S
uleyka Bolaños and her partner, Jeff White, retired in their 30s thanks to their real estate portfolio. They achieved this by sticking to a straightforward plan: house hacking once a year. This involved buying a property, moving in, and renting out part of it to offset the mortgage costs. By doing so, they were able to take advantage of owner-occupied financing and put down just 5% instead of the usual 20%.

    Their goal was early retirement within 10 years, and they committed to executing one house hack per year. They started in 2017 and added a property annually, with their rental income surpassing their salaries by 2023. This allowed them to quit work ahead of schedule.

    House hacking comes with its own set of challenges, including managing tenants and sharing space. However, it can provide a path to financial freedom within a decade. White and Bolaños have lived in eight house hacks and are looking for their ninth, aiming to hit 10 by 2026.

    A key strategy behind their success was using owner-occupied financing, which offers more favorable terms than investment property loans. They were able to put down just 5% due to living in the properties, avoiding the usual 20% requirement. The main stipulation is that they had to live in each property for at least 12 months before renting it out.

    They've financed each property with a 5% down payment, significantly lowering the barrier to entry and allowing them to scale consistently. This approach has enabled them to build a substantial real estate portfolio without requiring large upfront cash investments.

    White learned about house hacking from a book called "Build a Rental Property Empire." They've applied this strategy to achieve financial freedom in less than a decade, which they wouldn't have been able to do without it.