Would you continue to house hack, traditional rental or Airbnb?

[Mark T.]

What would be the right next step?

I have enough money save to put down 20% on a 2nd property in my area, but my credit score is too low right now to get approve for a traditional loan. I’m self employed so I try to pay as low in taxes as possible.

For additional income I recently started to house hack my primary home (4bed 2bath) I am currently house hacking renting 3 room each per month to international students for $650. My mortgage is $1500. 

My question is should I hold my money, save more and slowly build up my credit so I could finance another property. Or should I try to turn this money over right now and convert my garage into a efficiency. 

I could rent the efficiency traditionally for $1300 per month or on Airbnb. I could live into the efficiency and rent the 4th bed room for $850 (prvt w/bath), or live into the efficiency and try Airbnb with the main house. Bare in mind I would have to use the full cash I save up as a down payment to finance the construction of the efficiency. It will be down up to coding and it’s been ok by the city.