What Investment Strategy did you Start With?

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What Investment Strategy did you Start With?

Chase Yokoyama
New to Real Estate · Honolulu, HI · Member since 2019 · 42 posts · 16 votes

Aloha, everyone! Out of curiosity, what strategy (Fix & Flip, Rent, Wholesaling, House Hack, BRRRR, etc.) did you use when you bought your first investment property. I know there are so many variables to consider but I want to keep it as simple as possible. I am just eager to see what people usually start off with.

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Jorden P Dupont
Real Estate Agent · Windsor Locks · Member since 2020 · 20 posts · 21 votes
5y

Hey Chase! I have not done my first deal yet but I'm am pursuing a house hacking deal, a live in flip, or possibly even a BRRRR. These types of strategies suit my current goals, lifestyle, and situation the best. House hacking at 25 with no kids is a lot easier to pull off than someone who is older, looking to settle down, and possibly has kids already.

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  • David Krulac
    Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
    5y

    Buy and Hold hand down easiest.  Easiest to finance, Easiest to find, easiest to understand, easiest to exit.  And most forgiving.

    5Reply
  • Jeff WhiteBusiness Member
    Realtor · Denver, CO · Member since 2016 · 278 posts · 371 votes
    5y

    @Chase Yokoyama House hacking for me, and I've repeated it 4 times!

    It is a great low risk/high return type of investing strategy since you are basically getting a low downpayment loan, and get on-site property management experience as well. To me, it is the best beginner's strategy that doesn't take a lot of time or money to get started. 

    2Reply
  • Anthony Angotti
    Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
    5y
    Originally posted by @Chase Yokoyama:

    Aloha, everyone! Out of curiosity, what strategy (Fix & Flip, Rent, Wholesaling, House Hack, BRRRR, etc.) did you use when you bought your first investment property. I know there are so many variables to consider but I want to keep it as simple as possible. I am just eager to see what people usually start off with.

    House hacking. Easiest way to learn with low risk. 


    I flipped two houses, never liked it. Too much like a job. 


    Now we BRRRR apartment buildings, but that's hard to find lately. Buy and hold is the tried and true way to wealth.

    1Reply
  • Cathryn Sta
    Investor · San Francisco · Member since 2020 · 39 posts · 28 votes
    5y

    @Chase Yokoyama

    For me, buy and hold single family home out of state.

    1Reply
  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    5y

    @Chase Yokoyama 

    I started with a BRRRR and I am looking to get a house hack rolling next

    [email protected]614-412-4565
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    1Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y
    Originally posted by @Emanuel Martinez:

    @Steve Vaughan can you define luxury house hack?

    A primary res that has a MIL apt, ADU, Casita or Carriage House vs a standard plex or basement apt.

    My rental is down in the corner at about 25% of the footage with their own parking and yard. We hardly see them. 

    3Reply
  • David A Lisowski
    Rental Property Investor · Inlet Beach, FL · Member since 2018 · 199 posts · 111 votes
    5y

    @Chase Yokoyama

    Took out a HELOC on our primary to buy a STR on 30A.

    Sold our primary in May 2020, and moved (April 2020) to the investment property. Refinanced as primary.

    We have a new HELOC open, and are set to purchase a local, long-term rental.

    Next might be DSCR, maybe with a partner or as an LLC. Might go with another LTR.

    Then setting sights on some multi-family units.

    1Reply
  • James Ma
    Burnaby, BC · Member since 2017 · 283 posts · 268 votes
    5y

    I thought the same and went for cashflowing buy and hold rentals. Simplest strategy as it involves less trades/contractor experience or connections and less dependency on rising market values but have been curious at trying BRRRR sometime but all my local renovation companies tend to be booked for months out so harder to coordinate

    2Reply
  • Emanuel Martinez
    Rental Property Investor · Cleburne, TX · Member since 2020 · 18 posts · 9 votes
    5y

    @Steve Vaughan alright thanks for explaining!

    1Reply
  • Seth RouchPro Member
    Specialist · Denver, CO · Member since 2015 · 85 posts · 29 votes
    5y
    House Hacking - One of the simplest ways to own your own real estate while others help you pay for it. While you're there you can BRRR it and build your portfolio.

    I'd recommend a 2-4 unit to start with as that will also give you land lording skills.

    Enjoy the journey! And remember, its a marathon and don't compare your achievements (or lack there of) to others.



    4Reply
  • Samantha Prince
    Rental Property Investor · Salt Lake City, UT · Member since 2021 · 11 posts · 7 votes
    5y

    @Chase Yokoyama

    my husband and I bought our first rental property through house hacking it! we’ve learned a lot. it’s a nice way too because you decrease your personal expenses in the process (not paying a mortgage or rent) if done correctly. that extra cash can go towards your next property as you increase your income snowball. highly recommended especially if you are young and don’t have a ton of responsibilities rn (spouse, kids, etc)

    2Reply
  • Sam Lewis
    Real Estate Agent · Baltimore, MD · Member since 2018 · 285 posts · 228 votes
    5y

    @Chase Yokoyama

    Househack

    0Reply
  • Rachel Morrow
    Real Estate Agent · Kansas City, MO · Member since 2020 · 46 posts · 34 votes
    5y

    Working on my first investment at the moment, a house-hack that I found off-market. It's grossly under-rented, and the owner wants to 1031 into a commercial property. 

