I am a newbie and this is my very first BP post! I'm currently living in the greater Boston area and I am hoping to house hack a multifamily property as I start this journey. I've analyzed some deals in the area and the numbers just don't look viable. I know Greater Boston is a very tough market, but I figured as a complete newbie trying to learn the ropes I should probably invest in a familiar market/nearby instead of going long distance. I have a high credit score (800+) and I understand that I should be able to get an FHA loan if I live in this property. Should I give my home base a shot or would I be better off looking elsewhere more affordable? Any advice on somehow making this work as the 1st property given the market conditions in the boston metro is greatly appreciated!
@Linda Tong- thanks - get formally pre approved using whatever hypotehtical scenario you want to use ...once pre approved - look for opportunities ...if you cant locate anything that makes sense close to Boston - then start looking outside oi the city - good luck
Hey there, welcome to BP. You're in the right place.
I live in RI and know some agents that work in the Boston area. I stick around the SE MA and RI area myself just for convenience. Househacking is a great way to get started in the investing game. Im actually cashing out on my househack this month.
You should definitely check home base and start looking around to see what you can make work. Prices are high where you are but so is rent. What ever agent you work with I would recommend making sure they have bought property before themselves and be sure they niche into the multi-family asset class. They will have better relationships established, they will understand the strategy you're utilizing, and will be of more value to you in general.
Also, I would check out the Rhode Island area. I've had a few clients who have moved down here because it's more affordable so they could get more bang for their buck. Of course your lifestyle will have to allow you to move 1-2 hours away from home base but its a great option if you can make it work.
@Linda Tong- thanks - get formally pre approved using whatever hypotehtical scenario you want to use ...once pre approved - look for opportunities ...if you cant locate anything that makes sense close to Boston - then start looking outside oi the city - good luck
Hey there, welcome to BP. You're in the right place.
I live in RI and know some agents that work in the Boston area. I stick around the SE MA and RI area myself just for convenience. Househacking is a great way to get started in the investing game. Im actually cashing out on my househack this month.
You should definitely check home base and start looking around to see what you can make work. Prices are high where you are but so is rent. What ever agent you work with I would recommend making sure they have bought property before themselves and be sure they niche into the multi-family asset class. They will have better relationships established, they will understand the strategy you're utilizing, and will be of more value to you in general.
Also, I would check out the Rhode Island area. I've had a few clients who have moved down here because it's more affordable so they could get more bang for their buck. Of course your lifestyle will have to allow you to move 1-2 hours away from home base but its a great option if you can make it work.
Hi Tyler,
Thanks for the tips! If I'm able to live for free or just pay cheaper rent via the house hack that's great, but I'd definitely prefer properties that would cash flow a bit better so I am very open to looking further out. I have not yet checked out RI area but will look into it!
@Linda Tong- thanks - get formally pre approved using whatever hypotehtical scenario you want to use ...once pre approved - look for opportunities ...if you cant locate anything that makes sense close to Boston - then start looking outside oi the city - good luck
I was in the same spot a few years ago. I am currently house-hacking my second duplex in Beverly, MA. I was so hesitant to house-hack in such an expensive area vs. buy something for 100k out of state and do the long-term game but man I'm happy I invested in my own backyard. Especially when anywhere around Boston is an appreciation beast. I am also an agent if you'd like to talk through any options or just hear about my experience. I'm slightly obsessed with talking about this stuff馃槀
Hi Linda - I'm new to investing too. You're right, Greater Boston is a tough market though I'd bet you could find an off market opportunity if you keep looking. I've also been looking in New Bedford and Taunton. You can find great properties for cashflow there and the T is also coming to both of these cities soon!
Starting out this is an amazing place to employ this strategy. As a few people have said here, Boston is a very compressed market when it comes to returns on cash but it has very strong appreciation if you buy in the right areas. Just remember, if you're house hacking in Greater Boston it might be unlikely to cash flow but you'll off set your mortgage payment in a big way to live subsidized, save up and do it over again. Once you move into the next one you'll have decent cash flow and possibly be able to refi some cash out as it appreciates so less cash out of pocket for the next DP.
Note: make sure you calc the taxes correctly because as you're living in the property you'll get residential exemption in most cases...but then when you move out make sure you're prepared for that to almost double.
Feel free to reach out to talk shop any time, been investing in Boston for over 5 years