Need advice in Massachusetts

[Andrew D.]

I am new to the site, and I was wondering if anyone could provide me with some advice on my situation. I currently live in Massachusetts, and I would like to start investing in multifamily units, and renting them out. I am at the early research stages, so forgive me if I ask some not so smart questions.

I currently have around 80K-90K to get started for a down payment. I have been looking at properties in the Medford, Malden, Somerville, Woburn, Stoneham, Wakefield, Melrose area. All of these properties cost between 500K-800K+. I reached out to my bank in regards to obtaining a mortgage, and I was told that I would need to have a 25% down payment to get a mortgage on a multifamily investment property. That means I would need to have at least 125K- 200K for a down payment to purchase one of these properties.

• 1.Does anyone have any suggestions on how I could receive a mortgage on one of these properties without having a 25% down payment

• 2.Alternatively, does anyone know of any other decent cities/towns in MA where I could find multi family units for under 400k? I know areas like Lowell, Lawrence, Lynn, and Worcester have plenty of these properties available, but I don’t know how I feel about investing in properties in those areas.

Thanks in advance for your help!

[Stephen Beaudoin]

Hi @Andrew D., if you're planning on living in one of the units, you can typically get the down payment much less. 

I own and live in a 2 family in Woburn and was able to get in for just 3.5% down because I live in one of the units.