New member looking to learn the ropes of REI.

Massachusetts Real Estate Q&A Discussion Forum

New member looking to learn the ropes of REI.

Quincy, MA · Member since 2018 · 15 posts · 6 votes

Hi everyone,

Just recently joined BP and excited to learn from everyone here!

My name is Suzanne Nguyen. I am looking to get into long term REI. I stumbled upon real estate a little over a year now. I am also an active agent working full time. Trying to learn as much as possible from working with buyers/sellers/investors.

For my first investment, I am looking to focus mainly on condos and in hopes of trickling into multi-families. What are your thoughts?

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Abel CurielBusiness Member

Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes

Hey Suzanne,

Welcome to BP!

I think @Corby Goade said it best with regards to the challenges with purchasing a condo unit as an investment.

Most condos in NY require 20% down... Not too sure about MA but just to give you an example...you'd have to put 80K down for a 400K condo... That same 80K could be used as a 10% down payment on a 800K triplex.

You could live on the unit and rent out the other 2 units thus lowering your living costs. You'd then be able to refinance and move onto to the next.

Obviously, you have several other options but I think most would agree that Multi-family is the way to go.

Best of luck to you!

Abel

REbuild Team - eXp Realty5234 Reviews

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Corby GoadeBusiness Member
Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
8y
Welcome Suzanne! I took the opposite road as you, been an investor for a while, just got my RE license.
Every market is different, but generally I shy away from condos as rentals; you usually get little to no land, therefore your investment is in a slowly crumbling structure that you may have very little control over due to an HOA. Some people love condos, but I buy for land and control, and you usually don't get those with a condo.
Good luck out there!
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Raul R.
Rental Property Investor · New York City, NY · Member since 2017 · 493 posts · 386 votes
8y
Condos are fine but make sure you understand all the HOA rules and fees prior to committing to a purchase. I know BP members have mix feelings toward condos, some just avoid them and there are some that’s all they buy. Also be aware you might have less Finance Options if majority of owners in Condo are investors..
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Suzanne Emily Nguyen
OP
Quincy, MA · Member since 2018 · 15 posts · 6 votes
8y
@Corby Goade
@Raul R. Great feedback from you both! Thanks for the warm welcoming. My outlook for starting out with condos in the Boston market as it’ll be easier to maintain and to immediately build equity. Then either refinance or sell and get into a multi family to build a portfolio.
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Abel CurielBusiness Member
Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
8y
Hey Suzanne,
Welcome to BP!
I think @Corby Goade said it best with regards to the challenges with purchasing a condo unit as an investment.
Most condos in NY require 20% down... Not too sure about MA but just to give you an example...you'd have to put 80K down for a 400K condo... That same 80K could be used as a 10% down payment on a 800K triplex.
You could live on the unit and rent out the other 2 units thus lowering your living costs. You'd then be able to refinance and move onto to the next.
Obviously, you have several other options but I think most would agree that Multi-family is the way to go.
Best of luck to you!
Abel
REbuild Team - eXp Realty5234 Reviews
Website View Page
2 Reply
Adam JasponPro Member
Investor · Boston, MA · Member since 2017 · 41 posts · 5 votes
8y
Welcome @Suzanne Emily Nguyen!
I agree with @Abel Curiel, in fact I used this tactic with my first purchase. If you have not already purchase a home, you might consider holding on to your capital and using an FHA loan to purchase a 3 or 4 unit multi as an owner occupied property. This way, while living for free, you can continue to build equity and save for your next investment.
Good luck!
Adam
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Suzanne Emily Nguyen
OP
Quincy, MA · Member since 2018 · 15 posts · 6 votes
8y
@Adam Jaspon Great feedback! Thanks I will consider all the options.
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