What’s a Sneaky Duplex? How to Generate Income From a Private Room in Your Home

Why are you waiting to buy a house? Are you hoping to go in on one with a spouse? Or, saving up to put 20% down on a home? Maybe you’re waiting for the market to crash. I get it, buying a house can seem overwhelming and many of us tend to kick the can down the road because of this. At Open House, we dig into our clients' fears to uncover what ultimately gets them excited about it. And, we educate according to what we learn.

Cue: The Sneaky Duplex. It’s a term, a lifestyle, a means to supplement mortgage costs, and so much more.

“Huh, What’s a Sneaky Duplex??”

We throw the term House Hacking around a lot, or renting out a space in your home either short- or long-term to help cover your mortgage payment.

A Sneaky Duplex is a House Hacking strategy, specifically the act of adding an exterior door to a bedroom in your home to make it a separate space for short- or long-term rental. 

It’s all about the house and knowing what to look for during your home search (our agents are experts at this, ya’ll). The right floor plan lends itself to an easy split.

Here’s an Example…

Open House Co-Founder Steph created her own sneaky duplex by sectioning off a primary bedroom in her home to create a "suite." She’s been renting it out on Airbnb for years! Check out this tour:

@openhouseaustin We coined the term “Sneaky Duplex” - here’s how it’s done! #househacking #sneakyduplex ♬ Inspiring Journey Background Music (Upbeat, Indie, Instrumental) - Instrumental - Lesfm

You might’ve noticed that her Sneaky Duplex has a bathroom, but no kitchen. She put in a microwave and coffee maker… just like a hotel room! As long as your listing description is clear, guests will know what to expect. And let’s be honest, how much cooking do you really find yourself doing while checking out a new city?? Especially when you’re staying somewhere that’s known for its delicious breakfast tacos. ;)

Okay, but how much money is Steph making off of “just a room?” Well, this Sneaky Duplex actually covers her entire mortgage. She was able to completely eliminate her housing payment. Location certainly matters when selecting a home for this set up. Steph explains her bookings in more detail, here:

@openhouseaustin Reply to @jennyjunebug #sneakyduplex #numbers #househacking ♬ original sound - Homebuyer Education

Are you wondering: easier said than done? Keep an open mind and check out an example of how you could do this with a home that’s on the market in Austin, TX.

Another Example, Using an Active Listing…

This beautiful 3 bedroom, 2 bathroom North Austin home is priced at $469.9K.

The estimated monthly cost for this house is $3,014 (not including utilities).

Guest suites listed on Airbnb in this area are about $75-100/night. Your suite is in better condition than others in the neighborhood, so you charge $125/night. Check it out:

It’s truly a blank slate. To add an entrance, simply replace a window with a sliding glass doorway - either leading into the side or backyard of the property (left side of this home, pictured in the photo below).

Let’s talk money! If you rent this suite out for 30 days, your gross earnings are about $3,750. As an Airbnb host, you will probably pay a 3% service fee to Airbnb, leaving you with $3,637.50 for the month.

Your Earnings - Your Monthly = $623.5 Earned Every Month!

This reveals a couple of things. 1) It will not be a ‘requirement’ to rent this room out every day of the month (if supplementing your mortgage costs is the goal). 2) You could use this new source of income to cover the rest of your bills and/or invest it into improving other aspects of the home. You could even save toward a future home purchase!

To browse through more Austin homes, visit our search engine here.

Frequently Asked Questions

We’ve been sharing this concept for awhile, so we’re no strangers to the questions that come with it. Here are a few along with our insight.

Q: Isn’t this just an efficiency? Or, a studio? 

A: Sort of! The Sneaky Duplex is a real estate strategy. What sets this idea apart is that we’re empowering potential buyers like you to identify an opportunity where there wasn’t one previously. That means, understanding the short-term rental market in your area as well as permitting and renovating the space. Something our agent team is excellent at doing and ready to help you with, starting with one quick call. Investing in a duplex is a no-brainer; that’s why there are so few available. Why not make your own?! 

Q: ​​By sneaky, do you mean illegal?

A: No! If you plan to call this house your primary residence, renting out a room with an exterior entrance is perfectly legal in Austin, TX.

Q: How do you report this kind of income on your taxes? 

A: Steph talks about that over here!

Q: I don’t live in Austin, TX! How do I do this in my city?

A: Check with your city’s municipality and Google around! If this is legal in your city, it’s likely that many others are doing it already - search Airbnb using the terms “casita” or “suite.” You can also ask your realtor! If you’re in need of a like-minded agent in your city, we can help connect you to someone great!

Next Steps…

Now, are you interested in House Hacking and creating your very own Sneaky Duplex?!

Our agents create these spaces in their own homes AND help dozens of clients identify similar opportunities while house hunting. Let’s put together a unique strategy for you! Schedule a call here.

Not sure if now’s the right time for you? Take the Are You Ready to Buy a House Quiz to learn more.

Follow us on Instagram and TikTok for ongoing real estate market updates and all the home buying + selling tips.