Investing as an international student in boston with $80K

Investing as an international student in boston with $80K

New to Real Estate · Boston, MA · Member since 2020 · 5 posts · 2 votes

The title says it all. I am currently under F1 Visa status (Student Visa) and get my green card within a year. I have $80K cash, I go to Northeastern University, Boston MA. I have an additional $500K invested into a property (but this was a requirement to get my greencard). This $500K will be given back to me within a few years time. When I do get it, I want to be prepared to best know how to invest it.

My question is, what do you think is the best strategy for me to get started right now?

As a student of economics, I know interest rates are super low, and prices are surging as supply is low of listings. I have done my research and the house market is bound to correct itself and see a crash (minor or major) starting at the end of this year and last at least 2-3 years. I don’t want to miss the opportunity of taking advantage of an opportunity like the 2008 housing crash (as sad as it was).

Very interested in the BRRR method, although still trying to make sure if it will work in my case.

I have been super serious about getting an FHA loan and househacking, especially because $80K down as the 3.5% down payment requirement means the property would be worth more than $2million if I'm not mistaken, but have been told by realtors I spoke to that it may not be "competitive" or sellers may not want FHA appraisers so avoid selling in the Boston area. Do you think this is the best way to go about it? Or should I opt for a traditional loan with 20% down?

I have also been serious about duplex and triplex etc, but problem is it is difficult to find in Boston. I would be open to condos if the opportunity presents itself. I need to be close to my campus too, I can potentially get a car and drive to campus as I only have 2 classes per week, obviously wouldn’t want the commute to be more than 1 hour.

I study Computer Science as a grad student and expect a high paying job once I graduate (entry level is $100K) which would be my income, but currently I am supported by my dad.

My ideal goal is to generate cash flow, even if it is $10 in the beginning. I want to start a portfolio and grow it out long term.

Also, why is literally every multi-family property built in 1900 with fieldstone in Boston?!? That’s like the worst foundation to have, is it not?

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Lien VuongBusiness Member
Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
6y

"Also, why is literally every multi-family property built in 1900 with fieldstone in Boston?!? That’s like the worst foundation to have, is it not?" - WELCOME TO NEW ENGLAND! haha 

I think your best bet is to go FHA but you would unlikely qualify for that as such that you do not show income and do not have the residency status to purchase the property for primary residence. Your $80 would likely be best used for investments as a passive financial partner in deals and scaling the money from there. I would gain as much info and network in the BP and outside of it as much as possible and move forward.

You still have to learn the geography of Boston so it would be a great idea to start taking trains to various locations and understand their values, character, as well as appeal (and lack of appeal). Thats a good indication of market research and you'll understand housing better that way. 

Good luck!

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  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    6y

    "Also, why is literally every multi-family property built in 1900 with fieldstone in Boston?!? That’s like the worst foundation to have, is it not?" - WELCOME TO NEW ENGLAND! haha 

    I think your best bet is to go FHA but you would unlikely qualify for that as such that you do not show income and do not have the residency status to purchase the property for primary residence. Your $80 would likely be best used for investments as a passive financial partner in deals and scaling the money from there. I would gain as much info and network in the BP and outside of it as much as possible and move forward.

    You still have to learn the geography of Boston so it would be a great idea to start taking trains to various locations and understand their values, character, as well as appeal (and lack of appeal). Thats a good indication of market research and you'll understand housing better that way. 

    Good luck!

  • Rental Property Investor · Charlotte, NC · Member since 2017 · 271 posts · 259 votes
    6y

    $80,000 is a good amount to start in a lot of markets but it's going to be a challenge in Boston since you are not bankable until you get a full-time job out of school. Banks want to see that you have steady w-2 income or 2+ years of 1099 income. 


    I would recommend looking at other options of investing more passively or partnering with someone. You can also spend time educating yourself through BP, podcasts, and books so that you'll be ready to hit the road running when you're able to get financing.

  • Real Estate Agent · Boston, MA · Member since 2016 · 106 posts · 69 votes
    6y

    @Khalid Khan lol that last sentence is gold. Welcome to greater boston! 

    As for your question, as others have mentioned, right now you are not really "bankable" until you get your job and can show consistent w-2 income. Also with FHA, you can certainly do that but do know that there are county limits for max FHA purchase price--I dont believe there are counties that will allow you to buy a $2M multi family on an FHA loan, you would really have to go jumbo loan.

    So in terms of what to do, it depends on your strategy. You obviously have some strong feelings about a possible correction, so up to you whether you want to invest now or wait for this potential correction (though Im on the camp that even if a national correction where to happen, I think the impact in boston would be negligible). If you wanted to do something today, honestly your only real play would be to passively invest in someone else deal--that way you can make some good returns on your money plus learn from an experienced operator. I would network and speak with different people to find good opportunities. Happy to answer any q's you may have! 

  • Real Estate Agent · East Boston, MA · Member since 2020 · 14 posts · 0 votes
    6y

    Hi @Khalid Khan, if you don’t have a steady income, getting a loan is unlikely without a co-borrower. 

    Once you have a steady income, Boston is certainly possible to meet some of the goals you outlined. There’s lots of options in various neighborhoods.

  • Real Estate Agent · Minneapolis · Member since 2019 · 338 posts · 219 votes
    5y

    To me the tricky part is financing as a student. There are asset-based lenders out there, but often times those notes will have higher interest rates.

    Did you end up pursuing this goal? Would be super curious to hear how it worked out!

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