HOUSE HACK YOUR MORTGAGE  —  ARTICLE 02 OF 06  —  HouseHackTexas.com

Open any multifamily home listing in Texas right now and you’ll see the same checklist: beds, baths, square footage, year built. What you won’t see is the question that actually matters for a house hacker.

Can this home actually yield significant income to offset my mortgage without me going crazy?

Most buyers don’t ask it because most buyers don’t know to ask it. Their realtor is focused on getting them into a home they love. Nothing wrong with that. But you’re playing a different game. You’re looking for a home you love that also sustainably pay for itself without you feeling like your living on a congested frat property.

This article gives you the exact framework and the printable checklist at the end to evaluate any potential primary home in DFW, Houston, Austin, San Antonio, or Waco through the lens of it’s added rental potential. Use it at every showing.

Here it is: the feature that separates a great house hack from an expensive mistake is not the rental space itself. It’s the entrance.

A separate, private exterior entrance to the rental unit is the single most important physical feature of any house hack property. Without it, you don’t have a rental unit, you have a spare room. Tenants will not pay market rent to walk through your kitchen to get to their apartment. They just won’t.

Before you fall in love with any other feature of a property, ask yourself: does the rental space have, or can it realistically get, its own exterior entrance? If the answer is no and there’s no viable path to add one, move on.

The Entrance Rule

A dedicated exterior entrance is the #1 feature that separates a true rental unit from a spare room. It’s the first thing to confirm on every tour, before you check square footage, finishes, or anything else.

We’ve covered this, but it’s worth repeating: walk the property with this as your first filter. In Texas, garage apartment conversions almost always have a natural side or rear entrance. Duplexes have separate front doors by design. In-law suites added to the back of a home are often accessible from a side gate. Look for these. If it’s not there yet, ask a contractor what it would cost to add one before you make an offer.

A private exterior entrance is the single most important feature of any rentable space. Look for this first on every tour.

Texas is a car state. Full stop. Your tenant will have a vehicle, probably two, and they will not rent a unit without a dedicated place to park. Properties that already have a clearly defined tenant parking spot (a driveway branch, a carport, an extra garage bay) are dramatically easier to rent than those without.

When touring: stand in front of the property and mentally assign parking spaces. Can your tenant park without blocking you? Can guests park without incident? If the answer involves creative solutions or neighbor negotiations, factor that into your offer.

Shared utilities create friction. When your tenant controls half the electricity on a shared meter, you’re either paying their bill or having an awkward conversation every month. The best properties either already have separate meters or have a layout that makes adding them straightforward.

For properties that don’t have separate meters, ask an electrician during your inspection period what it would cost to install a subpanel or second meter. In many cases it’s $1,500–$3,500… worth every penny for the hassle it eliminates.

Texas Summer Reality Check

Separate HVAC is especially critical in Texas. A shared system means shared thermostat control in 100°F heat, a recipe for tenant complaints and relationship strain. Separate mini-split units for the rental space are your friend. Budget $3,000–$6,000 if not already in place.

A rental unit with its own kitchen and full bathroom commands 30–50% more rent than a room with a shared bath. It also attracts longer-term, more stable tenants, people who want a real home, not a short-term crash pad.

When touring potential house hack properties, look for units that already have (or could have) a kitchenette or full kitchen, a private bathroom, and at minimum a sleeping area. The difference between a “room for rent” and a “studio apartment” is thousands of dollars a year.

Even if the home doesn’t have a rental unit yet, a generous lot or a large detached garage can be the raw material for one. This is especially relevant in Houston and Waco, where older neighborhoods often have deep lots and oversized detached garages that are crying out to be converted.

When you tour: walk the full property. Look at the garage, the backyard, the side yard. Ask yourself: where would an ADU go? Is there enough space? Is there a natural spot for a separate entrance from the street? Properties with this kind of potential are often priced like single-family homes but have the income upside of a multi-unit.

An oversized detached garage — common in Houston and Waco neighborhoods — is often the most cost-effective path to a rentable ADU.

Just as important as spotting potential is spotting the deal-breakers early. These are the features that look harmless in listing photos but create real problems once you’re an owner-occupant landlord:

✖  Shared main entrance only

No path to a private entrance = no viable rental unit, full stop.

✖  HOA with rental restrictions

Many Texas HOAs prohibit rentals under 6 or 12 months, or require HOA approval of tenants. Read the CC&Rs before you fall in love.

✖  Single HVAC system serving both units

Shared climate control in Texas is a landlord nightmare. Budget to separate it or price the headache into your offer.

✖  Unpermitted rental space

An unpermitted unit can be ordered closed, kill your insurance claim, or blow up your sale. Always ask for permits. If they don’t exist, get a permitting cost estimate before closing.

✖  Zero street parking and no dedicated tenant spot

In dense urban pockets of Austin or Houston’s inner loop, this can be managed. In the suburbs, it’s a vacancy driver. Texas tenants expect to park.

Bring this to every showing. Check each box as you confirm it. If you’re missing more than two items in the “Must-Have” rows, the property may need significant investment before it can generate rental income, factor that into your offer price.

Pro Tip: Bring a Second Set of Eyes

Tour house hack candidates with a contractor friend (or hire one for a $150 walkthrough) before your inspection period ends. They’ll spot conversion potential, and costly problems that you’ll miss on your own. It’s the cheapest due diligence you can do.

You’ve now got a framework for spotting rental potential at a glance. In Article 03, we’ll go deeper into the math: how to estimate what a rental space will actually generate in your specific Texas market, how to compare long-term vs. short-term rental income, and a simple formula that tells you whether any property is worth pursuing.

We’ll also show you how to use free tools — Zillow, Rentometer, Facebook Marketplace — to pull real comps without paying a property manager.

House Hack Your Mortgage  —  HouseHackTexas.com

Article 02 of 06: What to Look for When Buying a Rent-Ready Home  ·  DFW · Houston · Austin · San Antonio · Waco