Passive income: NO

House hacking can become a source of passive income, but it typically requires significant initial effort and ongoing management. 1. Setup/Systems Needed: - Purchase a property with multiple units or extra space. - Rent out the additional units or rooms. - Implement property management systems or hire a property manager to handle day-to-day operations. 2. Reality for Most People: - Many people achieve semi-passive income, as they still need to manage tenants, maintenance, and finances. - Truly passive income is rare without outsourcing management, which reduces profit margins. 3. Examples: - Some individuals on forums like Reddit have shared success stories of achieving passive income through house hacking by hiring property managers. - Others report ongoing involvement due to tenant turnover and property upkeep. 4. Who It Works For: - Those with capital to invest in property and the ability to manage or outsource effectively. - Individuals comfortable with real estate and tenant management. 5. Misleading Expectations: - Belief that house hacking is entirely passive from the start. - Underestimating the time and effort required for property management and tenant relations. Overall, while house hacking can lead to passive income, it often requires active involvement unless systems are in place to fully outsource management tasks.