Seeking Input - Next Play after Buying First Home in CO

[Austin Plough]

Hi there!

After the purchase of your first home as a real estate investor, what strategies did you consider and pursue for your next play?

Earlier this spring, my wife & I purchased our primary residence on the Western Slope of the Colorado Rockies. This home purchase is a first for both of us. It is single family home with 3 bedrooms and 2 baths, which is a good fit as we raise our young child. Some updates have been completed; including new carpet, drywall sheetrock, priming and painting, and building out organization in the garage. We are now preparing to rent a room, which will serve as a house-hack to help offset our mortgage payment. With the intention of implementing the buy and hold strategy, we are looking ahead and contemplating what to do next!

Sharing some options while we continue to learn and network:

1. Stay put for a while, building on the six-month cash reserve we have. Keep going with the house-hack until the family is tired of it.

2. Save and purchase a property that serves purely as a rental. Would search to find a place locally in need of some work to capitalize on sweat equity before renters are placed. The cost of entry is pricey, with median home prices being around $600K. 

3. Aggressively pay down the mortgage. This will build up equity in existing home.

The conservative side in me wants to run with Option 3, but I do not think this is the most investor-savvy move.

We like the long term buy and hold strategy - what would you do?

Eager to hear what those with more experience may offer. Thanks in advance for any input you might have!