Investing/House-Hacking in expensive areas

Investing/House-Hacking in expensive areas

New to Real Estate · Taunton, MA · Member since 2021 · 7 posts · 7 votes

I have leisurely studied real estate for a few years without ever getting too deep since I was full-time in school. I recently found BP and learned there are more than 1-2 ways to get into real estate. I have been really focusing on wholesaling and multi-families but I think the best way to get some experience is to house-hack. I am very fond of the idea of having others pay the mortgage or just a small payment myself while learning the responsibilities of being a landlord. 

Since finishing school I do have loans, so my main goal for now is to create enough cash flow one day to completely cover the payments each month. I currently live just south of Boston, MA at home trying to save as much as I can which isn't easy with loans. I have realized a lot of 2-4 units around me are 1. Really expensive 2. Very old. I am not picky in any means on where I live, but I just want to find something that is livable and not crazy expensive. I know the FHA loan is the way to go but I just wanted to also get any advice, tips or tricks on investing and house-hacking in areas like this.

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Lender · Boston, MA · Member since 2018 · 171 posts · 137 votes
5y

@Jake Freeman your off to a great start and this is an awesome place to learn!

I’ve been house hacking in Boston for the last ~3 years and while not easy, it’s certainly worth it.

I think the key is to find value add opportunities. Creating additional bedrooms is key to making the numbers work as most deals on the MLS are not great as-is. If you can add bedrooms to a unit that will increase rent significantly!

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  • Lender · Boston, MA · Member since 2018 · 171 posts · 137 votes
    5y

    @Jake Freeman your off to a great start and this is an awesome place to learn!

    I’ve been house hacking in Boston for the last ~3 years and while not easy, it’s certainly worth it.

    I think the key is to find value add opportunities. Creating additional bedrooms is key to making the numbers work as most deals on the MLS are not great as-is. If you can add bedrooms to a unit that will increase rent significantly!

  • Realtor · Raleigh-Durham, NC · Member since 2018 · 324 posts · 218 votes
    5y

    @Jake Freeman You have to keep looking and not get discouraged. Network as much as you can. I was feeling pretty discouraged and then got a call about an opportunity for my first househack. The agent, who I met from networking, called me before putting the listing back on market and I offered right away.

    As @Nick Riccio if you can add bedrooms that will also add a lot of value and make the numbers more enticing. One thing I also did was maximize my income. I had a roommate and my girlfriend living with me in my 2 bedroom which made the numbers significantly better!

  • Member since 2021 · 7 posts · 3 votes
    5y

    If you don’t mind roommates, renting out rooms can be very lucrative in an expensive market, but it sounds like you might be well past this stage.

  • New to Real Estate · Taunton, MA · Member since 2021 · 7 posts · 7 votes
    5y

    Thanks for the insights everyone, looking forward to taking that first step and hopefully being my house-hacking journey ASAP

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