Starting out in New Hampshire and Massachusetts

Starting out in New Hampshire and Massachusetts

Member since 2019 · 2 posts · 1 vote

My name is Michael and I am looking to return to real estate. I live in New Hampshire, (a bit north of Concord), and work in Lexington Massachusetts, 70 miles one way. Regardless to say, the commute is killing me. That said, I am willing to travel for a deal, especially if I am working for myself. I dipped my toes in real estate investing when I bought a 3 family in Manchester in 2008. After a few years I got my real estate license to sell that and buy a home for me and my wife (my philosophy was why pay someone else to sell and buy when I could get paid doing it). Regrettably, I let my license lapse. I am considering getting it back.

I am getting very burned out with my job and the associated commute and I have decided fully commit to real estate investing. I know it’ll be a while before I can quit my job, but I know this is the right direction. I am reading and listening to everything I can get my hands on. That said, I have always suffered from “analysis paralysis” and been more of an observer. I’d like to go outside my comfort zone to get a few deals done, whatever they may be to build the confidence. I do not currently have a ton of liquid cash, but I would be willing to take out a loan from my meager 401K to finance a deal if necessary. I do have a bit of information overload at the moment. So I was wondering, hypothetically what would you do as a 40+ year newbie investor in my area (NH or MA) with very limited funds to get the ball rolling? Are there any investors in my area who would be willing to sit down for lunch or dinner (I’m buying) to allow me to pick their brain? Are there any investors in my area that need help on any aspects of their projects that I may work on?

Thank you in advance,

Michael

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Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes
7y

Hi Michael, 

It is a difficult thing for people to transition into real estate while holding a full-time job. I was lucky that I got laid off after 9/11 and so can transition into real estate with my unemployment pay supporting me. Of course it helps to have a spouse working full-time as well.

I now invest in multiple things in real estate and have four different kinds of passive income streams related to real estate ( well being a landlord is not as passive as most people think but tax wise is still considered a passive income unless you elect to be a real estate professional, which could have other not so good tax consequence).

 It’s getting very difficult to find good deals in Massachusetts within 30 minutes from me. In fact New Hampshire could be a better place for you . I am thinking of looking into New Hampshire‘s market as well.  I am meeting with an investor who is doing opportunity zone investment in Manchester today. That’s one of the area you can look into if you had a lot of gain from stock market in the past couple years. Feel free to PM me for any questions.

However, I do agree with Sean that you could house hack a multi family in Massachusetts that’s closer to work.  Once you save in commute time, you can use that time to look for more deals. Lowell and Dracut  Area should have something that will work for you number wise. 

 One size does not fit all.  Other peoples investment strategies may or may not fit your investment goal. The best really is to see what other people are doing and evaluate whether that’s a good choice for you. Besides, the strategy that works for you now may not be the best strategy that will work for you in 10 years. Biggerpockets is definitely the place to learn.

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  • Investor · Campton, NH · Member since 2010 · 285 posts · 143 votes
    7y

    Hi Michael,

    Happy to meet up at some point when I head down that way (I'm up in the Lakes Region) and share what I learned doing 75+ deals and watching my net worth go from $1.4MM to -$300k during the crash 😳. I'm still clawing my way back and being pretty careful about the deals I do, obviously! Real estate is a great way to build wealth and I wish you the best in your endeavor!

  • Real Estate Investor · Dracut, MA · Member since 2011 · 104 posts · 35 votes
    7y

    @Michael Jakubowski

    Too many stories to tell.

    Presently in process of updating property getting it to sell. (1 March tenant moves out)

    I have another property in the process of flipping. (Access to it on ! May)

    Presently have 10 properties.

    During my hay day I had 34 and worked full time.

    Just before the first housing crash in the 1980s I and my wife purchased our first house.

    I was confident I could by and investment property.  I had dinner with Bay Bank VP of mortgages and I was trying my best to get a loan.

    His advise was to save up.  A crash is coming.  The bank just opened an office for foreclosures. I asked what was a foreclosure.

    I live in Dracut, Ma on the border of Ma/NH.

    I believe another housing correction is coming.

    I believe multiple streams of income is best.  

