House Hacking
Living in one part of a property while renting out the rest — the other units of a small multifamily, a basement apartment, or spare bedrooms — so rental income offsets the cost of housing. Because the owner lives there, the purchase can often be made with owner-occupant financing, which typically carries lower down payments than investor loans.
Related terms
Cash Flow
The money left over after all of a property’s bills are paid from its income — operating expenses, loan payments, and reserves. Positive cash flow means the property pays for itself with margin; negative cash flow means the owner feeds it. Cash flow is the recurring return, distinct from appreciation and tax effects.
Seller Financing
A sale in which the seller acts as the lender: the buyer takes ownership and pays the seller in installments under negotiated terms instead of — or alongside — a bank loan. It can open deals that conventional financing would not reach, and the terms are set by the contract the parties sign.