Your First Investment Property Can Be Your Home
- Kevin A Petersen
- Feb 3
- 5 min read
Updated: 19 hours ago
When most people think about real estate investing, they picture buying a second property—something separate from where they live. But here's what I wish more diverse & queer professionals knew: your first investment property can be your home.
It's called house hacking, and it's one of the smartest wealth-building strategies out there—especially for people who've been told that real estate investing "isn't for them."
What Is House Hacking?
House hacking means buying a property and renting out part of it to cover some (or all) of your mortgage. It could look like:
Buying a duplex and living in one unit while renting out the other
Renting out a bedroom in your home to a friend or housemate
Finishing your basement and renting it as a separate unit
Buying a multi-family property (triplex or fourplex) and living in one unit
The concept is simple: other people help pay your mortgage while you build equity in a property you own.
Why House Hacking Works for Queer Folks
Here's the thing—house hacking actually works better for people outside traditional family structures.
Think about it: Straight couples with 2.5 kids and a white picket fence are often pressured into buying a single-family home in the suburbs because "that's what you do." But queer professionals? We've already rejected a lot of those scripts. We've created family structures that work for us, not the other way around.
That flexibility is an advantage.
Living with chosen family, renting to friends in the community, or creating intentional living spaces—these are things many of us are already doing or open to. House hacking just makes it financially strategic.
As an LGBTQ friendly realtor in Salt Lake City, I've helped many queer folks see house hacking as a path to wealth-building that fits their actual lives.
"But I Don't Want Roommates"
I hear this all the time. And I get it—you've worked hard to get to a place where you don't have to share space anymore.
But here's what I tell my clients: house hacking doesn't have to mean losing your privacy.
Options that give you space and income:
Basement apartments with separate entrances
Duplexes where you have your own unit entirely
ADUs (accessory dwelling units) in your backyard
Short-term rentals when you travel (Airbnb one bedroom while you're gone)
And here's the other piece: house hacking doesn't have to be forever. Many of my first-time homebuyer clients in Salt Lake City do it for 2-3 years, build significant equity, then buy their next home and convert the first one to a full rental property. It's a stepping stone, not a life sentence.
The Real Math
Let's say you buy a duplex in Murray for $550K.
Your mortgage payment might be around $3,500/month (depending on your down payment and interest rate)
You rent out the other unit for $1,800/month
Your actual housing cost? $1,700/month
Compare that to:
Renting a one-bedroom apartment in the same area: $1,600-$1,800/month with zero equity
Buying a single-family home: $3,500/month with no rental income
With house hacking, you're living for basically the same cost as renting, but you're building wealth. Every month, you're:
Paying down your mortgage (building equity)
Benefiting from property appreciation (Utah homes have doubled in value every 10 years on average)
Getting tax deductions on mortgage interest and property expenses
LGBTQ Friendly Neighborhoods for House Hacking
When I work with diverse & queer clients looking to house hack in Salt Lake City, certain neighborhoods come up again and again:
Sugar House - Strong queer community, walkable, lots of duplexes and older homes with rental potential. Close to LGBTQ friendly businesses and nightlife.
The Avenues - Historic neighborhood with character homes, many have basement apartments or mother-in-law suites. Progressive, inclusive community.
Capitol Hill - Up-and-coming area with affordable multi-family properties. Growing LGBTQ population and great walkability.
Marmalade - Diverse, artsy neighborhood with good bones and rental potential. Close to downtown and affirming spaces.
These aren't just gay-friendly neighborhoods in Salt Lake City—they're places where house hacking makes financial sense and you'll feel at home.
Getting Started
If you're curious about house hacking, here's what I recommend:
Get pre-approved so you know your budget
Look for properties with rental potential (extra bedrooms, basement space, multi-family)
Run the numbers on what rental income would realistically be in that area
Consider your lifestyle - what level of proximity to tenants feels comfortable for you?
The beauty of house hacking is that it doesn't require you to be a landlord to multiple properties or manage a big portfolio. It's real estate investing that starts exactly where you are—with the place you call home.
And if you're someone who's felt like wealth-building and real estate investing were reserved for people who didn't look like you or love like you? This is how you get in the game!
You don't need family money. You don't need to wait until you can afford two properties.
You just need to be willing to think creatively about what "home" can look like—and most of us have been doing that our whole lives anyway. Feel out what you can be uncomfortable with and what you can’t.
The Salt Lake City Market in 2026
The Salt Lake City housing market in 2026 is still competitive, but there are opportunities. Median home prices are around $570,000 and homes for sale in Salt Lake City are typically selling within about 60 days (this will speed up in spring).
What does $550k buy in Salt Lake City right now? Depending on the neighborhood, you could get:
A duplex in Murray or West Valley
A home with basement rental potential in Sugar House
A multi-family property in Capitol Hill or Rose Park
The market isn't slowing down. If you're waiting for a "better time," prices are projected to keep climbing—around 3% growth expected this year alone.
Monthly Median Sales Price and Monthly Median Payment in Utah
Note: Monthly payment assumes corresponding average 30-year fixed mortgage rate and a 10% down payment. Source: Kem C. Gardner Policy Institute calculation of UtahRealEstate.com and Freddie Mac Primary Mortgage Survey.
Ready to Explore House Hacking?
Whether you're just starting to think about buying, actively searching, or ready to make offers, I'm here for a real conversation about your goals.
No pressure. No judgment. Just an honest discussion about what you're looking for and how we can find it together.
As an inclusive realtor in Utah who understands LGBTQ experiences, I've helped many diverse & queer professionals find their first investment property—the one they call home.
Wondering if this is your year to buy a home? Let's take the first step. You can bring your questions (and your doubts) to my ASK ME ANYTHING LIVE STREAM. See you soon.
Kevin A Petersen is an LGBTQ+ affirming real estate agent serving buyers and sellers throughout the Salt Lake City area. Schedule a no-pressure conversation about your home buying goals.
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