Seeking advice: Feeling stuck

[Avery Heilbron]

Hello BP,

I have been going to go see houses as well as analyzing deals  for a potential househack in the Boston area. I have been looking at the Everett/Chelsea area because of the potential upside for the future as well as it having the lowest barrier to entry for a multifamily in the area. Most 2 units range from 550-625 and 3 units from 600-725.

In my first deal I am not really trying to buy a total gut job . I am looking for something that I can live in and rent out that is the standard for the area. As time goes I would fix up the place etc. (Not trying to be a slumlord). 

The trouble I am having is because I have gone to a few lenders and the highest I have been pre-approved for is 525k for a 2 family and 625k for a 3 family. Most options in that range are usually a total gut job or if it's the type of place I want to/ can get in to the offer point would be well below my competition as well as an FHA offer which is already less enticing. Essentially my lenders have said that I need to make more money (I make 65k/ yr) or I can find a single family. It is also worth noting my credit is only 6 months old. It is however quite solid at this stage for how young it is(700+).

I am feeling stuck because I am wondering if I should wait and save even more, or buy a single family (where I will also have low purchasing power), find hard money, or something else. I only just graduated and get a 6% raise for the first few years so my salary will not be increasing very quickly. 

I am getting slightly discouraged when I see these househacking opportunities pass me by. I am having trouble answering the "How can I afford it?" question

Any and all suggestions are welcome.

[Ann Bellamy]

Any multi that needs significant work is not going to qualify for FHA financing anyway, so you can't combine FHA and a property needing rehab. And a single family isn't going to provide you with income to pay the mortgage, or the learning experience of being a landlord.

You are in a very expensive market, but Chelsea/Everett are less so.  So network for offmarket properties and continue to save.  Renting and saving is not the end of the world. Especially when we are approaching the top of the market, IMHO.   Live below your means for a while and save more money.  

Also, message me and I'll give you an additional resource for finding offmarket and wholesale properties.