First buy and hold Real Estate property

[Samuel Mele]

Hello All,

I am looking to buy my first rental property and have a few questions I thought I would put out there.

Firstly, I am familiar with the Brrr method of investing and believe it is a great option but at this point of my life I want to start small and own one property for the first couple years of my career. 

My question is do you think it would be smart to buy and rehab a property through hard money (for the purchase price, I have the money to cover the rehab) and rent it out. After refinance only the amount I need to pay back the hard lender and the money I put into rehab. And boom I now have a mortgage that will be paid off by the renters within lets say 6-7 years. This is essentialy the brrr method without using the appreciation from rehab to grab money and do the next project.

Or..

buy and rehab a house. Grab mortgage at full value and Live in it for a few years then rent it out. After do the same thing buy and rehab and move within 2-3 years. After about 10-12 years I would have 5 rental properties streaming in and most likely atleast 2-3 paid off. Is there any benefit to do this? would it save on taxes and banks allow me to keep getting mortgages as long as a I can prove rental income? My goal is not to be a millionaire but to match what I make in a month to passive income coming in (ex. make 5k from a job and stream 5k passively).