Moving to Massachusetts, seeking advice and to build network
My background: I'm an owner occupier of a duplex which underwent moderate rehabbing of both units after we purchased it. I work in finance and live with my wife and pre-k children.
What's Happening: After living away from Massachusetts for about 20 years, I am moving back.
Goals:
- Accumulate more real estate which I can rent out, ideally closer to cash flowing is better (I realize this will be difficult in Massachusetts, especially some areas)
- Utilize the benefits being an owner occupier - low down payment and low rates
- Although I'll move to Mass. in a few months, in about 18 months, I'd like to land in a town with excellent schools and in a property that we will live in for the next 20 years; ie, not constantly move my family
Approaches:
- Approach 1: Purchase two properties in the next year
- The first property would be one that we would live in for a year, then move out of and rent thereafter. Given the limitations I have around down payment money and debt servicing, it's likely that the first property would have to be a SFH or condo and will need to come somewhat close to cashflowing; We'll need at least 1500sf to live in - hence why I believe that I wouldnt be able to afford a MF - the price would be too high to afford a place that can fit us and another unit and then also purchase a subsequent property; I am not opposed to some moderate rehabbing, but any significant capital devoted to rehabbing would eat into either the downpayment for the next house, or, if part of a loan, add to the interest payments (affecting cash flows); The location wouldnt have to be ideal, as we would move out in a year (assuming I dont lose my job)
- The second property we would purchase after living in the first property for ~12 months and then live in it for the next 20 years; It could be a MF, but could also be a SFH
- Approach 2: Purchase one property (- a 2, 3 or 4 family - ?) and live in it for the next 20 years; In this case, moderate rehabbing is more acceptable; Expansion possibilities would be great; Cash flows and down payments would be less of a limitation, the total purchase price could be higher; This could happen in the next few months or, if not then, any time in the next 18 months; But if not in the next few months, I'll need to rent a place in the meantime
Locations: I'm mostly looking west/northwest of Boston - around 95. For a property in which we'll live for the next 20 years, the school system matters a lot. In Massachusetts, Lexington, Winchester, Arlington, Belmont, Bedford, Lincoln, Concord, Lynnfield and Westford would all be fantastic, although even the lower end homes in that area are going to be a stretch for us to purchase. If we're to end up any of those, the property will likely be smaller and older (ie afforable). For a home that's temporary (ie live in one year before renting), the location is less critical, but the price (ie downpayment) and the ability to cash flow carry more weight. For a home that we live in temporarily (1 year before renting it), in addition to the above towns, the surrounding towns are also possibilities: Watertown, Burlington, Woburn, Reading, Wakefield, etc.
Ask:
Given that I haven't been in the area for my adult life, I'm seeking advice about the various locations and recommendations for people to work with who are familiar with the type of purchases I want to make. There aren't that many MFs which fall into my price range on MLS, so any off market deals would be welcome. As such, I'm looking for:
- Agents with familiarity with those areas above and investing/multi-families
- Wholesalers, off-market listing source recommendations
- Financing recommendations
- Advice on my approach / strategy
- Insights about the local markets listed
- Recommendations about the towns I've chosen or not chosen
Let me know if there are any questions about the above and what additional information you'd need.
I look forward to hearing from you all!