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Updated over 6 years ago on . Most recent reply

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Christopher C. Evans
  • Reading, MA
2
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House hacking: upper versus lower end of my budget?

Christopher C. Evans
  • Reading, MA
Posted
Hello Everyone, I’m new to Bigger Pockets and looking to start my first house hack later this year in the Boston area, which is a tough market. I’m in a position where I can either aim to buy closer to Boston at the low end of an excellent area (at the top end of my budget) or I can buy in a reasonable area (North of Boston) in the middle of my budget. From the numbers, both areas typically won’t cash-flow positively at first given my down payment, but it really depends on the specific property. I think aiming for the middle of my budget makes more sense, but is there an advantage to buying in an excellent area at the top of my budget?

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Dan K.
  • Rental Property Investor
  • Boston, MA
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Dan K.
  • Rental Property Investor
  • Boston, MA
Replied

I would tend to agree with @Stephanie P. -- Worst house on the best block.

As others have said, you don't want to be totally at the max budget wise. If a unit needs a new toilet, garbage disposal, painting, roof, boiler, etc., you don't want to sweat it.

As you get closer to Boston appreciation has to enter the equation versus consistent, reliable cash flow. That being said, I wouldn't bank on appreciation -- there are plenty of A+ apartments coming online in Boston.

I tend to like areas where people want to live versus have to live. Finding new tenants, management and justifying improvements is also easier in an area closer to the city.

Finally, if you self-manage, who do you think you'd do best managing? "Young professionals," grad students, established professionals and families all have different priorities and concerns.

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