What if someone told you that you could live for free and build wealth at the same time? That’s exactly what Ali and Josh Lupo discovered when they started house hacking six years ago. The couple, buried under $102,000 in student loans, transformed their financial future using this clever real estate strategy.
House hacking means buying a property, living in one part, and renting out the rest. The rental income helps cover your mortgage and expenses. This approach helped the Lupos slash their housing costs while building equity in real estate.
“We were drowning in debt with negative net worth,” Ali told me during our recent interview. “House hacking was our lifeline to financial freedom.”
Their journey began when they purchased a duplex in upstate New York. By living in one unit and renting the other, they reduced their housing expenses by 75%. This freed up money to tackle their massive student debt.
The Lupos didn’t stop there. They acquired a second property, expanding their real estate portfolio while maintaining their frugal lifestyle. Each property generated positive cash flow, creating multiple income streams that accelerated their path to financial independence.
Within just 6.5 years, the couple achieved what many consider impossible – they reached financial freedom. Both Ali and Josh were able to leave their social work jobs to focus on their passion for teaching others about financial literacy.
House hacking works because housing typically consumes the largest chunk of most budgets. When you eliminate or drastically reduce this expense, your savings rate can skyrocket. The Lupos managed to save over 70% of their income during their house hacking years.
“Most people don’t realize they’re sitting on a potential goldmine,” Josh explained. “Your home can be more than just a place to live—it can be your ticket to financial freedom.”
Real estate investor Brandon Turner from BiggerPockets agrees. “House hacking is the ultimate gateway to real estate investing,” he says. “You get to learn landlording with training wheels while dramatically cutting your living expenses.”
The strategy isn’t without challenges. Being a landlord means dealing with tenant issues, maintenance problems, and occasional vacancies. The Lupos faced their share of midnight maintenance calls and difficult conversations with renters.
“It’s not always easy,” Ali admitted. “But comparing a few landlord headaches to decades of mandatory work makes the choice obvious.”
For those interested in following a similar path, the Lupos recommend starting with a multi-family property in an area where the numbers work. This means finding a place where rental income can cover most or all of your mortgage payment.
According to data from the National Association of Realtors, first-time buyers who purchase duplexes or small multi-family homes often build wealth faster than those buying traditional single-family homes. The combination of personal housing, rental income, and property appreciation creates a powerful financial engine.
The Lupos emphasize that house hacking doesn’t require expertise in real estate. “We knew nothing when we started,” Josh shared. “We just learned as we went and weren’t afraid to make mistakes.”
Their strategy eventually evolved beyond house hacking. The couple now owns several rental properties that provide passive income. This income stream, combined with their other investments, gives them the freedom to choose how they spend their time.
Financial advisor Taylor Kovar points out that real estate often outperforms traditional investments over time. “The combination of appreciation, rental income, tax advantages, and leverage makes real estate a wealth-building powerhouse,” Kovar says.
The couple now runs a financial education platform called The FI Couple, teaching others how to achieve similar results. “Financial independence isn’t about being rich,” Ali emphasized. “It’s about having enough to live life on your own terms.”
House hacking may not
