House Hack or BRRRR - Which is Better?

2 Replies

First time investor here! After all my expenses, I am currently able to save approximately $50,000/year for future investments. I am torn between a house hack, using an FHA loan (leaving one of the units empty for a year, as I already have a home). Or saving for two-three years to have enough to BRRRR a property. Any input as to why one might be better than the other would be much appreciated!

Interesting question. The first thing to think about is if you are purchasing with an FHA loan, you need to live in the property. If you don't that would be considered mortgage fraud.

What about doing both? Could you put down 5% on an owner-occupied home and save up the money for a BRRRR in 3-4 years?

@Christian Daviscourt

Your best bet is to purchase a multi family home as your first purchase with an FHA loan at 3.5%. You're able to open in control for residential units for an extremely low down payment.

If you buy a single-family home first… And then you try to buy a multi family later, you’ll need 25% down.

The FHA loan as a first time purchase is the best way to buy a multi family property with less than 25% down.