The brokerage one is also self-directed but works more like a traditional 401(k) in that the investments are in equities and such.

I would recommend house hacking especially if it is your first deal for couple of reasons : - will bring down your housing expenses - find a property with some value add options ( use minimal down payment and use your remainder of cash for improvements ) , this will give you a boost in equity that can be used to buy more RE later- self managing via house hacking will take out property management expense and will teach you more on RE investing - house hacking will also give you the best loan product and chance to enter in high appreciating neighborhoods with very less money 

By focusing on these types of investments, I've managed to build up around $5 million in equity.

It has been a significant value add project so I have about $1.2m in equity. 

It was my first home and turned into a fantastic rental as we upgraded.I would also consider when you upgrade to find something that could use some work; we bought a fixer-upper and have added well over 100k in equity because of it. 

For instance, if you're aiming for quick growth, a property rich in equity might be more beneficial than one that's cash-flow rich but equity-poor.

@Brian Christensen You can't really expect to have built in equity when you buy a turn key.

I believe you can refinance out of FHA if you already reached 20% of the purchased price in equity to get a conventional loan.

There are a couple of points astray with this scenario. 1st, your math is a litte off a basis of 252.5 with a current valuation of $325k doesnt get you close to 100k in equity.

well if you can find another rental in Houston for a down payment of 25k (amount you have in equity) and it cash flows at least $220 per month (890-670) then why not?