Renting out my home and then house hack for my second?

[Johnny Appa]

Hello everyone,

Parents bought a house for me 5 years ago. House is completely paid off and I have zero debt. I currently rent a room out to a close friend.

Recently got married and as a gift my mother is going to remove her name off the deed.

The house does need some touch up done to it, which the wife and I are willing to pay for. After some of the renovations, we are looking to rent the 3 bedroom house. First offering my close friend to rent the house a long with two tenants. If not then we will just rent out accordingly.

Ive noticed a lot of people saying to start our we should do the house hack. Since I already have a home with zero mortgage, i don't know if I should bother with a loan at all. Should we just just buy another house together with a 25% down, live in that house for a year, do all the minor fixes and rent it out and repeat? 

I am looking for any and all advice. Give it to me, I'm open ears. Thank you.

[Jonathan Greene]

If your wife is up for a house hack, you should definitely house hack next. You wouldn't have to put 25 percent down to do it as you would be occupying the property. You will be making straight cashflow on your original property, but would be better served renting it to one party for a long-term rental to start. If you experiment with rent by the room without experience there, it could be a headache. You should definitely do all repairs before renting it so you reduce the calls you will get.