House Hacks with Ali Quinlan

Cynthia Williams
Nov 29, 2022
2 min read

During StartUP Gary’s November 17, 2022, workshop with the Incremental Development Alliance (IncDev), guest speaker Ali Quinlan shared examples and a checklist for executing a "House Hack" project. This strategy is designed to be an entry-level step into development that generates income while allowing you to stay in your home (if zoning allows).

Phase 1: Concept & Goal Setting

Identify Your "Why": Determine if your goal is to generate extra income, age in place, or provide housing for a family member.
Target Existing Assets: Focus on a single-family home or lot you already own or are looking to buy. The goal is to tap into the equity or income potential of the property without needing to sell it.
Commit to Owner-Occupancy: Plan to live in one of the units. This approach is often "gentrification-proof" because rising rents benefit you as the owner rather than displacing you.

Phase 2: Zoning & Code Research

Check ADU Allowances: Review local zoning to see if Accessory Dwelling Units (ADUs) are permitted. Some cities may allow multiple ADUs per lot (e.g., Fayetteville allows two).
Investigate Barriers: Look for code constraints such as parking mandates or occupancy requirements that might make a project difficult.
Find the Workarounds: If a full ADU with a stove is not permitted by code, consider a "hack with a wet bar." A kitchenette often avoids the complex zoning triggers of a full kitchen while still serving tenants who don’t cook often.

Phase 3: Design & Unit Strategy

Keep it Small: Design for the "one-person household" demographic (approx. 30-35% of households nationally). These units are naturally affordable because of their small size.
Utilize Existing Space: Look for "secret density" opportunities such as:
- Basement conversions.
- Garage apartments.
- Spare bedrooms with separate entrances.
Avoid "Big Building" Triggers: Keep the project simple (wood walk-ups, no elevators) to ensure it remains low-risk and affordable to build.

Phase 4: Execution & Operations

Select Your Tenant Strategy: Decide between long-term rentals (e.g., for a single person/student) or short-term rentals (e.g., Airbnb), depending on your location and income needs.
Start Small: Treat this as an "entry-level" project. Use it to cut your teeth on financing and management before attempting larger developments like a fourplex or mixed-use building.
Leverage Income for Stability: Use the rental income to stabilize your housing costs, allowing you to weather economic downturns without losing your home.