First Time Home Buyer/House Hacking

[Mariah Destruel]

Hi everyone!

I am looking to buy my first house and start this path into real estate investing! The house I found is located in a family neighborhood and is walking distance from schools and outdoor parks. It seems to be a safe investment in that I feel confident that vacancy won't be an issue and I don't feel rent will be affected much by market changes. Since it's my first house, I'm wanting to do a conventional loan with 3% down. The house definitely needs some upgrades on the interior and some cosmetic fixes too. After a year of living there, I will move out and rent out the full property. I plan on house hacking by renting out 1 or 2 of the other rooms while I'm there.

Anyway, my question is regarding the BRRRR method. Should I upgrade the property from the get-go, refinance it, and take out money to invest in another property? Can you do that if you have to live there for a year? Should I wait until I'm ready to move out to upgrade the property? I'm new to the industry, so my questions may seem naive, but definitely in need of some guidance.

Thank you!