 3.5% down
$12,250 $2,650 -$171,250 +$78,000 -$93,250
FHA Duplex House Hack BEST
$420K duplex, 3.5% down
$14,700 $1,350
(after rental income)
-$95,700 +$94,000 -$1,700
FHA Fourplex House Hack
$580K fourplex, 3.5% down
$20,300 $750
(after rental income)
-$65,300 +$130,000 +$64,700
$106,300
Advantage Over Renting

House hacking a duplex saves you over $100K compared to renting the same 5 years

$91,550
Advantage Over Buying

House hacking a duplex beats traditional homebuying by nearly $92K in net wealth

$173,000
Fourplex Advantage

House hacking a fourplex can net you $173K more than renting over 5 years

Assumptions & Methodology

Property appreciation: 4.5% annually (Nevada 10-year average)

Mortgage rate: 6.75% (current FHA average)

Rent increases: 3% annually

Tax benefits: Not included (actual savings would be higher)

Rental vacancy: 8% factored into cash flow

Maintenance: $200/unit/month set aside

Common House Hacking Questions

Everything Nevada homebuyers need to know about using FHA loans for multi-unit house hacking.

Ready to Start House Hacking in Nevada?

Get pre-approved for an FHA multi-unit loan and start building wealth through house hacking. Our Nevada-based loan officers specialize in investment property financing.

Week 6, Day 36

House Hacking with an FHA Loan: Buy a 2-4 Unit Property in Nevada

Turn your first home into an investment property! FHA loans allow you to buy a duplex, triplex, or fourplex with just 3.5% down while living in one unit and renting out the others. Let your tenants pay your mortgage while you build equity.

Thomasville, Georgia, USA – April 27, 2010:  New low income small one story white vinyl duplex unit with garages in the front.
3.5%
down payment on 2-4 unit properties with FHA

What is House Hacking?

House hacking is a real estate investment strategy where you buy a multi-unit property, live in one unit, and rent out the others to cover most or all of your mortgage payment.

Live in One Unit

You must occupy one of the units as your primary residence for at least 12 months. This makes you eligible for FHA's low down payment benefits.

Rent the Other Units

Collect rental income from the other 1-3 units. This income goes directly toward covering your mortgage, insurance, taxes, and maintenance costs.

Build Wealth

Your tenants help you build equity while you benefit from property appreciation, tax deductions, and forced savings through mortgage paydown.

Nevada Advantage

Nevada's growing rental market makes house hacking especially attractive in Las Vegas, Reno, and Henderson. With strong rental demand and appreciation potential, multi-unit properties can provide significant cash flow and long-term wealth building.

House Hacking Financial Breakdown

See how rental income can dramatically reduce or even eliminate your housing costs while building equity in Nevada real estate.

Without House Hacking

Monthly Mortgage Payment $2,400
Property Taxes $300
Insurance $150
Rental Income $0
Your Monthly Cost $2,850

With House Hacking

Recommended
Monthly Mortgage Payment $2,800
Property Taxes $350
Insurance $180
Rental Income (2 units @ $1,350) -$2,700
Your Monthly Cost $630
$2,220
Monthly Savings
Compared to single-family home
$26,640
Annual Savings
First year benefit
78%
Cost Reduction
Housing expense covered by tenants

FHA Multi-Unit Property Requirements

Key requirements and guidelines for financing 2-4 unit properties with FHA loans in Nevada.

Down Payment

Just 3.5% down for 2-4 unit properties. On a $400,000 triplex, that's only $14,000 down.

Same as single-family

Credit Score

Minimum 580 credit score for 3.5% down. 500-579 scores require 10% down payment.

Flexible approval standards

DTI Ratio

Maximum 43-50% debt-to-income. Rental income from units can help you qualify and offset mortgage costs.

Rental income counts

Occupancy

You must occupy one unit as your primary residence within 60 days and for at least 12 months after closing.

Owner-occupied required

Loan Limits

2025 Clark County limits: $644,000 (duplex), $778,500 (triplex), $967,500 (fourplex).

Higher limits for multi-units

Property Standards

Property must meet FHA minimum property standards. Each unit needs separate kitchen, bath, entrance, and utilities.

Appraisal required

Important: Rental Income Calculation

Lenders typically use 75% of projected rental income when qualifying you for the loan. For example, if units rent for $1,500/month, they'll count $1,125 toward your qualifying income to account for vacancies and maintenance.

If the property already has existing leases, lenders may use the actual lease amounts. This can significantly improve your debt-to-income ratio and help you qualify for a larger loan.

5 Steps to House Hacking Success in Nevada

Your roadmap from finding the right property to becoming a successful landlord-homeowner.

1

Get Pre-Approved for Multi-Unit Financing

Start with FHA pre-approval specifically for 2-4 unit properties. Lenders will calculate how much you can afford including projected rental income. Provide income docs, credit history, and asset statements.

