New to Real Estate · Boston, MA · Member since 2020 · 2 posts · 0 votes
Hi,
I'm just finishing up my degree in accounting and start work this Fall, and I recently discovered BiggerPockets and it's convinced me that Real Estate is the path I want to take to financial freedom and an early retirement.
As an absolute newbie, I am a bit overwhelmed, but am trying to prioritize reading and familiarizing myself with all the jargon, strategies, and steps to take. I am living in the Boston area, and think I'd like to settle down here. I thought house hacking with an FHA loan might be a good place to start, but Boston is such an expensive market. What are some things a newbie in an expensive market should consider? What other strategies would you recommend to someone like me? Lastly, what other things should I be familiarizing myself with as I anticipate my first deal/purchase?
Hey Wesley welcome to BP! I think approaching a market such as yours will be really tough unless you have a partner. Maybe try out of state investing and use the capital to purchase your house hack after you get the money for it?
Congrats on the degree, new job and finding BP. Hopefully, you will be able to use some of your financial accounting skills to be able to analyze your real estate investments. The math is not that complicated once you get used to running the numbers especially on smaller residential properties. I understand you are interested in Real estate but my advice to you would be to narrow in on what type of property you want to house hack single family or residential multi family (2-4units) and what location. Some other questions to consider: Are you working remote or will you need to travel? Are you ok living with tenants and doing the property management yourself or will you need to hire a PM? Do you have a pre-approval letter yet for a mortgage so you know how much you can afford? How much do you have liquid for a down payment? FHA loan is a great tool to use especially for newbies. You could partner with a friend your age with similar goals/values to put together funds to afford a more expensive property, find a mentor and pay them a percentage on a short term loan until you can finance out of the FHA loan, or get a gift from your parents for a down payment (not a mortgage lender but parents can give $15k each tax free and then there is a 5% gift tax anything over that). These are just a couple of many strategies you can use if you get creative just make sure you have your ducks in a row before you waste your time looking at properties you have no chance of affording. Let me know if you have any other questions. Good Luck!