NEW INVESTOR HERE.. HELP PLEASE

[Jonathan Patterson]

Hello my fellow BP Members,

As I mentioned, I'm a new investor and my wife and I are currently trying to purchase our first investment property. We are extremely excited, but yet nervous and admittedly have developed a strong case of "Analysis paralysis". We are located in Broward County Florida, and the market here is ridiculously high and competitive. We are taking full advantage of the FHA loan with purchasing our first property. Now here is where we can't seem to come to an agreement. I love the whole "House Hacking" strategy with purchasing a small multifamily property (1-4 Units), living in one units and renting out the other. That makes perfect sense, but the problem we're having here in South Florida is our multifamily are crazy expensive. Even looking a few miles north/south of our current location is not working out number wise.

My wife approach is to use the BRRRR strategy which she feels works better in our market. Now, I must admit…I agree. I have read countless books on investing, and the Housing Hacking strategy makes so much sense to me. Maybe you guys can help..which strategy makes more sense?

I would love to hear some feedback from members who investment partner is their spouse, but I would be more than grateful to hear from an expert.

-Jonathan 

[Account Closed]

@Jonathan Patterson Both strategies are great and work by taking advantage of leverage. Personally I feel that going into a FHA purchase first is the right way to get your feet wet. There are less risks associated with the rehab and refinance and requires very little cash. After your first FHA purchase your houses expenses will be reduced and you will start to build equity. From this position you will be able to accumulate capital more quickly for your next purchase.

Also consider your resources. For a BRRR you will need to have more cash because you cant mortgage repair expenses. Also properties that are in large disrepair and thus a price discount might not qualify for a conventional/FHA mortgage, more cash and more risk.

Your perspective is that you have to do one or the other. Why not both ? but in a sequence that makes the most sense.