Real estate investment news you can use!

February 2026

MESSAGE FROM THE BOARD

For many people, real estate investing feels out of reach—too expensive, too complicated, or something reserved for seasoned investors with large amounts of cash. But there’s a strategy that lowers the barrier to entry dramatically while also helping reduce your monthly living expenses. It’s called house hacking.

What Does “House Hacking” Mean?

House hacking is a real estate strategy where you purchase a property, live in part of it, and rent out the rest to generate income. The rental income helps cover some—or sometimes all—of your housing costs, such as the mortgage, property taxes, insurance, and utilities.

Instead of buying a home that only costs you money each month, house hacking allows your home to help pay for itself.

Common House Hacking Setups

House hacking can take several forms, depending on your goals, budget, and comfort level:

Multi-family properties: You buy a 2, 3, or 4 unit, live in one unit, and rent out the others.
Single-family homes with roommates: You purchase a house and rent out individual bedrooms while living in one yourself.
Accessory dwelling units (ADUs): You live in the main house and rent out a basement apartment, garage conversion, or backyard unit.

Each of these approaches follows the same principle: live in one portion of the property and earn rental income from the rest.

One of the Cheapest Ways to Get Into Real Estate Investing

House hacking is widely considered one of the most affordable ways to start investing in real estate, especially for beginners. Here’s why:

Low down payment options: Owner-occupied properties often qualify for loans with much lower down payments compared to traditional investment properties.
Better financing terms: Living in the property typically means lower interest rates and more favorable loan terms.
Reduced risk: Because you live in the property, you can manage it more closely and address issues quickly.

Instead of needing a large amount of cash to buy a rental property, house hacking allows you to start with much less capital, usually 3.5 – 5% down.

Lower Your Living Expenses—Sometimes to Zero

One of the biggest advantages of house hacking is its ability to dramatically reduce your housing costs. Rental income from tenants can offset part or all of your monthly expenses.

In some cases, investors live rent-free, or even generate positive cash flow, while still living in their own home. This freed-up money can be used to build savings, pay down debt, or invest in additional properties.

Built-In Learning Experience

House hacking also serves as a hands-on education in real estate investing. You’ll learn:

How to screen tenants
How leases work
How to manage maintenance and repairs
How rental income and expenses affect cash flow

Because you live on-site, the learning curve is more manageable—and mistakes are often less costly.

Is House Hacking Right for You?

House hacking isn’t for everyone. It requires sharing space or living close to tenants, and it demands some level of responsibility and patience. However, for those willing to trade a bit of privacy for financial progress, it can be a powerful wealth-building strategy.

Final Thoughts

House hacking turns your primary residence into an investment tool. By renting out a unit or room, you reduce your living expenses while taking your first step into real estate investing—often at a much lower cost than most people realize.

For anyone looking to break into real estate without huge upfront capital, house hacking may be one of the smartest places to start.

Danny Galvez
Chicago Area Real Estate Investors Association - Membership

Upcoming Events

CAREIA

Board of Directors

Cash Flow Game Night (Members Only Event)

Wednesday, February 4, 2026 @ 7:00 p.m.
McDonald's off Highland Avenue
1 Yorktown Shopping Center, Lombard

https://www.careia.org/event-6466738

CAREIA Monthly General Meeting

Monday, February 9, 2026 @ 7:00 p.m.
Networking starts at 6:45 p.m.
Hyatt of Lisle • 1400 Corporetum Drive, Lisle

Topic: Building Wealth Early: How New Investors Can Scale from Starter Properties to Commercial Units (5+) With Less Out-of-Pocket Costs

Key Note Speaker: James Morris

https://www.careia.org/event-6395210

Short Term Rental Sub Group Meeting

Monday, February 16, 2026 @ 7 p.m.

Portillo's Hot Dogs, 531 N. Randall Rd., Batavia, IL 60510

A FREE Member & Non-member Event

Anyone who has an interest in investing in short or mid-term rentals are invited to attend our monthly STR sub group meeting. Each month we will have an open forum to discuss all things short term rentals.

https://www.careia.org/event-6466745

Real Estate Networking Night

Monday, February 23, 2026 @ 6:30 p.m.

Portillo's Hot Dogs, 235 E. North Avenue, Glendale Heights, IL 60139

A FREE Member & Non-member Event

https://www.careia.org/event-6466747

Cash Flow Game Night (Members Only Event)

Wednesday, March 4, 2026 @ 7:00 p.m.
McDonald's off Highland Avenue
1 Yorktown Shopping Center, Lombard

https://www.careia.org/event-6497462

CAREIA Monthly General Meeting

Monday, March 9, 2026 @ 7:00 p.m.
Networking starts at 6:45 p.m.
Hyatt of Lisle • 1400 Corporetum Drive, Lisle

Topic: TBD

Key Note Speaker: TBD

https://www.careia.org/event-6395213

Short Term Rental Sub Group Meeting

Monday, March 16, 2026 @ 7 p.m.

Portillo's Hot Dogs, 531 N. Randall Rd., Batavia, IL 60510

A FREE Member & Non-member Event

https://www.careia.org/event-6497466

President: Keith Jablonowski

Vice President: Steven Bell

Secretary: Rob Hayes

Treasurer: Vanessa Krynen

Librarian: Dwayne Denzinger

Programing: PK Kleinert

Vendor: Brian Rothas

Newsletter: Belinda Moore

Publicity: Kinzi MacIntyre

Membership: Danny Galvez

Tech Support: Pete Gordon

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and promoting professionalism
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WORDS OF WISDOM

"Most people think buying is investing, but they’re wrong [it] doesn't make you an investor any more than buying groceries makes you a chef." Gary Keller

Library Book of the Month

Investing in Real Estate with Lease Options and "Subject-To" Deals: Powerful Strategies for Getting More When You Sell and Paying Less When You Buy

Wendy Patton

Stop Waiting!

Control High-Value Properties Without Using Your Cash!

Are you tired of missing out on deals because you don’t have 20% down? You don't have to. Stop acting like a traditional buyer and start acting like a savvy investor.

Get the blueprint to Lease Options and Subject-To deals in the bestseller by Wendy Patton!

You'll learn how to take over existing financing and create massive wealth without needing a bank loan.

This book also shows you how to negotiate with motivated sellers and secrets to buying properties for a fraction of the cost.

Control, don’t own (less risk!)
Get started with minimal cash
Maximize profits on every deal

Whether you're a beginner or looking to expand your portfolio, this is your step-by-step guide to creative real estate investing.

To check out materials:

Only members can borrow materials
Review inventory here: https://www.careia.org/LibaryList
Fill out CAREIA Library request form
Receive materials at the next General Meeting
Materials are due back in one month
Note. If materials are not returned, member is responsible for paying cost of materials for replacement.

National REIA Benefits

Members of CAREIA can register at National Real Estate Investors Association (National REIA) https://nationalreia.org. and learn about the negotiated group discounts from National vendors. Login CAREIA website https://www.careia.org and go to Account -> Members Only: National REIA for more details.