House Hacking in MA - stuck in analysis paralysis

[Kasey Windeknecht]

Hey There! Got approved for an FHA loan here in Massachusetts and looking to house hack my way into my first deal but am having some real trouble finding any properties that meet the 1-2% and 50% rule and find myself stuck in analysis paralysis and not able to bring myself to put in any offers yet!

Any advice from investors working in areas like MA where home prices are super high? 

If house hacking is it safe to say to focus on the second calculation which would be after we move out and are renting all units? 

Current Numbers for year 2 after move out on a property I am interested in: 

purchase price $570,000 

both units 4beds 2 baths - 1 is currently renting for $2000 - 2nd unit after some minor touch ups would rent for $2500. Leaving us with $4500 in income potentially more if we re rent 1st unit for $2500 as well 

Mortgage, taxes & ins would be right around $3600

[Lien Vuong]

Congrats on the first move. Depending on the area in Boston, it would be fairly unrealistic to be aiming for the 1-2% rule unless you're about 1.5-2h from Boston proper. Due to the fact that purchase prices are going to be high in these markets as well as higher competition, it would make debt load high (hence the $3600 monthly) so if you tend to stay within 20 miles of Boston it's best to put your expectation that it's going to be cash flow positive rather than the full 1% rule. You're still able to put your $ to work. I had a client who did this about 18 months ago purchasing a 2F in Chelsea for $535k with $10k rolled in for closing costs and we just closed on the sale of that duplex for $705k with plenty of equity to move forward to the next purchase and grow.