New to home buying - Boston area
Hi All,
I've just caught the bug for wanting to grow my investment portfolio and home buying is top of my list after just finishing Rich Dad Poor Dad. I'm from Rhode Island and have lived in Boston for over four years so I'm searching for a 2-3 unit home as my first purchase. I'd like to begin growing my own portfolio of cash flowing properties to hold onto long term.
I've been saving for a house under the impression I needed 20% to be safe but have since had my eyes opened after going to a local event NetWork to Grow Your Net Worth and since then I've been doing new research. At first my biggest internal struggle was how much do I want to put down (3.5% - 20% AHHH) and how much can I spend to get a positive cash flow once I move out and have full rental streams - I've come to the conclusion that it depends on the deal. Seems each unique deal has a tipping point based on market rents.
I'm interested in a 2-3 family home that I'd live in for a year or two, using the BRRRR strategy to jump into a second home (maybe a single family for myself). In college I worked for a private investor that owned 5-6 three family homes in RI where I learned how to do full interior demo and renovations so I'm open to putting some sweat equity into my purchase.
I currently work in commercial real estate doing national tenant rep.
Most Popular Reply
Hey Kyle and welcome!
If you can get into a house hack for 3-5% down and avoid PMI, that's your best bet. You can eliminate most, if not all, of your housing costs and use that savings for the next property.
I think your first step, if you haven't done so already, is to apply for a mortgage to see where you stand. Then you can really make your next move. You'd be surprised how many want to buy in the Boston area but don't qualify for enough to buy and have to look in a different market.