Aspiring investor with unique situation - how to get involved

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Aspiring investor with unique situation - how to get involved

Nick Parenti
Rental Property Investor · Boston, MA · Member since 2021 · 6 posts · 3 votes

Hello everyone! My name is Nick Parenti and I am an aspiring real estate investor currently located in Boston, MA. I've been reading, researching, and listening to Bigger Pockets podcasts for the past several months after reading Rich Dad Poor Dad and falling in love with the idea of real estate investing. I'm having a bit of a dilemma on what to do next; any advice anyone may have is greatly appreciated. 


My goals and aspirations for my real estate investing is to own long-term buy & hold rental properties. After researching, I know that the path I want to take to get started will be with a house hack. Here lies the dilemma...as I mentioned, I currently live in the Boston, MA area. However, I have plans to travel the world for about a year or so throughout Europe and Asia in summer of 2022. After that, I plan to move out to the Denver/Boulder, CO area and settle down. Therefore, I don't think it's in my best interest to start to set up my real estate empire in Boston in the next 8-10 months before I leave the country for a year, and then move out to Colorado for good. My question to you all would be: how can I use these next 8-10 months effectively to move towards my goals with real estate investing? I look forward to hearing from you all and want to thank everyone in advance for giving your advice!

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Grace Wang
Realtor · Denver, CO · Member since 2018 · 227 posts · 241 votes
4y

@Nick Parenti hey Nick! Such a great plan, and i may be biased, but you’ll love denver.

For the next couple seasons I would continue to educate yourself through books and podcasts and start analyzing deals. I would also encourage you to get connected with a lender and start planning the steps you need to take in order to purchase a househack next year. You might have to adjust your credit score or save some more cash for the down payment. You’ll also get a good idea what you can qualify for when the time comes. Hope this helps!

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  • Grace Wang
    Realtor · Denver, CO · Member since 2018 · 227 posts · 241 votes
    4y

    @Nick Parenti hey Nick! Such a great plan, and i may be biased, but you’ll love denver.

    For the next couple seasons I would continue to educate yourself through books and podcasts and start analyzing deals. I would also encourage you to get connected with a lender and start planning the steps you need to take in order to purchase a househack next year. You might have to adjust your credit score or save some more cash for the down payment. You’ll also get a good idea what you can qualify for when the time comes. Hope this helps!

    4Reply
  • Nick Parenti
    OP
    Rental Property Investor · Boston, MA · Member since 2021 · 6 posts · 3 votes
    4y

    @Grace Wang Thanks Grace! That’s great advice. I’ll definitely seek out some lenders in the Denver area!

    1Reply
  • Ben RhodinBusiness Member
    Realtor · Denver, CO · Member since 2020 · 338 posts · 331 votes
    4y

    Hey @Nick Parenti! I would push you to think about what is possible, and how you can utilize the time that you are given to really scale to your fullest potential. Why not use the next 8-10 months to get a strong baseline, and also get some possible cash flow to help fund your travels!

    I've had clients in similar boats or relocating for a short period to somewhere, where they don't think it's beneficial to pick up a property where they currently are. If you pick up a property in Boston right now as a house hack prior to you traveling. You can maintain it as your Primary residence and fulfill the owner-occupied requirements. I am not an expert in the Boston market, but some potential ideas could be rent by the room, multifamily, or STR. Then you could STR your area while you are away, and you can get set up with a PM to not have to worry while you are out and traveling. Then when you return, you may be close enough to the year mark to pick up a new one here in Denver, otherwise, you can probably use relocating as an excuse to get into one prior to the year mark here in Denver.

    Of course, it will all depend on your capital situation and what your financing options look like currently. But never bad to pick up an extra property if possible. Just another take on it! Good luck and have fantastic travels! Let's connect when you touch down in Denver.

    [email protected]
    2Reply
  • Heather Pick
    Member since 2021 · 1 post · 1 vote
    4y

    Hello Nick! I want to encourage you to start sooner rather than later. Purchase the property now as your primary residence. Rates are still incredibly low, who knows where they will be in the future? Typically you would need to wait a year prior to making the property a rental but there can be exceptions to the rule. Once you are able to make the property a rental, hire a property manager to handle rent collection, repairs etc. Best of luck to you!

    1Reply
  • Cameron Braig
    Atlanta, GA · Member since 2021 · 493 posts · 162 votes
    4y

    @Nick Parenti

    Congratulations on getting started and welcome to the forum. 

    The first thing would be to spend time learning about potential markets and submarkets you would be looking to invest in. Determining which cities are experiencing job growth, job diversification, rent growth and population growth can help provide some filters. From there subscribing to things like a particular metro's business courier or journal can help you understand the market and submarkets better. The best way to secure the best deal is to have the most information, so a year of research, due diligence and immersion can certainly help. 

    Additionally, it could be worthwhile to invest passively into a syndication in order to gain experience and insight as well as hopefully enjoy returns. This has been a helpful strategy for folks as they have gotten started to gain exposure. 

    Best of luck and congrats on getting started. 

    2Reply
  • James CarlsonBusiness Member
    Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    4y

    @Nick Parenti

    At the risk of being a cliche realtor who says buy a house in Denver right now, I would say ... buy a house in Denver right now. 

