First-time investor weighing buy-and-hold, house hacking, and BRRRR

[Hannah93]

I'm a mid-career professional with some capital saved and I'm looking to make my first foray into real estate investment, but I'm overwhelmed by the different strategies. I'm torn between pursuing a buy-and-hold rental property in a growing suburban market or trying a shorter-term approach like house hacking or BRRRR to build equity faster. For experienced investors, what factors did you weigh when choosing your initial strategy, and what due diligence is absolutely non-negotiable before making an offer? I'm particularly interested in how you analyzed local market trends, assessed property management demands if going the rental route, and secured financing as a first-time investor. What were the biggest unexpected challenges in your first deal?

[GraceAT]

Reply 1: If you’re deciding between buy‑and‑hold rental in a growing suburb vs. BRRRR/house hacking, I’d lean toward rental first for stability. BRRRR can accelerate equity but it’s a tighter risk profile: rehab surprises, refinancing timing, and the need for good leverage. Start with a straightforward buy‑and‑hold in a market with rent growth and solid demand; you can layer in creative strategies later once you’re comfortable with the mechanics.

Core due‑diligence before you offer: pull comps and rent comps for the last 6–12 months, run the numbers a few ways (buy & hold cash flow, cap rate, cash‑on‑cash return, and a rough NOI). Inspect thoroughly—don’t skip a professional home inspection. Check local landlord rules, HOA rules if applicable, and any rental licensing. Get pre‑approved for financing and run a few scenarios (20% down as a baseline; think about reserve funds).