All Forum Posts by: Jon McCarron

Hi @Evan Ordway

That's awesome that you are getting started, and house hacking is a great way to do it! My wife and I house hack a 2-family in Beverly, and are under agreement on another multi-family in Salem that we plan to house hack. Should close in February. 

If you have any questions about getting started, or want to ask about our experiences, feel free to reach out!

Jon

Hi @Bolden Brace

The podcast episodes are very addicting! Great way to be a fly on the wall into some great convo's. I pick up something new with every episode. It's awesome way to start learning.

Stay motivated!

Jon

Hi @Nate Ramos

@Andrew Freed does a "Pints and Properties" meetup in Worcester. You may want to connect with him about when the next one is.

Like others have said, you can also check out BP  events page, or join FB groups and get in on their meetups.

Hope this helps, and good luck!

Hi @Evan Leibovitz

I think does all depend on your end goal here. Like others have said, House Hacking is the way to go in my opinion.  If you currently rent, then your house hack target, after rents collected, should leave you with less money out of your pocket then your current rent. Example: your rent is $2500/month, your house hack could look something like this : 3 family purchase, rents collected $3,000 from the 2 units you rent out , mortgage $4000, your out of pocket is $1,000 towards the mortgage. You would be "saving" $1,500/month. I would use that 1,500 to build up reserves in that property until you have enough to feel comfortable to be able to cover any unanticipated expense, or cap/ex. A better house hack is if your rents cover your mortgage entirely. (Even if that is the case, you should still build up reserves).

If you do that with less than 20% down as others have mentioned, then you shouldn't be leaving yourself extended, because you will have that excess cash to cover yourself until you build reserves, find tenants, and do any fix-ups in the meantime.

Hope this helps! 

Jon

Hi @Collin Hays

I'm an Essex boy, and family is from Manchester-by-the-Sea. Love Gloucester and Rockport too. If you are looking for connections in Cape Ann/North Shore feel free to message me! I'll send a PM with contact info. Happy to chat and connect with like minded people!

Have a great day,

Jon

HI @Steven Taylor

Welcome to BP! If you are looking for cash flow, you should be thinking 3-4 unit buildings (5 units and up is considered commercial, which you can start with as well). Rarely does a 2 family work for cash flow. I like to invest in Beverly and Salem on the North Shore, and have been starting up my search for my next property.

Good luck with your search!

Hi @Troy Scarbrough

Welcome to BP! I live in Beverly, MA. I am a real estate agent in the area, and I invest in the North Shore as well. I have a 3 family in Salem, and am currently house hacking a 2 family in Beverly. Working on closing a HELOC so I can start looking for a 3rd property. Strategy is to buy and hold. It's been working great!

What part of the North Shore are you in? Always happy to chat!

Jon

Hi @Jenna Houck

I think it depends on what you want to do. House hacking in greater Boston is a good way to break in to the market. I house hack in the North Shore, been going great so far!

Hi @Ethan Adley Jarrett

That's great that you have this goal at such a young age! I think your strategy of house hacking will be the best way for you to get started (when you're ready). I think you should read "Set for Life" by @Scott Trench. It is a fantastic book for someone in your situation.

You will have to really get your ducks in a row before you take your first step towards investing. It could take a couple of years before you hit your stride, but don't be discouraged! I think things you could do right now as far as real estate goes would be 

-find a meet up in your area

-find bp members in your area and pick their brain (maybe offer your services or time to add value to their life or their situation)

-Self-educate. You should be consuming podcasts and books

-Maybe look into a career that is centered around real estate to get some experience that way. Either way you need to have money to invest (emergency fund, cash cushions, down payment/closing costs, "opportunity" funds, etc.)

Hope this helps! Good luck!,

Jon

Hi @Griffin Francis Eaton

I think a strategy is just to put your cashflows back into the HELOC as well as your w-2/1099 income as well. It is not like paying down a mortgage where the money is "gone" from your bank account. You can still use the HELOC if maintenance issues arises from your properties. Then once the HELOC is paid down enough where you have enough on the balance for a down payment, you can go and buy another property.

I am not sure if that counts as commingling funds, so talk to a accountant or tax attorney before using that strategy. 

Looking forward to hearing some other responses!

Good luck,

Jon