newbie in Massachusetts

[Kevin Schneider]

Hi,

I live in the SE Massachusetts area and I'm looking to buy a small MFH within the next 6 months using an FHA loan where I'll live in one unit and rent out the others.

To educate myself, I've been reading books, listening to BP podcasts, and scouring forum posts/articles posted on this website. I'm also looking to track down/attend an REIA meeting near me - I thought there was an Eastern Mass REIA that met in Rockland but I am unable to find it when I search for it on Google. Does this REIA still exist? If so, does anybody know when and where it meets? Is there a fee that needs to be paid to get in? Are there any others in this area?

My short-term goal is to buy a small MFH where I can live for a year or two until I can refi and purchase a second MFH, while renting out the first property for cash flow. Right now I'm focusing on the Attleboro, Brockton, and Taunton areas as I work in close proximity and am content with my job for now. Within the next 15 years I'd like to own 5 properties with positive cash flows (not necessarily within this same geographical area). In 30 years I'd like to have developed a RE portfolio of small/large MFH that generates enough cash flow to enable me to travel the world amid financial independence. I know this vision may be interpreted as overly ambitious, but I like hard work and I like challenges. Based on what I've read on BP - I know it's possible. 

I'm definitely a novice in regard to landlording, efficient property management and the legal aspects of RE. I also need to develop a better understanding of the RE market in the geographical area in which I'd initially like to invest. Fortunately, I did focus on Finance/Economics in college, so most of the numbers and financial concepts make sense (not that I couldn't improve in that area as well). When I was a kid I liked to read Warren Buffett books and analyze stocks based on financial metrics/projected CF - feel like that skill set is somewhat relevant. 

Anyway, I know I have a long way to go and any advice from the knowledgeable individuals that frequent this site would be greatly appreciated. I'm also looking to connect with any investors, PMs, agents, lenders, RE attorneys, CPAs, etc. in my area.

I'm eager to get this train in motion and I thank you in advance for your time and input!

Kevin

[Jason Slater]

Welcome, @Kevin Schneider! Your plan sounds a lot like mine and seems very reasonable. Getting the first house hack done takes a lot of focus and sweat equity and you'll want to find a good mortgage broker or lender to help you understand all your options and requirements with FHA financing. If anyone is gifting you money to help with the down payment be sure to have it done well ahead of your application and have records as FHA has fairly extensive documentation requirements. Don't underestimate the PMI costs if you're putting down less than 20%, it can take a big bite out of your monthly budget. On the plus side though be aware that if the second unit is in rent-ready condition (or already rented) then you may be able to count ~70% of market rent towards your gross income when applying for your mortgage.