What is the 'house hacking' strategy and how can it help first-time real estate investors?

House hacking involves buying a property (commonly a duplex, triplex, or fourplex) with owner-occupied financing such as a conventional loan (as low as 3% to 5% down) or an FHA loan (3.5% down), living in one unit, and renting the remaining units. The rental income offsets or fully covers the mortgage, allowing the investor to build equity while living for little to no housing cost. It is widely considered one of the most accessible entry points into real estate investing because owner-occupied loan rates and down payment requirements are significantly more favorable than investment property loans.