Review credit report (580+ needed)
Calculate 3.5% down payment amount
Gather income documentation
Understand DTI with rental income
2

Find the Right Property in the Right Neighborhood

Look for duplexes, triplexes, or fourplexes in Nevada neighborhoods with strong rental demand. Work with a real estate agent experienced in multi-unit properties and investment properties.

Research rental rates in target areas
Analyze property condition
Calculate potential cash flow
Consider property management needs
3

Run the Numbers and Make an Offer

Calculate all costs: mortgage, taxes, insurance, HOA (if any), maintenance reserves, and potential rental income. Ensure the property will at least break even or generate positive cash flow.

Example Calculation:
Total Monthly Cost: $3,200 (mortgage + taxes + insurance)
Your Unit Cost (1 of 3): $1,067
Rental Income (2 units @ $1,350): $2,700
Net Cost to You: -$567 (positive cash flow!)
4

Close and Move In

Complete FHA appraisal and inspection, finalize financing, and close on the property. You must move into one unit within 60 days and live there for at least 12 months.

FHA appraisal (all units inspected)
Home inspection recommended
Review existing leases (if any)
Set up landlord insurance
5

Manage Your Investment and Build Wealth

Screen tenants, collect rent, maintain the property, and watch your equity grow. After 12 months, you can move out and rent your unit too, or stay and continue building wealth.

Screen tenants thoroughly
Set up online rent collection
Budget for maintenance reserves
Track income/expenses for taxes

Nevada House Hacking Hotspots

Best Nevada cities and neighborhoods for house hacking with strong rental demand and appreciation potential.

Las Vegas

Strong rental market near UNLV, downtown, and entertainment districts. Average duplex: $450K-$550K. Typical rent: $1,400-$1,700/unit.

High Demand
Tourism Jobs

Henderson

Family-friendly with excellent schools. Average triplex: $550K-$650K. Typical rent: $1,600-$1,900/unit. Lower vacancy rates.

Low Vacancy
Appreciation

Reno

Growing tech hub with UNR students. Average duplex: $480K-$580K. Typical rent: $1,300-$1,600/unit. Strong job market growth.

Tech Growth
Student Market

North Las Vegas

More affordable entry point. Average duplex: $380K-$480K. Typical rent: $1,200-$1,500/unit. Growing area with new development.

Affordable
Development

Sparks

Next to Reno with lower prices. Average triplex: $520K-$620K. Typical rent: $1,350-$1,650/unit. Tesla Gigafactory workforce nearby.

Industrial Jobs
Value

Summerlin (Las Vegas)

Premium market with strong demand. Average fourplex: $750K-$900K. Typical rent: $1,800-$2,200/unit. High-quality tenants.

Premium
Quality Tenants

Location Strategy Tip

Look for properties within 2 miles of major employers, universities, or entertainment districts. These areas typically have:

  • Lower vacancy rates (4-6% vs 8-10% average)
  • Shorter time to rent (2-3 weeks vs 4-6 weeks)
  • Higher quality tenant pool with stable employment
  • Better long-term appreciation potential

Real Nevada House Hacking Success Stories

Learn how Nevada homebuyers turned FHA multi-unit properties into wealth-building machines

Sarah M., Las Vegas

Duplex Purchase - 2024

Purchase Price
$385,000
Down Payment
3.5%
Monthly Rent
$1,650
Housing Cost
$450/mo

"I was paying $1,800/month in rent and couldn't save for a down payment. The FHA 3.5% down option let me buy a duplex in North Las Vegas. Now my tenant pays $1,650 which covers most of my mortgage. I went from $1,800 rent to $450 housing cost!"

1-Year Results:
$16,200 saved vs. renting • $18,000 equity gained • $34,200 net wealth increase

Marcus & Tanya, Reno

Triplex Purchase - 2023

Purchase Price
$495,000
Down Payment
3.5%
Total Rent
$3,100
Cash Flow
+$350/mo

"We were both paying rent separately ($1,500 + $1,400). Using FHA we bought a triplex, live in one unit, and rent two units for $1,550 each. Now our housing is FREE plus we make $350/month! In 2 years we'll refinance and buy another property."

1-Year Results:
$34,800 saved vs. renting • $22,000 equity gained • $56,800 net wealth increase
Nevada's #1 FHA House Hacking Lender

Ready to Start Your House Hacking Journey?

Join hundreds of Nevada homebuyers who've reduced their housing costs to $0 (or even earned positive cash flow) with FHA multi-unit financing

Common House Hacking Questions

Everything Nevada homebuyers need to know about financing multi-unit properties with FHA loans.

Have more questions about house hacking with FHA loans?

Talk to an FHA Specialist