    I am hoping and praying that we reach the closing table with no bumps in the road! 

    Things I learned from this deal so far: 

    -Find a good lender (by calling multiple, getting to know them and their lending standards) and build a relationship! 

    -If you have an offer in mind, you should probably offer a bit less (however, don't low-ball just because you found it off-market). If you want seller's credit towards closing costs later down the road, you won't regret doing this, as you can always offer more on the purchase price.

    -Communication and relationship are key. Listen to the seller's story. People love sharing how they got the house and what brought them to where they are right now.

    -Have fun and enjoy the process! In the end, you will either learn a lesson or makes $$$

    4Reply
  • Cathy Malmrose
    Rental Property Investor · Lapeer, MI · Member since 2019 · 57 posts · 118 votes
    5y

    @Chase Yokoyama I bought houses the same way I'd buy clothes -- is it well made & a good value. I'm at a different price point than you so it was easy, but if I found good deals and I purchased them cash. I'm not a big fan of using OPM, just seems stressful & tight. I either flipped or kept as rental depending on property & market. It's usually clear as day what's appropriate for each property.

    2Reply
  • Duc Ong
    Real Estate Agent · Honolulu, HI · Member since 2015 · 450 posts · 196 votes
    5y

    @Chase Yokoyama I started with a live-in flip condo in Honolulu, which we'll be putting on the market by the end of the year. At the same time I partnered with another investor to buy a 3 unit. I think where you start depends on what resources you have and what opportunities are available. Let me know if I can help.

    1Reply
  • Sam Domach
    Investor · Milwaukee, WI · Member since 2014 · 29 posts · 17 votes
    5y

    Hey Chase! I started out in my journey going right into Multifamily deals. I bought a duplex first, then a tri and am now under contract on an 11-unit apartment building as my third purchase. I think as you can see from the comments back, there is no right one way to start off on this path. It all comes down to your financial situation and your appetite for being potentially uncomfortable with your living situation.
    If you are short on cash, wholesaling is always an 'easy' way to get started with little overhead and potential to do deals quickly.

    If you have some cash or other people's money to use, flipping and/or buy&hold can be the appropriate path. If you are comfortable living next to someone, look into house hacking and then moving out after a year. If you don't want that, look at investing in the duplex and having two renters. Different situations with loans and such, but can offer a wide array of avenues for you personally.

    For me, it is always a numbers game. Run the numbers, verify and trust the numbers and no matter what avenue you take in your investing career can pay dividends.


    Sam

    1Reply
  • Joshua D.
    Investor · Columbus, MT · Member since 2013 · 1k+ posts · 1k+ votes
    5y

    @Chase Yokoyama

    House hack a duplex 9 years ago.

    1Reply
  • Jonathan StonePro Member
    Rental Property Investor · Camas, WA · Member since 2020 · 285 posts · 202 votes
    5y

    @Steve Vaughan

    I love this concept. My wife and I have discussed this as more of a BRRR strategy where we could add ADUs as it seems more local governments are encouraging housing density. Adding a unit without having to subdivide seems like it could be very valuable.

    2Reply
  • Account Closed
    Rental Property Investor · Indianapolis, IN · Member since 2020 · 562 posts · 554 votes
    5y

    @Chase Yokoyama

    I started with a couple turnkey buy and hold properties. It was an easy first step for me, and seemed relatively low risk.

    If I would have started when I was younger, the house hack would have 100% been my first choice.

    2Reply
  • Aj Parikh
    Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
    5y

    I bought a 2 bed 2 bath condo as a Buy and Hold investment and this was before I had any knowledge about Bigger Pockets or any of these strategies. It has been 6 years since that investment and its performing pretty well. But yea, buy and hold was my 1st way since I also have a W2 job. 

    1Reply
  • Keola Nishikawa
    New to Real Estate · Oahu, HI · Member since 2021 · 8 posts · 8 votes
    5y

    @Chase Yokoyama Hawai’i is an expensive market. I think a live in flip or househack are the best options for us here on Oahu. If not, look out of state where the numbers makes sense. Good luck on your investing!

    1Reply
  • Alexander Kepchar
    Rental Property Investor · Kansas City, MO · Member since 2020 · 6 posts · 1 vote
    5y

    @Jorden P Dupont Same here! Single, no kids and 24 years old getting ready to get a house hack under contract in the next few weeks! In my opinion, house hacking is a great first investment strategy to break into the market

    1Reply
  • Evan Polaski
    Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    5y

    My first property was a BRRRR to a section 8 tenant. That was also my second, third, fourth, and fifth deal. Although my fifth deal was a market rate tenant that found my property on the Section 8 website.

    1Reply
  • Hai Loc
    Specialist · Toronto, Ontario · Member since 2012 · 2k+ posts · 891 votes
    5y

    @Chase Yokoyama

    Condo rental..

    1Reply
  • Chase Yokoyama
    OP
    New to Real Estate · Honolulu, HI · Member since 2019 · 42 posts · 16 votes
    5y

    @Aaron W. having multiple units in one place sounds so amazing. 

    0Reply
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