Is it Feasible to Househack using Rent-to-Own in Boston, MA?

Question

I'm a Boston University college student, and I don't want to live in the dorms anymore, so I'm planning on using the rent-to-own strategy to find a place to stay as well as to use for househacking. I'll only have to pay monthly rent and an option fee to move in, and I plan to find tenants and charge them a monthly rent that will cover my rent and allow me to live there for free. Ideally, I'd find a more run-down place and fix it up a little so that I can sensible charge more for the rent. Once I graduate, I'll hopefully find a buyer who is offering more for the property than I originally planned to buy it for, that way, I can use the difference to pay off my tuition.

Will this be feasible in the Boston University area?

Lien Vuong · Answer

Ive never seen a R2O opportunity in the BU area unfortunately. This is not a zip code that the sellers needs to make those types of contracts with buyers when there's ready and able to buyers with cash to buy these units for investments unfortunately. Perhaps you can try in other nearby states.

Nicholas L. · Answer

@Reina Phee

just house hack. and don't worry about trying to find something run down or combining a bunch of strategies.

Abel Curiel · Answer

Hello Reina!

This is a great strategy. Its also good that you have your focus on value-add properties.

From my experience (in NY) most sellers are opposed to seller/owner finance deals, rent-to-own, and other creative deals. The main reason is that sellers prefer to cash out, get top dollar and separate themselves from the property at closing.

That said, it IS possible in any market depending on the seller's motivation and desired timeline to sell. We are targeting a Queens, New York property (in a high-demand area) with similar creative purchasing terms. This property is a bit overpriced but the strategy allows the owner to get their price while allowing the purchaser to get in the door at a preferred interest rate.

To find out if/how this is feasible near Boston University, I'd recommend using BiggerPockets' Find an Agent feature to chat with an investor-friendly realtor who is active in the market.

All the best to you on this next step in your journey!

Abel

Lisa-Jean Zhao · Answer

Abel, Great suggestion!

Is it Feasible to Househack using Rent-to-Own in Boston, MA?

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