I think that the obvious answer here is to House Hack, but hear me out and please tell me what you would recommend!

I have house hacked 2 single family homes in Colorado Springs, moved out with both rentals cash-flowing very modest amounts annually, and am actively looking for the next property around Allentown, PA.

My 2 options:

Add to my portfolio and House Hack for the 3rd time

I know that house hacking will be the easiest barrier to entry around a big down payment, has the chance for a lower APR with a primary residence loan, and I am comfortable using this strategy as I have done it twice in the last 3 years. I am looking at a 2 year horizon before I would move out and turn the property into a LTR to add to my small portfolio whether it be a SFH or a small MFH (4-plex would be my max).

I would have about $30k - $40k for a down payment, closing costs, and a few months of reserves.

Sell my portfolio and scale into something larger

Over the last 3 years house hacking I have accumulated a decent amount in equity that I am very proud of, but am extremely hesitant in touching the equity to scale my portfolio at this time.

I would have about $100k - $120k in equity before agent fees, closing costs, and capital gains tax if sold. I would not be eligible for a 1031 exchange, and when looking at refinance rates on 3% and 5.5% rates respectively, the numbers would not make sense to keep the properties and scale.

Where my head is at and my future goals with REI

I am very hesitant to sell off cash-flowing properties and have the voice in my head saying "if it ain't broke, don't fix it". I have also never been in a position to have a substantially larger down payment in order to be considering a different REI strategy that house hacking.

I am investing in REI for my families future and have absolutely no intent of looking to "get rich quick", replace a job, or use father time as an excuse to make hasty decisions and potentially leveraging myself too far. I know so many investors that have "x doors" that will always be a number greater than I am actually looking to achieve.

I guess what I am wondering is if I am not being as ambitious as I should be to look for those larger deals, or if I should keep looking to add singles instead of home runs to reach my goals in this long journey.

Thank you for reading this, and if there are any other investors, like me, that feel like they don't know their next step please share your story! It is always extremely eye opening to see how our community can creatively find solutions as one.

Allentown, Pennsylvania

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