Thoughts on investing in Massachusetts

[David Shapira]

Looking for a little guidance. As a first-time investor I've been hemming and hawing about how to get myself into the game. House hacking a multifamily seems like a great idea, but in the Boston area, with the 5% I can put down, I'm concerned about cash flow once I move out, not even mentioning the lack of inventory right now. And for now I'd like to live close to Boston or maybe Providence.

So I consider other ideas: Use my IRA for a bigger down payment. Buy a distressed condo and BRRRR. House hack a multi in more-affordable Providence. Invest out of state... So it becomes analysis paralysis.

I would love to hear your thoughts and ideas and maybe connect with some of you who have been in a similar situation and hear how you figured it out. I don't need to hit a home run on my first investment, but I don't want to strike out, either.

[Lien Vuong]

Househack is definitely the best way to go if you want to leverage your your funds and get into the game with more limited risk. What seems to be your obstacle next would be the location if you'd like to be in RI or MA which have very different metrics for returns and appreciation and that comes down to what you feel is valuable for you and what you can compromise. What I would do next if I were you is to speak to some people who invest in both market and ask what their experience as a landlord, property owner, tenant relationships, and growth has been in the last 5 years and figure out what's the best route for you. 

You can look online for a low of growth/appreciation data with sites such as city-data.com, US Census, as well as Niche.com to figure out your best market and find out the total investment from there. 

Best of luck!