Why You Should House-Hack In Boston

[Austin Negron]

The average salary for a software engineer in Boston is $117,000.

Let's say $86,000 after taxes.



And let's say you're currently paying $2,000/mo in rent - $24,000 down the drain/year.

SWE's are positioned very well to get pre-approved - job security, good income, and assuming good credit.

You can use an FHA loan which is 3.5% down.

This is one aspect of leverage in real estate because now you can afford, let's say, an $800,000 property with only putting down $28,000.

And say this is a 2-family property, where your tenant is paying you rent every month. This rent goes directly to paying off your mortgage.

Now, let's say the left over payment on the mortgage and all other expenses is $2,000/mo.

Now you are in the same situation as renting, expect now this monthly payment is contributing to the equity in this $800,000 property that you acquired for $28,0000, not to mention that your tenant is also helping you contribute to this equity as well. And you reap the benefits of appreciation on the backend (no pun intended) of the deal.

Another key advantage is that you are not locked into this location for the rest of your life...you only have to live here for one year, and then can rent out it out for the rest of your life.

Hope this helps!

And we haven't even talked about depreciation yet...