Young & new to real estate. Little money in expensive market

6 Replies

I’m very new to bigger pocket this is my first time posting. I recently discovered bigger pockets and t completely changed my mindset and perspective. It really opened my eyes. I cant stop liatw ig to podcasts ane i jist finished reading Set For Life by Scott Trench. I’m 23 from just north of Boston, Ma. I’m really looking to get into real estate and learn as much as I can. The market in my area is very very expensive right now. I’m currently saving my money and get an fha loan when the time is right. I’m curious to whether I should wait until the market prices go down a little or just jump into it. I worked as a plumber for 3 years and am now a union carpenter In Boston. I have a lot of connections in the trades and knowledge/experience that could save me a lot of money and maximize returns. I’m working my way up to save $25,000 to begin investing. Any tips or advice?
@Jackson Kellogg welcome to real estate investing! Buying a multi family to owner occupy is one of the best ways to get into the game! I did the same thing with FHA loan and put 3.5% down with a 203k loan. You’ll have the benefits of living subsidized while also building equity and learning a lot along the way. Having the skill set that you do in the trades gives you a huge advantage. One of the bigger challenges people face (myself included) is finding competent contractors to trust with projects. Best of luck on your savings goal and getting started with your first purchase. Don’t be afraid to ask any questions on here as you’ll find some very helpful info and great resources.

Here is my advice look for something in your market now run the numbers if anything ever is acceptable once you run the numbers then come on here and ask for someone to check the numbers( we will do that). If you do not have enough for the down payment and its a great deal you could wholesale it or double close on it and make some money.  IF you don't like that option you might be able to get a angel investor or an equity partner. 

The one and only thing that will assure you of failure is not doing anything. 

Practicing the numbers on multiple homes/properties is what will make you great at investing latter on.  

GOOD LUCK!

If you have any questions just tag me and I will try to help. 

@Jackson Kellogg Welcome! Whether this year's market or next, trust your numbers - there are deals no matter what, but it might take time to find something that works for you.

My first multi (JP three-decker) was also a house hack with FHA lending, and it took 18 months to find and win the right combination of condition (FHA has stricter rules on condition, no matter your trade experience), existing tenants, area rents, and location we wanted to live; be patient, be thorough, start looking soon, and trust your numbers. Find a lender and an agent who understand what you're trying to do and will be willing to work with your from square one to keep you moving in the right direction.

In the Boston area, for house hacking especially, cap rates and cash flow will look a bit different than other markets - but our rental market is also more expensive and more stable than elsewhere. For multis, the numbers of colleges and hospitals here really helps cushion from contraction for buy and hold investors, because demand for rentals is always high.

FHA in the Boston area IS possible, and your trade network will serve you well as an investor. Be patient, trust your numbers, find a team you trust as well. Good luck!

Welcome @Jackson Kellogg !

I'm in a very similar situation - 22 and looking to purchase a 2-4 unit on the Northshore this winter.  Even though you're just getting started, it seems like you're definitely on the right track.

I agree with Kate, there are deals in any market - don't let the current hot market delay you for years until something changes.  Establish what numbers you're looking to get from a property, tell everyone that's what you're looking for, and don't stop until you find the property that works!

Get involved with local REIA groups, network on BP, and get FHA pre-approval to improve your odds!

@Jackson Kellogg yes - the real estate agent you are working with can set up access for you. From there, you can customize your search and criteria and get more detailed info on property. Not all information is available for the end user that the agent has, but it’s the best starting point.