The best start out strategy?

Question

Hey All! As a new realestate investor, would you say that House hacking is the best way to invest especially at the beginning? I am also interested in BRRRR-ing. How would I make this transition? I would appreciate any thoughts on this. My plan is small MF Homes to start. Live in it for a year and rent it out. Do that a couple of times!

Luke Marsh · Answer

Hi Evelyn. I haven't done any house hacking myself, but it is definitely a popular way to start out. Doing a multi-unit on an FHA or conventional loan is a good start, while maintaining your capital. Best of luck!

Max T. · Answer

you got it

2-4 unit on a conventional or FHA loan

preserve your capital when starting out

look for something that needs cosmetic work but has heating/electric/plumbing with plenty of life left... "grandma house"

Evelyn Castillo · Answer

THANK YOU all!

Jared Maches · Answer

Hello @Evelyn Castillo, I think house hacking is a great way to start in the RE game. A few things that make house hacking great is you gain landlord experience which is very helpful if you are looking to manage your own properties in the future. Also, another big advantage is you can earn cash flow by living in a 2-4 unit MFR while saving almost all of your W2 income. Lastly, you can use a low down payment to get into these properties either with a FHA loan or a conventional loan but you should look up the difference between them so you can figure out which one best suites you.

Best of Luck!

Marlen Weber · Answer

While I haven't done it, I do see most investors start out by house hacking and they love it. It seems to be the most popular strategy to start out, and for all the right reasons. Best of luck to you.

The best start out strategy?

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