Where do I start? Live and Flip to Buy and Hold.

[Ali Matula]

Hi All,

My spouse and I are very interested in getting into real estate investing. We bought our primary residence as a live and flip. However, we have expanded our family since then and are looking for a low risk entrance strategy for buy and holds.

Option 1: We can 1031 exchange to come out with about 40k-50k that could be used as down payment for a house hack and repairs. (Eventual BRRRR) (House hacking would reduce our housing expenses from 31% to 7%).

Option 2: We stay living in our sought after neighborhood and save up 20%+ to put into a multi-family property. Saving this kind of money could take a few years based on variable comp.

We owe 275k on our house yet and estimated rent is about $2,500 a month so I don’t think it makes sense to rent our primary while trying to qualify for an owner occupant loan.

Thoughts? Suggestions? Where do I start?