Cap rate goal for Malden/Everett for first time buyer
Hi all,
My name is Faris, I'm a marketing professional working at a 3D printing company in Somerville. I'm brand new to real estate investing, and plan on buying my first property so that I can stop paying rent. Goal is to get a multi-family unit, not have to own a car, and be a (max) 20 min uber ride away from Fenway or Cambridge.
I plan on using FHA. I've been doing some back-of-the-envelope analysis's on properties every day. I *just* factored PMI into my model, and am realizing how much of an impact it's making on my yearly NOI.
I'm seeing that I probably need to aim for a cap rate of atleast 11% to be in the green YoY. Does this seem right? If I'm investing in Malden/Everett/Medford, what cap rate do you think I should be aiming for?
Would love any guidance and tips on this new journey. Excited to get to know you all.