New to Real Estate Investing in MA

[Nick Grammas]

Hi All,

I am 25 years old and graduated from college three years ago. I currently work in commercial real estate and am incredibly interested in investing in real estate and work part time at a restaurant for extra cash to save for investments. I have read books on real estate investing and listened to so many podcasts on investing. My goal would be to target 2 to 4 family properties, ideally on the North Shore, and would be looking for long term holds and the BRRR method. The biggest challenge I see with real estate investing is that the real estate market in the Boston/Greater Boston market is crazy right now. Home prices are very high and, as a young professional out of college, the down payment is a major challenge for me. Honestly, I look at homes for sale in various markets throughout New England every day and want to get in the game, but do not know where to start because of this challenge. I have looked into various solutions like syndications, partners, FHA loans, hard money loans, etc. but am really looking for some advice to overcome this challenge. I would be happy to hear some of your stories and any advice on that would be greatly appreciated.

Additionally, I would like to begin making connections with other real estate investors in my area. Whether that is through LinkedIn, networking events, or just grabbing a coffee, I would love to start building my network and learning from you all. If there are any resources (BiggerPockets or elsewhere) that you suggest I would be eager to hear your suggestions.

I appreciate all of you for taking the time to read this, and please feel free to reply or reach out.

Best,

Nick

[George Post]

Quote from @Daniel McDonald:

Hey @Nick Grammas, I am a 2x house hacker and Agent on the North Shore. I started my journey in 2020 and have purchased two duplexes in Beverly since then. You're not wrong. The market is tough here. Things are expensive and moving fast, but not impossible. If possible, I suggest house hacking. It's definitely the easiest/safest way to get started. Save for 5% down and use a conventional loan so you have fewer hoops to jump through. 

Great points @Daniel McDonald!

Remember: with a conventional loan, you typically need six months of reserves for owner-occupied multifamilies. That means if your mortgage payment is $4,000, you'll need $24,000 in reserves after closing.

 Try to bake in closing costs—either by negotiating seller credits or adjusting the purchase price. It’s a smart way to ease your out-of-pocket burden and get your foot in the door.

One popular strategy—especially if you're single—is the "rent by the room" approach. You can buy a property with as little as 3% down using a conventional loan, then rent out the other bedrooms to roommates. It's a great way to drastically reduce or even eliminate your monthly housing expense.

If you live there for at least two years and then sell, you may qualify for up to $250,000 in capital gains to be tax-free (as long as it’s your primary residence). That profit can then be used to roll into your next property and continue building your portfolio.

It’s a solid way to get started in real estate investing without needing a ton of capital upfront.

Happy to answer questions if anyone’s considering this route!

Cheers,

George

Got questions? Shoot me a message—I’m happy to help.