Which one is better? House hacking or Investing + Renting?

[Bryan Tasumi]

Which one is better? House hacking or Investing + Renting?

I am moving to Houston soon and would like to house hack or invest in real estate and rent. I am not sure which one will come out further ahead and be less risk for a newbie. I am 25 yo with about $150k saved up. Any advice? 

[Chris Sellers]

Bryan,

Wow, great job saving $150k at 25!  You have lots of options.  

I think house hack is better for a first timer, as long as your lifestyle can accept it.  So many benefits with living on site and getting the landlord experience.  You can get the best homeowner type loans and still write-off the rental property expenses.  I did this at your age with a duplex and it was a great experience.  

Do your research, buy the place right and pick your tenants wisely.  Push the rent up as much as the market will allow.

Good Luck,

Chris