Starting out in Cambridge

[Harrison Young]

Hello Everyone,

I am a Ph.D. student in Cambridge and I am preparing to start investing in Real Estate in a few years. Given my anticipated situation I think house hacking and renting multi family properties would be the best fit. My purpose for investing in real estate is to generate a source of passive income and to act as a hedge as I pursue a career in academia. My goal is to produce $3,500/month in passive income in 25 years.

The current plan is a follows

• Years: 2020-2027, Occupation: Graduate student, Location: Cambridge
• Goal: Prepare to purchase and renovate a small (~$100,000) duplex in 2027.
• Steps:
  • Do lots of general research and networking
  • Save $38,000 to invest in the property
    • $20,000 for the down payment
    • $10,000 for renovations
    • $8,000 for expenses during vacancy.
• 
  Years: 2027-2030, Occupation: Post Doc, Location: TBD
• Goal: House hack property. Get property to cash flow or at least set it so that it will cash flow when both units are rented.
• Good Outcome: Property cash flows, hire property manager
• Bad Outcome: Property does not and will not cash flow, Sell

• Years: 2030-2035, Occupation: Untenured Professor, Location: TBD
• Goal: House hack second duplex, purchase third rental property.
• Good Outcome: Both properties cash flow, continue to grow portfolio as time and funding allow.
• Fair Outcome: One property cash flows, move into non-cash flowing property.
• Poor Outcome: None of my properties so far have cash flowed, reevaluate my buy-and-hold strategy.

• Year: 2035-, Occupation: Tenured Professor, Location TBD
• Goal: Steadily grow my portfolio as time and financing allow.

I have a few specific questions about this plan.

The first 15 years are slow because I am assuming, as a researcher vying for a faculty position, I will have no time and no money. However, I do not know if this assumption is accurate. If anyone started their investing journey while climbing the academia ladder I would love to hear about your experience and how you balanced research and investing.

Would I be better off just saving my money until I earn a tenured position?I would definitely have a higher salary and supposedly have more time but 15 years is a long time to wait before I start making mistakes.

Is it viable to hire a property manager for a single (<$100,000 duplex?) If not what would my options be for the property after my post doc. Does a rental property even make sense if I plan to sell it after only two years?

Any thoughts you have would be greatly appreciated,

Best,