Starting out in Real Estate - Flip or House Hack?

[Justin A.]

I am new to real estate investing and I am currently working at a big company earning a really good salary (just got out of school last year). I am interested in being financially free, but I am not sure how to start out. I am still living at home to save as much money as I can to start out in real estate. Should I flip a house to start out or do a house hack? Also, I work in the Sandy Springs area and I am interested in keeping the property in the North Metro area to save commuting time. Is the North Metro a good area to look in? Any recommendations on real estate agents to help find good investment properties to flip or house hack?

[Matthew Nicklin]

Without a doubt in my mind house hack! Not to downplay your knowledge but you probably do not have enough knowledge to flip productively at this time. A house hack is a gimme if you do not currently own a home. I have helped many friends and clients purchase a property and they have successfully house hacked. I even have a friend who I helped with a house hack then he wanted to move so he bought a 2nd one then rented out the master of his old house, so he has 2 properties he has house hacked. 

With low down payment options available the house hack is the clear winner. What I would recommend doing is saving money then buying a property with as much down as you are comfortable(Up to 20% to save on PMI) with, Owner occupant loans start at 3% unless you are a veteran than you can get a VA loan with 0% down. Once you have the house then rent out the rooms for income, use that for your mortgage payment then any extra cashflow or income you have save for another property. Once you get enough equity you can even get a HELOC if you wish. I fund a lot of deals with my HELOC, it a cost effective way to fund flips and rentals once you get more experience.

I am a investor and a Broker in North Atlanta. Feel free to reach out to me anytime.