House hacking Boston suburbs 20% down
Hello BP forum,
I am an aspiring RE investor and wanted to post my plans and get some feedback.
My wife and I moved out here to San Diego from Boston, and in an attempt to stay here we put our nest egg down on a single family home, only to still struggle to keep up with the mortgage. We are considering selling this spring and moving back to be close to family, and to go for a house hack. Upon selling, we will have enough for a 20% down payment and some cushion to cover some starting negative cash flow, but still want to make sure that we are making a good investment.
I'm new to looking at numbers and have just been practicing on Zillow/realtor and plugging houses into Dealcheck. I've been focusing on Triplex's since duplexes seem to really not work (numbers wise) and four-plex's are hard to find. Anyways, whenever I look into a house, cap rate seems to be in the 4%'s using their defaults for all of the expenses and stuff. I've edited out property management, as I plan to do it myself. Here are a few questions:
1. These investments can be anywhere from poor to excellent when adjusting the appreciation rate. I've read that you do not want to rely on appreciation, but also read that in expensive markets, appreciation is your main driver. Where should I set it when analyzing a deal?
2. Does needing to put 20% down to make a deal reasonable mean that I'm just on the wrong track? I can look further from Boston but don't want to change our lifestyle too much. We will have a dog and newborn with us.
My current neighborhoods that I've been searching have been mostly Somerville, Jamaica Plain, Dorchester, Everett, Quincy. I am open to houses that need some light work, and would even prefer that, as I've enjoyed small projects around the house. I don't know any construction or have and connections to contractors yet.
What do you guys think? Thanks!
Most Popular Reply
Hey Kyle,
Welcome to the forum, and great job laying out your plan so clearly — it sounds like you’re thinking things through the right way and setting yourself up for success.
I’m based out of New England and operate throughout the region, giving me a wide perspective on multiple markets — from Massachusetts and New Hampshire to Maine, Rhode Island, Connecticut, and Vermont. I hold both the Certified Property Manager (CPM) and Accredited Commercial Manager (ACoM) designations, and I’m also a licensed Home Inspector in Massachusetts and New Hampshire.
I own and operate a property management company and am currently building an umbrella brand that brings together my asset/property management, construction and development, and future brokerage divisions under one roof. My goal is to be a one-stop resource for my clients and investors — helping people grow successfully without the stress of bouncing between unreliable or unethical professionals.
My father owns and operates a commercial construction company, and between his network and mine, I have a trusted team across every area of real estate — construction, development, HVAC, plumbing, electrical, painting, paving, framing, finish work, landscaping, trucking, and more.
On top of that, I leverage a full suite of professional platforms — Crexi, LoopNet, CoStar, Moody’s, LandGate, RealNex, and several MLS systems — as well as construction, development, home inspection, and property management programs that allow me to analyze, source, and manage deals comprehensively.
I truly would love to help you, and I’m confident we could build a strong strategy and a great deal that fits your goals. If you have 20% down, we could likely structure something where only 10% goes into your first property, leaving you with another 10% to leverage into a second income-producing property — or even explore options for two additional properties at 5% down each with solid cash flow and ARV potential, putting you in a great position to come out ahead.
My cousin @Jason Wray is an incredible resource on the finance side and can help structure the lending piece so we set you up strong — not just for you and your wife, but for the long-term financial future of your newborn (and congratulations on that, by the way!).
I’ve built everything from the ground up, so I know what it takes — the sacrifices, the late nights, and the rewards that come from persistence and integrity. I believe in building lasting relationships both professionally and personally, and I always put people’s best interests first.
If you end up moving back to the Boston area, I’d love to connect and explore how we can help you hit the ground running. You’re asking the right questions, and your mindset is already in the right place.
Wishing you and your family all the best,
— Christian Welch