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Updated about 2 years ago on . Most recent reply
![Tara Eggenspiller's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/2650649/1674592084-avatar-tarae19.jpg?twic=v1/output=image/cover=128x128&v=2)
Intimidated / Trying to figure out which path to take
I have about 6k so far. By the time my apartment lease is up (Sept 2023), I will have about 10k (I'm able to save about $500 a month at the moment). Obviously, this is not enough for a 20% down payment. So this leaves me 2 options to get into investing that I'm aware of:
a) FHA loan a house hack property up to about 250k. Since it needs to be my primary residence, this restricts me to a decent area in my current city. Small du- and triplexes do come available from time to time in this price range in my city. This has downsides, namely, living next to tenants.
b) short-term financing on a prop that needs rehab and can be refinanced after rehabs (BRRRR option). This option means I would still be living in an apartment after this deal. It also means I need to learn as much as possible asap about rehabbing, connect with trustworthy contractors asap, etc.
I make about 80k/year earned income as a CPA. I am super busy during tax season but have ample time to learn and invest in knowledge after April.
Which route, if either, do you think is best for someone in my situation?
Most Popular Reply
![Michael Dumler's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1711746/1621515321-avatar-michaeldumler.jpg?twic=v1/output=image/crop=735x735@7x299/cover=128x128&v=2)
@Tara Eggenspiller, I would not recommend pursuing a BRRRR with only 6k to your name, this is a recipe for disaster unless you utilize an FHA 203k loan like others have mentioned. Nevertheless, still extremely risky. Moreover, I do not recommend obtaining short-term financing (hard money) for your first deal. Short-term financing is a time-sensitive loan product, you need a resourceful and trustworthy team already in place before you decide to go down this route. After eliminating option B, I vote you pursue option A. Even if the deal doesn't break even or cash flows negative your still paying down debt and building equity in your property which is better than paying for someone else's mortgage. I recommend that you connect and work with a real estate agent asap, one who is familiar with house hacking and has successfully house hacked in the past. Last note, forgive me for being upfront, but you make 80k a year and only save $500 per month? Start eliminating unnecessary expenses asap. Hope this helps!