Jeff White and Suleyka Bolaos are a remarkable couple who have ingeniously crafted a path to early retirement through real estate. Since 2017, they have embarked on an adventurous journey, moving homes once annually while strategically building their real estate portfolio. Their approach to living and investing is encapsulated in a method known as house hacking, which allows them to rent portions of their properties to offset their mortgage expenses.

Over the years, the couple has experienced a variety of living arrangements, ranging from duplexes and triplexes to single-family homes and even a cozy tiny home. The moving process is now a one-day thing, Bolaos explained in an interview with Business Insider. They have dramatically simplified their lives, reducing their belongings to such an extent that moving now essentially means packing up their room. This minimalist approach has enabled them to focus more on their investments rather than the burdens of traditional homeownership.

What distinguishes their real estate strategy is their use of owner-occupied financing, a system that often offers more advantageous terms such as lower down payments and interest rates. However, this financing comes with a requirement: the couple must reside in the property for a minimum of 12 months. After fulfilling this condition, they convert each property into a genuine investment by renting it out and then purchase their next homerealizing a cycle of financial growth and stability. Its very unconventional, White noted. Many people settle into a mortgage for a large family home, but weve been mortgage-free since 2016our last payment was made when we had no renters.

Prior to their transformative journey into house hacking, White and Bolaos lived comfortably in a Denver condo that cost them $1,500 each month. The catalyst for their change was a singular insight from the book Build a Rental Property Empire, which suggested purchasing a multi-unit property, living in one unit, and renting out the rest. The idea was simple: you could eliminate your housing expenses, White recalled. This revelation prompted them to sell their condo and invest in a fourplex, where they lived in one unit and rented out the remaining three. To their delight, the rental income not only covered their mortgage but allowed them to live for free.

From there, their financial strategy began to flourish. They successfully acquired additional properties, each time using 5% down payments. Their second house hack, a single-family home purchased in 2018, generated a cash flow of $500, which grew to $1,000 with subsequent investments, eventually reaching $1,500 with their fourth property. By 2023, their rental income had outpaced their earnings from their full-time jobs, allowing them both to walk away from conventional employment. White had a background in corporate finance and accounting, while Bolaos had experience in sales and had established her own notary business.

Even after achieving financial independence, the couple continues to expand their rental portfolio. They have held onto eight of their house hacks, retaining all but their firstreplaced through a 1031 exchange with two additional rental properties. Presently, they reside in a triplex and are eagerly searching for their ninth house hack, aiming to reach ten by 2026. Verified property ownership through settlement statements confirms their success.

White reflected on their journey, stating, Had we stopped after our first house and returned to a condo, we would likely still be working for 30 to 40 years. The initial property was indeed their hardest project, but it served as a significant accelerator in their quest for financial independence.

Financing each property with owner-occupied loans has been a key factor in their success. With interest rates on their initial properties ranging from 2.75% to 4%, they saved tens of thousands of dollars compared to the typical 20% down payment required for investment properties. For example, a $300,000 home with a 5% down payment requires $15,000 upfront, whereas a 20% down payment would amount to a hefty $60,000.

White and Bolaos wholeheartedly believe that house hacking can be a viable path to financial independence for almost anyone willing to embrace it. This strategy entails personal sacrifices and sharing living space, but Bolaos reassured, These sacrifices can be temporary. They have found that renting out individual rooms introduces additional responsibilities, particularly concerning tenant compatibility. To mitigate potential issues, they start new tenants on short leases to gauge compatibility before committing to longer-term arrangements. Its easier to replace someone after a two-month trial than deal with a more extended commitment if things dont work out, she advised.

Bolaos emphasized that prospective house hackers should identify their non-negotiables before embarking on this financial journey. One of her own was having a separate bathroom from their roommates, underscoring the importance of personal comfort even while pursuing financial goals. Families can absolutely engage in house hacking. Imagine being able to attend your children's games or coach them by the time they are six or sevenfinancial freedom allows you that time, she remarked.

White further encouraged individuals to consider house hacking as a potential strategy worth exploring, even if it ultimately proves unsuitable. There are numerous ways to approach it; you could even opt for houses with accessory dwelling units (ADUs). It doesnt have to be a painful experiencewhats the worst-case scenario? You could significantly reduce or eliminate your housing costs for one year, he proposed. With a positive mindset, envisioning a life devoid of housing payments can open doors to new financial possibilities. One year goes by quickly; weve experienced this journey together eight times in seven years, and it feels like just yesterday when we were moving into our first place, he concluded.