How a 41-year-old 'house hacker' built an $8 million-plus real estate portfolio that would let him retire now — if he wanted to

• Mike Hills has developed a property portfolio worth over $8 million, and he credits 'house hacking' with his success.
• House hacking is a multi-family rental property strategy in which an investor lives in one of their units while collecting rent from the others.
• Hills has spent the last 19 years developing an expansive portfolio, and owns a condo, townhouse, 8 single-family homes, duplex, quad-plex, apartment, trailer park, and more. 
• "I'm 41 and could retire now if I wanted to," he says, adding that he's not sure he ever will.
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Mike Hills is the VP of Investment Brokerage at Atlas Real Estate, a property management company based in Denver, Colorado, and has been with the company for seven years.

But he's been a real estate investor for almost five times as long.  

Starting out 19 years ago when he was less than three months out of college, Hills bought his first house with a 3.5% down FHA loan and a $6,800 down payment that he borrowed from his mom. He still owns that house today, alongside the condo, townhouse, eight single family homes, duplex, quad-plex, apartment, and trailer park that he's since acquired. 

Building an expansive portfolio since the early 2000s, Hills credits his success to "house hacking," a popular investment strategy utilized by multi-family rental property owners in which an investor lives in one of their rental units while collecting rent from the others. 

"I bought my first five places house hacking before the term even existed," Hills said. "I bought a place, lived there for 12 to 24 months, kept it, turned it into a rental, and then moved into the next one." 

The strategy worked, and in 19 years, Hills has house-hacked his way from a college graduate with $25,000 in student loans to an investor with a real estate portfolio valued over $8 million.

While Hills could be considered a member of the FIRE movement (Financial Independence, Retire Early) as an investor young enough to retire well ahead of when he'd be expected to, he has no plans to step back anytime soon.

"I'm not sure I ever will retire. I work because I like to, not because I need to," he said. "I'm 41 and could retire now if I wanted to. I have four small children. I don't like golfing that much and traveling is out of the question during the school year. Plus, my liver would explode!"

Advice for investors 

But to be a successful real estate investor, it's important to be mindful of a few pro tips at all times.

Having good bankers and good lawyers, Hills said, is one essential aspect of project management for any successful investor. A well-equipped property management team is a must-have, too, he said, emphasizing the importance of working with a firm whose interests align with your own. 

And when it comes to a real estate investor's daily routine, Hills said that good investors are always on the lookout for deals. "I look for good deals each and every day," he said. 

For the investor thinking about the long-term, Hills added, it's important to look far enough down the line when analyzing a property.

"I always think of the 20-year picture," he said. "It's not necessarily about where a market is now, but what will come from it in 20 years. Will you be able to generate a positive cash flow in 20 years?"

SEE ALSO: Property investors can save hundreds of thousands on capital gains taxes with this strategy

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