multifamily investing Property

[Tammy Ginsburg]

Hello,

Quick question? 

I live in MA, in which the market is extremely high.  My plan is to sell my  condo and buy a 3 family and live in one unit, renting out the other two.  the way it looks, I probably would break even, or very little cash flow. Rents are high, so that might the things, that same me. Is this still a good investment?  This would be my first house, that I would be investing in.  I want to be sure I am doing things right. Thank you in Advance.

[Ethan Hanes]

Hi Tammy,

One thing I can tell you is that you won’t regret investing in real estate. There’s quite a few factors besides just the monthly break-even. You have appreciation, tax shelter, and debt pay down. Find ways to make the property you buy look extremely attractive. Add amenities if you can, there’s quite a bit of stuff you can do. You can charge extra for a garage parking spot, laundry, utilities, pets, etc. I say go for it. Make sure you talk with a tax advisor to be sure you’re not digging your own grave. I would say, make your financial goal to break even and pay your mortgage. This way, you won’t make any cash flow for the first couple years, but when you decide to exchange or purchase another property, you will have lots of equity. 

Let me know if you have any more questions! Greatest decision you will make. 

Best,
Ethan