Thoughts on investing in Massachusetts

8 Replies

Looking for a little guidance. As a first-time investor I've been hemming and hawing about how to get myself into the game. House hacking a multifamily seems like a great idea, but in the Boston area, with the 5% I can put down, I'm concerned about cash flow once I move out, not even mentioning the lack of inventory right now. And for now I'd like to live close to Boston or maybe Providence.

So I consider other ideas: Use my IRA for a bigger down payment. Buy a distressed condo and BRRRR. House hack a multi in more-affordable Providence. Invest out of state... So it becomes analysis paralysis.

I would love to hear your thoughts and ideas and maybe connect with some of you who have been in a similar situation and hear how you figured it out. I don't need to hit a home run on my first investment, but I don't want to strike out, either.

Hi David, If I was you, I would HOUSE HACK. My first property was a condo, but I was paying for all of the expenses. If you get a 2, 3, or 4 unit property, your tenants will pay most of your expenses. I think that is the best way to do it!

Try the New Bedford, Fall River, and Taunton markets. A house hack. Your #'s should work well in these areas, mainly FR and NB.

@David Shapira House hacking in Boston can be great but its more of an appreciation play then cashflow when you move out.  The multis out there don't cashflow as well as the areas farther away from the big city, but the value of your home will go up  much faster.  Basically you need to ask yourself is this something you want or are you really looking for cashflow now.  If its indeed cash flow I would suggest you take a look at some other towns a little further from Boston such as Framingham and Lowell.  You will get a mix of cashflow and appreciation there.  

Househack is definitely the best way to go if you want to leverage your your funds and get into the game with more limited risk. What seems to be your obstacle next would be the location if you'd like to be in RI or MA which have very different metrics for returns and appreciation and that comes down to what you feel is valuable for you and what you can compromise. What I would do next if I were you is to speak to some people who invest in both market and ask what their experience as a landlord, property owner, tenant relationships, and growth has been in the last 5 years and figure out what's the best route for you. 

You can look online for a low of growth/appreciation data with sites such as city-data.com, US Census, as well as Niche.com to figure out your best market and find out the total investment from there. 

Best of luck!

@David Shapira I came across these same challenges in Massachusetts… my solution… out of state BRRRR in a more investor friendly market. Closing on our second house this year on Monday, from a wholesaler that was interviewed on the BP roomie podcast!

Happy to connect and share more about my journey.