Hardly a place to live in! (8)
I believe the answer is:
outhouse
'in' is the definition.
Although both the answer and definition are singular nouns, I cannot see how they can define each other.
I can't explain the remainder of the clue.
Can you help me to learn more?
(Other definitions for outhouse that I've seen before include "Smaller building separate from main one" , "Shed or barn belonging to house but not part of it" , "Construction" , "External building" , "Building near home" .)