Boston, MA looking for first REI deal

2 Replies

Hello all,

My name is Harrison and I am from/live in Boston, MA and I am looking to get into real estate investing. I am new to biggerpockets but have read a couple of the biggerpockets books and listened to over 25 podcasts. I am newly out of college with a small amount of loan debt, but I also only have a small amount of cash. I have a full time job in Boston but the hours are great, 11am-7pm. I figure this could play to my advantage as I would have morning hours to make phone calls and appear places before work.

My question to the community is starting out what folks would recommend. I have been looking into a couple duplexes’ and some 3-4 doors. I would love to house hack with those but don’t know what the numbers would truly be financially, and quite frankly I don’t know how much work it really is to manage that by myself. My other option was to save up for one year and keep gaining connections and purchase a single family with a 20% down payment. I am not sure which options would work best for myself and I guess it boils down to me being intimidated and scared to pull the trigger until I am comfortable.

(Sorry for such a long post folks but I have so many questions as a newcomer)

Thank you,

Harrison

Hi Harrison,

It is extremely hard to find any kind of cashflow deal around Boston. The rental markets are very expensive and the 1% rule is nowhere near possible. You might want to consider house-hacking a bit outside 128 and get a home with as many bedrooms/baths as possible and live in that to build equity/cash to start. If you have free time, you could get your REI license and work part-time for a real estate agency for awhile. The easiest way to get some extra cash in Boston real estate is to work for one of the apartment rental companies and see for yourself how the units are and how much they go for. PM me and I can give you more details about some that I know.

You'll never be comfortable, your first deal is the most important just because it starts you off investing!

@Harrison Smoske If you're going to house-hack, Step 1 is to talk with a lender to see whether you can qualify for a mortgage loan.  I think that's going to be difficult as it sounds like you don't yet have the funds to cover a down payment or closing costs.  You'll also need 2 years of income, though there may be "bank statement" loans that waive that requirement.

A duplex / MFR will help the income situation as lenders will credit 75% of fair market rent as your income for purposes of qualifying for the loan, so in theory, the more units the better. However 5 units an up need a commercial loan, so ideally, you're looking for a 4-plex.

In the meantime, you can try to find an owner financed deal, but those are very few and far between.