    The median home price in Denver last month was $575,000. This time last year, it was $510,000. That's 12% appreciation. Even if we have just half that appreciation -- 6% is the average year-over-year appreciation for the last 45 years -- then you're looking at $34,000 in equity gain. You could rent it in the meantime as well. And if you buy in one of the Denver-area cities that allow for short-term rentals, then you can Airbnb and cash flow pretty well. (That's not the case for a traditional long-term rentals.)

    You might also be able to use a second home loan if you plan on visiting out here for 14 days over the next year. I'm always a fan of buying your first place where you live. In your case, that's Boston, but if that is only temporary, I'd be focused on buying where you're going to live before prices continue to go up. 

    Whatever you decide, good luck! 

    [email protected]720-460-1770
    James Carlson Real Estate
    WebsiteView Page
    1Reply
  • AJ ShepardPro Member
    Real Estate Syndicator · Portland, OR · Member since 2014 · 453 posts · 312 votes
    4y

    If you like to start sooner but will be leaving the country, then you should consider being a Limited partner in syndication. I recommend reading the book "The Hands-Off Investor" by Brian Burke. You can check on verified sponsors/syndicators at https://verivest.com/. They do background checks and track the performance of sponsors so you can invest confidently. Happy Investing!

    1Reply
  • Chris Levarek
    Real Estate Syndicator · Phoenix, AZ · Member since 2018 · 903 posts · 1k+ votes
    4y

    @Nick Parenti Would be pretty cool however to get paid while traveling Europe no? What if you could have a full functioning rental or even Airbnb generating revenue for you while traveling the world? What would that look like? Would that move you closer to your goals or farther away?

    Good questions to ask. Start with the end in mind and the choice becomes easier. Location shouldn't play into it as much either. You can invest from anywhere and rent from anywhere. The more important question is, what helps you now move towards your 1 year goal, 5 year plan, etc? 

    2Reply
  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    4y

    Skip the trip, and move to Denver tomorrow.

    Use Google Earth to visit the entire World while moving forward on your business plans.

    1Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    4y

    Save money, reduce your expenses, start learning about the CO market where you would likely invest, and get connected to local investors in that area to get a good grasp once you move there. 

    [email protected]
    The Elle Group5154 Reviews
    WebsiteView Page
    1Reply
  • Paul MoorePro Member
    Commercial Real Estate Fund Manager · Lynchburg, VA · Member since 2015 · 1k+ posts · 1k+ votes
    4y

    Hi @Nick Parenti. Congrats on your success so far! I would get an Airbnb then automate it to manage mostly without you with virtual assistants, etc.  And I would use these next few years to educate yourself in every possible way so you can hit the ground running in Colorado.


    I have a friend who strategically locates the best markets and home types for Airbnb and he’s making over 50% cash on cash returns on multiple homes. Happy Investing and travels!

    Podcast Guest on Show #533
    1Reply
  • Lynnette E.
    Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
    4y

    I would recommend that you look at neighborhoods and areas in and around Denver during this time. Research to see where you want to focus your rentals.  College students, families with children and good schools, up and coming areas, suburbs?  Once you figure out your focus area, then start tracking listing and sale prices and get to know the in and outs of that area.

    1Reply
  • Julie Toh
    Specialist · Mortgage Broker Canada · Member since 2015 · 316 posts · 118 votes
    4y

    @Nick Parenti I think you are off to a good start having read, listened, researched on BP for sometime. Our fellow BPers here have given you some timely advice. I like the old adage, "Don't wait to buy real estate, buy real estate and wait" and this advice has worked for me. I'm curious, have you consulted a mortgage broker to determine your borrowing power? 

    1Reply
  • Nick Parenti
    OP
    Rental Property Investor · Boston, MA · Member since 2021 · 6 posts · 3 votes
    4y

    @Julie Toh

    No, I have not contacted a mortgage broker yet. I am trying to decide what my best game plan is for the next 2ish years here before I move forward…begin with the end in mind. Something else that concerns me is that I am self-employed, and new to it as well, so I fear I most likely will not be able to qualify for traditional financing to buy properties.

    0Reply
  • Ben RhodinBusiness Member
    Realtor · Denver, CO · Member since 2020 · 338 posts · 331 votes
    4y

    @Nick Parenti you won’t know until you try. A mortgage lender may surprise you, depending on what your previous work was. There are circumstances to make things happen. Also depends on what “new” means. Happy to recommend a fantastic one here in Denver.

    I agree that you should start with the end in mind, and I would push yourself to challenge what’s possible. I am always a believer in don’t think everything is black and white. Think about where you would like to be in two years with Real Estate (maybe have two properties through house hacking) and then think ok how can I accomplish this while still being able to travel the world.

    Just a happy thought😁

    [email protected]
    1Reply
  • Nick Parenti
    OP
    Rental Property Investor · Boston, MA · Member since 2021 · 6 posts · 3 votes
    4y

    @Ben Rhodin

    Thank you for the advice, I really appreciate it. My initial thoughts were that I probably couldn’t get anything going for myself in real estate until I return from my trip in 2 years. However, everyone is challenging me and opening up my eyes to the very real possibility of getting started now and having property while abroad. I want to thank you for your encouragement as well!

    0Reply
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