New Member - Boston, MA

[Donald M.]

Hi all, basically a new member although I just saw that I created an account here 5 years ago (also have to find out how to edit my name) when I purchased my first property outside Boston. I rented out rooms while living here the last 5 years. I am planning on moving into the city, buying a place there, and renting out my current residence, thus becoming a first-time landlord. I spent all day yesterday reading articles and blog posts on biggerpockets and other websites from the 50% rule to taxes to landlording, and am amazed at how little I know and how much there is to know.

I am planning on being in Boston for 1-2 years at least and am looking for a place to be a short-term residence that is close to work, etc, rather than as a rental property. However, I noticed that the price to rent is comparable to the fixed monthly costs (mortgage, taxes, insurance, condo fee) if I were to purchase a place, and I would have control over making modifications to suit my needs. So my plan would be to buy a place, stay 1-2 years, and then rent it out after I leave. It looks like a terrible deal based on the 50% rule because the rental income will be about the cost of the mortgage but as the unit is <800 sq feet and part of an association I don't think there will be much maintenance to do. Can I justify buying it by basically breaking even over the long run (rental income = mortgage) while I will be building equity? 1-2 years of $2000+/month rent seems like a lot when I can apply it to a mortgage. I am also going to look into whether I can obtain a home equity loan on the equity in my first property to make a downpayment on the second.

Am planning on attending some Boston real estate events, look forward to meeting others!