House hack first, or buy turnkey? Pick one.
Every new investor asks some version of the same question: do you buy the ugly duplex down the street, move into one side, and learn the business the hard way? Or skip the sweat equity and buy something already rented, already managed, already cash flowing?
House hacking gets you in cheap and teaches you the business fast, tenant down the hall and all. Turnkey gets you a working asset from day one, no reno headaches, no living next to your investment.
If you started over today, which one, and why? Bonus points if you've done both and can say which one you'd actually repeat.
I'll feature the sharpest replies in Thursday's BiggerPockets newsletter, Investor Brief.
Most Popular Reply
House hack, and I'd do it again, but with one caveat.
I bought a duplex and spent months renovating both units before placing my first tenant. By the time that first lease was signed I had already dealt with contractors, material costs, and every surprise a property can throw at you. That hands-on education is worth more than any course.
The financial case is hard to argue with too. Owner-occupied financing gets you in with significantly less down, and your tenant covers a big chunk of your mortgage while you learn the business from ten feet away.
That said, I think the honest answer is it depends on where you are in life. House hacking is a sweat equity play. The margins are better but you earn them. When you are younger and have the time and energy for it, that tradeoff makes a lot of sense. Now that I am older with a business to run, a full-time career, and a new born, I would probably lean toward turnkey. You give up some margin but you buy back your time, and at some point your time is worth more than the spread.
So if I were starting over at 25, house hack without question. Starting over today, probably turnkey.