Barbara Corcoran’s “Separate Entrance” Home-Buying Tip: We Ran the Numbers at Today’s 7% Rates
"Shark Tank" star Barbara Corcoran suggests buying a home with a separate entrance to rent out part of it. Here's what that rent could really cover at today's rates.
Real estate mogul and “Shark Tank” investor Barbara Corcoran has a simple tip for buyers who feel priced out: look for a house with a separate entrance, so part of it can be rented to help pay the mortgage. We ran the math at today’s rates. On a typical home, a $1,200-a-month rental could cover roughly a third of the full monthly cost, even after setting money aside for vacancies and upkeep.
It’s not magic, and it’s not for everyone. But for some buyers, it’s the difference between “can’t” and “can.”
- What she said: in an Instagram video reported by Entrepreneur, Corcoran suggested shopping in the off-season, looking at listings that have sat for a long time, and choosing a home with a separate entrance you could rent out.
- Typical home: NAR’s Q3 2026 median single-family price is $432,900. With 20% down at 7.18%, we estimate about $2,962 a month with taxes and insurance.
- Rent offset: a $1,200 unit, after a 20% cushion for vacancies and repairs, covers about $960, or 32% of that cost.
- Check zoning, permits, insurance and your loan rules before you count on rental income.
What Corcoran actually suggested
According to Entrepreneur’s write-up of her video, Corcoran admitted buying a home in this market can feel impossible, then shared three ideas: shop when fewer buyers are looking (winter rather than spring and summer), dig into older listings that have been on the market a long time, where a low offer is more likely to land, and look for a home with a separate entrance that could become a second unit to rent out.
We like the idea. But a tip is only as good as the numbers behind it, so we checked.
We ran the numbers on a typical home
Our example: NAR’s $432,900 median price, 20% down, a 30-year fixed at 7.18% (Freddie Mac, Nov. 5, 2026), property tax estimated at 1% of value per year, and insurance at Insurify’s projected 2026 U.S. average of $3,057. That’s $2,346 in principal and interest plus taxes and insurance, about $2,962 a month.
For rent, we kept 20% back for empty months, repairs and extra utilities. Real landlords know units don’t rent themselves every single month.
| Monthly rent | Counted after 20% cushion | Your share of the $2,962 | Share covered by rent |
|---|---|---|---|
| $900 | $720 | $2,242 | 24% |
| $1,200 | $960 | $2,002 | 32% |
| $1,500 | $1,200 | $1,762 | 41% |
Example rents only. Real rents depend on your area and the space. Keys & Coffee calculations.
And the “old listings” part?
Her second tip fits this market well. Redfin reported that 21.2% of homes for sale had a price cut in the four weeks ending Nov. 1, 2026, while pending sales hit a record low. On the typical home, a 5% discount from a seller who’s been waiting for months is about $21,600 off the price, and about $117 off the monthly principal and interest with 20% down. See our guide to negotiating in the holiday lull.
Before you buy a house to share
- Zoning and permits: make sure a separate unit is legal where you buy. An unpermitted unit can cause trouble with insurance, appraisal and sale.
- Insurance: tell your insurer you’ll have a tenant. You may need a different policy.
- Landlord duties: leases, repairs, local tenant laws and taxes on rental income all come with the deal.
- Privacy: sharing walls with a tenant isn’t for everyone. Be honest with yourself.
What this means for you
- Priced-out first-time buyers: a home with rentable space can make the numbers work. Test them in the affordability calculator.
- Multigenerational families: a separate entrance can house a parent or adult child instead of a tenant.
- Thinking bigger: a duplex you live in is another route; FHA loans can be used on 2–4 unit homes if you occupy one unit. See FHA requirements.
- Compare it to renting: try the rent vs. buy calculator.
FAQ
What is Barbara Corcoran’s advice for buying a house?
In a video covered by Entrepreneur, she suggested shopping in the off-season, targeting listings that have sat a long time, and finding a home with a separate entrance that could be rented out.
Can rental income help me qualify for a mortgage?
Sometimes. It depends on the property type and loan program. Some programs count part of the expected rent; others don’t count it at all for a single-family home. Ask your lender early.
Is renting out part of my home a good idea?
It can lower your housing cost a lot, but it adds landlord work, legal rules and less privacy. Check local laws and insurance first.
When is the best time to look for a deal on a house?
Late fall and winter often have fewer buyers. This year, record-low pending sales and frequent price cuts give buyers more room to negotiate.
Sources: Entrepreneur (Barbara Corcoran’s Instagram tips); NAR Q3 2026; Redfin; Insurify; Keys & Coffee calculations. Not affiliated with or endorsed by Barbara Corcoran. This article is general education, not financial or legal advice. Keys & Coffee is not a lender.
Written by
Shivam Kaushik· IMSHIVA
Founder & Director, QuibbleTech Solutions Pvt Ltd · Editor, Keys & Coffee
Shivam Kaushik is the founder of QuibbleTech Solutions Pvt Ltd and the editor of Keys & Coffee. He is not a licensed loan officer or financial adviser. Every guide here is written in plain English and checked against official sources such as the CFPB, HUD, Fannie Mae, Freddie Mac and the Federal Reserve. For advice on your own loan, talk to a licensed lender.
Keys & Coffee is an independent education site. We are not a lender or mortgage broker, we do not take loan applications or payments, and nothing here is financial advice. This site is not affiliated with Axia Home Loans, Axia Financial, LLC, or Planet Home Lending. Rates and rules change often — always confirm details with a licensed loan officer and check any lender on the NMLS Consumer Access site.
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