Commercial or small multi family?

Question

So I’ve come to the conclusion that I’m going to go the house hacking route after I’m done with highschool and acquire them with FHA loans, then keep trading up properties every two years with a tax benefit.

However

I’ve also realized credit history will be my biggest obstacle starting out.

Would it be best to continue my plan at house hacking or should I get into commercial real estate were it matters more about the properties financials then my personal finances?

Keep in mind I will be graduating highschool with 24,000 from a lawsuit I was involved in.

Joe Mack · Answer

@Andrew Powers thanks for the advice! House hacking is definitely the best foundation. Have a good day!

Andrew Powers · Answer

@Joe Mack I suggest to do at least one house hack... aka have a home base where you live for free and then go from there. If you happen to build your credit up as time goes on, then consider the options you describe above.

To get your first house hack with the limited credit available... I suggest to first talk to a few lenders. You may be surprised and able to get a loan or not far off as-is. If not, they can guide you how to build credit enough to get a loan through them. Either way it's good to start networking with lenders.

Or you can try to get creative with financing... i.e. seller financing, private money, etc.

Just keep learning and writing down options / paths you are considering to be prepared when opportunity arises.