All Forum Posts by: Jamiez Gaither

Welcome to BP and congratulations on your future graduation! Your interest in house hacking is one of the best ways to initially get into real estate investing. You are far ahead of most college grads already by thinking about doing this.

@Brian J Allen is a great resource for any multifamily in those areas, especially Worcester. 

If you have any questions regarding the lending side of the transaction, please reach out to me anytime!

@Jamiez Gaither

Hi Jamiez!,

That is a phenomenal plan! I totally agree with @Brian J Allen ! I highly recommend checking out the Leominster at well, it is roughly 25 minutes from Worcester & bordering Fitchburg.

In my opinion, if possible I highly recommend acquiring a 3 or 4 unit building with an FHA 3.5% down, FHA 203k, MHP One (3% conventional with no pmi for single family or duplexes, 5% conventional with no pmi for 3 & 4 families. It is a first time homebuyer loan with some restrictions, but if you fit the mold it is definitely something to look into), or Mass housing 5% down etc. There are a ton of great low barrier to entry first time homebuyer programs out there, as well as down payment assistance programs from cities if you qualify to be able to get into a deal with a very low amount of capital out of pocket.

For 3&4 unit multi's your lender will be able to use a percentage of the rental income from these properties towards your DTI (debt to income ratio) to give you a higher pre approval and make it easier to be able to take on more leverage for a bigger asset. It is very important that you do not over-leverage yourself and potentially bite off more than you can chew because the mortgage (principle, interest, taxes, & insurance) & utilities will be significantly increased, but at the same time is also decreasing your risk because you have more tenants paying rent & utilities before it hits your pocket if they stop paying/etc.

You are in a great position, especially working towards squaring away your housing expenses for potentially the rest of your life right after college! Good luck!

Kyle

First key here is that you know where you would like to live!  Awesome!  Next is that you would prefer to own/house hack to renting. Also good.  And you are betting on Worcester,MA!  I would be glad to answer any questions you have if you interested in Multifamily.  Best of luck and welcome to BP.