    Paul Donoghue

  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    7y

    Hi Michael,

    Thanks for your sharing your story, I think the predicament you're in is not atypical and that's the spark that's needed to really dive in and change your financial story. I do investing in both states and have transitioned into a career helping people invest in real estate. I found that having that background really helped to make my value proposition more convincing. 

    Happy to get coffee with you when you're free. Good luck making your decision.

  • Lender · Salem, NH · Member since 2014 · 46 posts · 23 votes
    7y

    Hi Michael, 

    Welcome back to real estate. I  work in Salem on the state line so I deal with a lot of folks looking in both states. I live in Manchester and have a few properties in Southern NH as well. 

    Since you mentioned you hated your commute, and had limited funds, moving into a 2-4 unit property closer to you job may be a great option for you which you can accomplish with very low money down. 


    Would be happy to discuss your financing options anytime. Let me know how I can help. 


    Thanks! 

  • Developer · Windham, NH · Member since 2011 · 205 posts · 64 votes
    7y

    Hi @Michael Jakubowski

    welcome to the site, BP has a tremendous amount of information to help you

    I'm a local investor in the New Hampshire and i would be more then happy to help you out with any questions you have

    we have network meeting at Nashua on the 3rd Wed of the month and it great place to meet with others real estate investor and we have numbers of deals done after people meet in our group, you can find more at Real Estate Events and Happenings Look forward to seeing you around! PM me if I can help

    Wish you all the best!

    Gal

  • Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes
    7y

    Hi Michael, 

    It is a difficult thing for people to transition into real estate while holding a full-time job. I was lucky that I got laid off after 9/11 and so can transition into real estate with my unemployment pay supporting me. Of course it helps to have a spouse working full-time as well.

    I now invest in multiple things in real estate and have four different kinds of passive income streams related to real estate ( well being a landlord is not as passive as most people think but tax wise is still considered a passive income unless you elect to be a real estate professional, which could have other not so good tax consequence).

     It’s getting very difficult to find good deals in Massachusetts within 30 minutes from me. In fact New Hampshire could be a better place for you . I am thinking of looking into New Hampshire‘s market as well.  I am meeting with an investor who is doing opportunity zone investment in Manchester today. That’s one of the area you can look into if you had a lot of gain from stock market in the past couple years. Feel free to PM me for any questions.

    However, I do agree with Sean that you could house hack a multi family in Massachusetts that’s closer to work.  Once you save in commute time, you can use that time to look for more deals. Lowell and Dracut  Area should have something that will work for you number wise. 

     One size does not fit all.  Other peoples investment strategies may or may not fit your investment goal. The best really is to see what other people are doing and evaluate whether that’s a good choice for you. Besides, the strategy that works for you now may not be the best strategy that will work for you in 10 years. Biggerpockets is definitely the place to learn.

  • Investor · Campton, NH · Member since 2010 · 285 posts · 143 votes
    7y

    @Marina Wong when you mention being a real estate professional, are you referring to IRS 'Dealer Status'? If so, what do you feel are the pro's and cons of this?

  • Retirement Accounts Attorney · Southfield, MI · Member since 2017 · 3k+ posts · 1k+ votes
    7y

    @Michael Jakubowski

    Welcome to BP.

  • Member since 2019 · 2 posts · 1 vote
    7y

    Thank you all for your reply and the great information. It will be difficult, but I will make it work somehow.   There is a ton of great ideas and information here.  I would like to follow up with some of you individually where it makes sense.  When I moved back to NH from Texas in 2008, I did buy a 3 family and moved into one of the units, unfortunately, I am not in a situation where that would work for me again. As an aside, I regret selling that place every day.  

    What are your opinions on raiding a 401K to finance real estate?  At least for the first deal?  in all honesty, I can only pull out ~25 K, but it's better than nothing.  

  • Investor · greater Boston and greater Tampa areas · Member since 2013 · 100 posts · 25 votes
    7y

    @Richard Dale-Mesaros

    I am not familiar with the Dealer Status. I know being a real estate professional can allow you to claim real estate paper loss against your ordinary income. However it also means you might pay income tax for something that you would otherwise claim as passive income. Of course consult with you accountant.

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