I would focus on creative finance in one market first. Learn how to underwrite a deal and talk to sellers before chasing a lot of strategies. That is what I did in San Antonio, and it kept me from spreading myself too thin.
@Melissa Correa Before picking a strategy, I'd answer one question first: what's the goal? The right strategy depends on it, and a lot of people pick the strategy first and then find out it doesn't fit how they want to live.
A little extra income without being very active? Look at private lending. If you have capital, you're funding other investors' deals instead of managing property. If you have more time than capital, co-hosting is worth a look. It's hands-on, but it costs very little to start, because you're managing short-term rentals for other owners instead of buying your own. Disclosure: I run a co-hosting business, so I'm biased on that one.
Replacing your job income? Then you're building a portfolio that has to produce real, repeatable cash flow, and strategies like BRRRR or multifamily syndications make more sense. BRRRR lets you recycle the same capital into more doors. Syndications let you scale into larger assets without being the operator.
Somewhere in between is where I landed. I started with long-term duplexes in Orlando, and today most of my units run mid-term (furnished, 30+ day stays) with short stays filling the gaps. Whatever the goal, I'd keep one rule: anything you buy should at least break even as a long-term rental. That gives you options if the plan changes.
So what's your goal: extra income on the side, or replacing a paycheck? And how hands-on do you want to be? Once you know that, the strategy question gets a lot easier.
If I was starting today, I would focus on BRRRR in one market and learn it cold. That is how I built to 236 single-family rentals in Memphis. Pick a buy box and stick to it. Mine is under $100K, ARV $180K to $265K, 3 bedrooms or more, with Section 8 rents of $1,395 to $1,950 for 3BR+. I underwrite to the 1% rule and refinance with DSCR loans at 70 to 80% LTV. I like turning a 2/1 into a 3/1 or a 3/1 into a 4/2 when the layout allows it, because the extra bedroom moves the rent. Deal flow is the hard part, not money or contractors, so learn to find deals that fit your numbers and pass fast on the rest. What market are you looking at, and what does a deal have to rent for to work for you?
@Melissa Correa , let's connect! This is literally what I help people with all the time from my experience. Worst thing you can have is shiny object syndrome! Honestly the right first strategy depends more on you than on the market. How much time you've got each week and whether you want income now or something you hold for years will point you somewhere pretty fast.
Dallas gives you room to go a lot of directions. I know a few people who'd be good for you to talk to, glad to make the intro. Are you planning to keep your full time job while you start? Shot you a message :)
If I were starting today, I'd pick one strategy and one market and go deep instead of wide — for most first-timers, that's a small long-term rental, a duplex or a single-family, close enough to understand. The first deal's real job isn't to make you rich; it's to teach you how to underwrite honestly, manage a tenant, and handle the first surprise repair without panic. I'd run every deal on real rent comps, not the seller's pro forma, and make sure it at least breaks even as a long-term rental before I got excited about any other exit. And I'd build the team before the portfolio: a knowledgeable local agent, a lender who knows investors, an inspector, and a property manager you trust. Those four people will save you more money than any single strategy. Once you've done one deal cleanly, the second one gets much easier to judge.
Melissa, one thing that gets overlooked when picking a first strategy is that the financing often decides it for you. If you'd live in the property, a house hack in DFW (a small duplex, or a single-family where you rent out rooms) lets you use owner-occupant loans with much smaller down payments than investor loans, which usually want 15-25% down. If it's purely a rental, a DSCR loan qualifies off the property's rent instead of your income, but the rent has to cover the full payment, and a lot of Dallas listings don't at today's prices. So before choosing, it helps to know three things: how much you can put down, whether you're open to living in it, and how much monthly cushion you want. Those answers narrow the options fast. Disclosure: I'm a lender in Texas.