Multi-Family First Time Investors Greater Boston Area

[Anthony Simboli]

I am fairly new the the BP forums but have been doing some research for quite some time. I was wondering if there is anyone on here who has done some investing in Multi-Family properties in the Greater Boston Area. If so, does anyone have any tips, or things to look out for? Any information would be greatly appreciated. I live in New Hampshire so I am not to far from Boston so I am familiar with the towns but not so familiar with the investing at this point in these locations.

Also, please note my partner and I will be occupying one unit and plan to rent the other units. We love being in Boston and with the FHA loan requirement we must occupy the building. We plan to hold this property for some time.

Thanks in advance!

[Brett C.]

Hi Anthony.  House hacking is a fantastic strategy - I wish I won that battle with my wife years ago when we bought our first house :) 

One thing to watch out for with house hacking is your criteria. You are buying a place for you and your partner to live and that's awesome, but you are also buying your first investment property. Those are two different sets of criteria that could be in conflict. My recommendation: first and foremost establish your INVESTOR criteria: how many units, what terms, is your criteria to make money when you buy? If so you need to buy at a discount to market value, what does that criteria look like? 5, 10 20% below market? What do you require for cash flow and ROI?

Nail down that investor criteria and then evaluate property through that lens and remain committed to your criteria! Example, you find a place you like, great. Now run the numbers on CF and ROI as if it were strictly a rental, ie look at what you would get for rents if you didn't live there.

Your stay there is temporary as you said, so make sure the deal is going to make sense when you leave and it is a buy and hold.  

Your first deal is an important one, establish your investor criteria and be firm, this is not your forever home so listen to the investor angel on your shoulder that loves the numbers, not the other voice on the other shoulder that loves the kitchen and is willing to pay a premium.  

Remember, if and when you sell you will very likely be selling to an investor who will make offers based on numbers.  When that day comes you don't want the investor angel tapping his toe on your shoulder whispering "told ya so!"