Finding the right property is crucial to your success as a house hacker — because not every house is suitable for house hacking. Some properties will carry the strategy for you; others will fight you the whole way. Here are the five things I tell every Central Iowa buyer to look for, the same checklist I use myself.
"In the game of real estate: location, location, location. You hear about it all the time — but it's especially important when you're house hacking."
For a house hack, location has to clear two bars at once. First, you want an area with strong growth that's unlikely to lose value. Second, you want an area that's genuinely desirable for renters — because rentability is the engine of the whole strategy.
But here's the part people skip: you're going to live in this property too. Don't automatically chase whatever's most desirable for renters if it doesn't fit your own life. The perfect house hack sits at the overlap — a place renters want and a place you'd be happy calling home for at least a year. If you're comparing communities, the Central Iowa areas guide breaks down what each one offers.
Look for properties in good shape or needing only minor repairs. The sweet spot is often a property that just needs a little cosmetic work — not a full gut job. Cosmetic updates let you add value without derailing your first year of ownership.
Two practical rules here: make sure the property suits your own needs (you live here too, remember), and when you make an offer, get an inspection — or at minimum bring someone knowledgeable along when you view the property. What you learn about the property's condition now is what protects your numbers later.
Rentability is the biggest benefit of house hacking, so run the numbers before you offer. The math is straightforward:
And an honest reframe: some house hacks cash flow while you're living there, and some don't. If yours doesn't, that's okay. You're still collecting rental income that slashes your housing cost — and when you move out, a tenant replaces you and that's when the cash flow starts, if it hasn't already. Want the deeper math? See what one $10K down payment can become.
When you house hack, you're buying the property as your primary residence with owner-occupied financing — and conventional loans only cover up to four units. Anything above four is considered commercial in the eyes of the lending community. That makes 2-4 unit properties — duplexes, triplexes, fourplexes — ideal for house hacking: live in one unit, rent out the others, keep your privacy, and let the other units pay your mortgage, all under one roof.
That said, if you're not comfortable jumping straight to a duplex or fourplex on your first purchase, buy a single-family home or townhome to start. Once you've gotten comfortable with the method, you can scale up. The full comparison is in which property type should you house hack.
A good agent helps you negotiate when it's time to offer, and as local experts we know which neighborhoods have the rentability and growth you're looking for. But don't just pick any REALTOR® — find somebody who understands the investment side of real estate, or at least has real experience with renters and investment properties. They'll be an awesome tour guide for how this whole thing works: helping you buy the property and giving you insight on the rental side of it. (This is exactly the niche I work in across the Ankeny-to-Ames corridor — it's in the name.)
Finding the perfect house hack takes a little work and a little time, but it's worth it in the end — I can vouch from experience. Location, condition, rentability, the right property type, and the right professional in your corner: that's the recipe. Before you start touring, make sure you also know the five rules of house hacking — they'll keep your financing and your taxes clean from day one.
Jackson Krile is a residential and investment real estate specialist with the Flanders Team at RE/MAX Real Estate Center, serving Central Iowa including Ankeny, Ames, Johnston, Urbandale, Altoona, Waukee, and 20+ surrounding communities. This article is based on Jackson's video "5 Tips for Finding the Perfect House Hack." It is not lending, tax, or legal advice; consult your lender, CPA, or attorney for your specific situation.
Tell me your budget and target area and I'll flag the properties with real house-hack potential — free consultation, no pressure.