House Hacking South of Boston

[Joseph Algeri]

Hey BP community!!

My name is Joe (age=26) and I'm a new REI, looking to purchase a 2-3 unit MF south of boston (potential house hack). I currently own a 3BR/2 bath single family in Middleboro mass (around where I work) but I'm looking to get a little closer to the city. I currently have around 120K in equity in the home (MV =320K / balance due 200k) if I was to sell the property around Market value. I'm looking for some help on how I can purchase my second property and what areas I should be looking in.

I am currently looking in the Quincy/Braintree/weymouth area but the prices of the homes in the market are above 550K easily for even a 2 unit MF. I have also considered looking into the Randolph/brockton/stoughton areas since the value of the homes are much more affordable but I have also heard the tenants in that area can be difficulty to work with and find. In your opinion is it worth spending more/lower ROI in the Quincy are to secure more dependent tenants and invest in an area where more appreciation may occur VS spending less/ greater ROI (cash flows are better) in an area such as brockton/stoughton?

In terms of funding the purchase it would be great if I could take a home equity line of credit against my house and purchase the second property upright. I however don't believe I will qualify for a loan since the I will have two large mortgages and will not meet the required debt to income ratios (They will not count the income on the rental property because I have not been a qualified landlord for more than two years). It will also be close for me to hit the 20% down payment required to close for a second investment property. Selling may be my only option but at least it will allow me to put 5% down since it will become my new primary residence.

Any opinions on the  location to purchase a MF property or alternative financing options would be very helpful. I appreciate you taking the time to help out a new Real estate investor.

Thanks for all the help

-Joe