Can I Afford a Multi Family in MA

Question

Hello Bigger Pockets I’m wondering if anyone could help me know if I can pull off buying a multi family property preferably a 2 family in south shore or even close to the Boston area. I’m 21 and have 35K saved to make a down payment and make 40K a year but I’m a union electrician and my salary will increase to 100k a year in 3 years. Will I still be able to pay the mortgage with two units being rented out making a limited amount of money at my full time job  I know mass real estate prices are higher than normal.

Charlie MacPherson · Answer

@Chris Munichiello Maybe.

The lowest down payment loan available is Mass Housing. 3% down.  They have had grants for closing costs and down payment assistance up to $22,000.  I know they now have a program that lets you finance closing costs with a 1% 2nd mortgage.

Here's one (not my listing) in Middleboro. 57 Everett St.  Duplex listed at $319,900.  Each 2 BR unit rents at $1,000.  Rents are well under market as the average for a 2 BR in Middleboro over the last 6 months was $1,379.

The average rental was on the market for 29 days.  Not lightning fast turnover, but not bad either.

Middleboro is located at the intersection of RT 24 and I-495.  It also has commuter rail access to Boston, so it's a great place for commuters who are looking for a lower cost of living, lower crime rate and a quieter way of life.

So that's just one of many possibilities.

Lien Vuong · Answer

Hi Chris! I definitely echo @Charlie MacPherson in the fact that there are many properties that would fit your $35k down payment budget. I think what's important is what areas are you looking for specially and what is your cash flow goal?

You can buy a 2 families in Everett for example right now for ~$650, I know of one that has a bonus unit that you can live and 'house hack' and still have the other units be rented out and cash flow around $500/month while living for free. Metro Boston properties appreciate much more aggressively than secondary markets that are 15-20 miles outside of Boston.

There are many government incentives to home purchases and given that you're in the trade there are some renovations that you can take upon yourself to force appreciation and build equity upon.

While your income is strong and clearly you're good at saving it's important for you to have a conversation with lenders to see what you would actually qualify for because it's based on Debt to Income and credit not necessarily what you can 'afford' monthly.

Charlie MacPherson · Answer

@Dieggo Goncalves It's available through any lender who offers Mass Housing loans.  Most mortgage brokers do as well as community banks like Rockland Trust, Eastern Bank and Bridgewater Savings.

PM me if you would like contact information.

Dieggo Goncalves · Answer

Great detailed response!

is that info open to the public, or mls only?

Aaron K. · Answer

It depends on what they rent for and what the property costs but you could live in one unit and rent the other thus helping contribute to your living costs

Can I Afford a Multi Family in MA

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