First Home Investment Advice

[Belinda Arredondo]

Hi, i'm looking to purchase my first home in the next 3 months. I'm looking for advice. I don't have experience with home repairs, but i'm open to learning how to replace floors, cabinets, cosmetics, etc. Which means the home I buy won't be a fixer upper or a BRRR investment necessarily. What is your advice on how I can make this home an investment home? I've considered Airbnb-ing a room, petsitting people's dogs, using it as a storage space for people. Whatever income I receive I can set it aside to save to purchase another home to set up as a rental or Airbnb property. However, that will take a long time for me to save up enough for a decent downpayment in the purchase of a second home for rental/Airbnb.

OR if I purchase a home that could use cosmetic work, should I sell it and get it appraised, purchase another home and repeat the process? Just trying to figure out how to dive into investing. I don't have tons of savings, I have excellent credit and can get a teacher loan for my first purchase.

[Michael Hill]

Hi @Belinda Arredondo, It sounds like house hacking would be a great option for you based on the info that you provided. I would try to find a property where you can rent out part of it while you live there, such as renting out a room in your house as you mentioned. It could also come in the form of buying a duplex and living in one side while renting out the other. This would allow you to get started in real estate investing with very little money down, as down payments for conventional loans can be as low as 3%. I think that house hacking is a great way to start real estate investing, especially if you don't have a lot of savings that would be needed to rehab a fixer upper if you go the BRRRR route. Also, you could buy a place that is currently livable, but might be dated or still need some repairs, which would allow you fix up the home while you are living in it as you are able to save up money. This way you would still be adding some value to the home, but just not all at once or as much as a BRRRR.