STUCK! Seeking encouragement for which route to take.

[Amy A.]

I'm looking to start my RE investment journey. I've hoarded cash, am debt free with a credit score of 815. Ready to go. I currently rent. I've heard three schools of thought as to where to start. What is your opinion given that you live in SD, too?

1. Always invest in your principal first. Spend below your means, house hack, take out equity, buy smaller investments next.

2. Start with smaller in-state investments, rent them out, be your own landlord, allow the income from those to fund your principal purchase in San Diego.

3. Invest smaller, out of state, allow time for those to build to then fund your principal purchase in San Diego.

If I do option #2, secure a renter to cover mortgage, will that allow me to get approved for more to purchase next property or will it tie me up in the eyes of a lender, and then prohibit me from being able to buy principal in next 6-12 months?

[Jose Linares]

@Amy A. Option #3 works the best for us. We currently rent as well. Focused on small, multifamily out of state to BRRRR and grow the portfolio to reach FIRE as quickly as possible. We are still considering a duplex in San Diego to house-hack but it has to be a phenomenal deal.

Everyone has their own path. It seems all the options you listed are focused on purchasing a primary residence.  If option #2 is the best fit for your goal, definitely look for a duplex.  There are currently a few grants available to cover the 3.5% down and then you are only responsible for closing costs.