House Hacking in Boston

[Michael Martina]

Hello recent college graduate considering purchasing a Duplex in the Boston area. Quincy to be more specific (I work in Dorchester). Im currently renting a one bedroom apartment for $1400 and the way the cost of living is trending out here, owning makes more sense and house hacking intrigues me.

So several questions I have is: 

Is anyone house hacking successfully in the Boston area? How much of the mortgage do your tenants cover?

How much did you buy your property at? Current listings on Zillow place Duplexes at $600K in the Quincy area.

Whats the proper way to calculate the monthly mortgage? Different sites give different calculations for the same $600k loan. (Ideally hope to get an FHA loan with 3.5% down payment).

Thank you in advanced. Open to any advice anyone has

[DJ Richmond]

Hi @Michael Martina, last Summer I purchased a duplex in Quincy via FHA and took advantage of the 203k loan. Purchase price was in the low 500's with $53k in renovations. Next month I will refinance to conventional to eliminate the PMI, now that I have obtained near 20% equity (Currently valued in the mid 600's).

FHA is definitely a pricey loan in terms of closing costs and premiums. UFMIP (Upfront Mortgage Insurance Premium) is 1.75% of the loan, but can be amortized with the loan. However, all that being said, I gained a substantial amount of equity through key renovations. After all tenant contributions, I am left to pay $118.03 monthly (Gross rents - PITI).

The FHA is definitely one of the best options for the first time buyer looking to get into their first property between 1-4 units. If you would like anymore information, please shoot me a PM. I've got a great network of contractors and resources I'd be happy to share!