All Forum Posts by: Denis Vaughan

Hi Rachael, they will all cash flow if you put enough down! 

However, I put 10% down on my three family in Somerville last year and did some value add and this year its breaking even. I love the area but as others have mentioned its really hard to get cash flow unless you are putting 25-30% down which is a large undertaking in Boston. You can get better cash flow if you move out further but its a trade off.

I was happy with my initial investment. Pretty much played out as I expected it to and I would do it again. However as I am looking for my next property, if I buy to live in, I know I will take a hit and be negative cash flow for a few years but if I buy an investment property I would go a little outside the city/in commuter towns most likely. 

Newton is tough!

Agree Sean, I'm in the early stages/data gathering but I do have a business interest in the area now so I'll be there more over the next few months. I expect by Summer I'll be ready to invest if it makes sense!

Hi all,

I find myself in Albany next week for work and will likely be going more often going forward. It has been an area I am interested in investing for a while also-Albany Saratoga Springs, Troy etc. 
Not too familiar with market dynamics in that area but would love to learn more. Looking to connect with a top notch agent who also invests themselves. 

Recommendations welcome-thanks in advance! 

@Daniel McDonald 100% correct. Expensive market. It may be a house hack every 2-3 years instead of every year but thats ok. It will snowball eventually. Build a solid foundation!

Quote from @Jason Wray:

Martin,

A few good places to buy would be Brookline, Newton, Bay Village you can still get in on a good price and know the rents are high for cash flow.  You are going to have a better deal on a "TLC" property versus turn key in terms of sale price.  I would look for something that needs some renovations but avoid anything that is "Subject to" and not pass an appraisal.

Great time to make an offer since it' end of year and sellers are wanting to unload to avoid another year costs and DOM.  

These are primo areas and would be tough (not impossible) to cash flow with a decent chunk of change down and some renos as suggested. STR is always an option but of course its a hassle. I'd be thinking more along the lines of Roxbury, Watertown, East Boston or over my way, Somerville! Good luck!

Thanks all! Hoping to either repeat in 12-18 months or else stay where I am and look out of state. Hard to get a duplex for under 1M in Boston but I imagine I could get one for $500-600 out of state-basically the same downpayment (10% in a house hack vs 20% in an out of state investment property). Struggling with that decision now-Boston is safe, solid if unspectacular! @Benjamin Sulka-a lot of people talking up Columbus right right now!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $1,500,000
Cash invested: $200,000

3 family house hack. 10% down, spent 50k in light renovations

Welcome Rachel! I'm a new investor in MA (Somerville) and happy to give you my two cents. Personally I like the low risk approach to a local house hack, cutting your teeth, so to speak before looking out of state. Not to say that it can't be done, of course. Happy to discuss my experience if helpful!

Quote from @Luke Walsh:

Quote from @Denis Vaughan:

@Jessica Lohr, I'm doing this right now in Somerville. As others have mentioned its all a trade off. Where would you be happy living/where is acceptable to live vs where will make the most financial sense.

I really wanted Cambridge but just couldn't make the numbers work and bought a 3 family in Somerville as a compromise. 10% down, and would essentially break even if all 3 were rented so I'm paying what I would pay in rent effectively. But getting the debt paydown, tax benefits etc so I'm ok with it. Other neighborhoods I considered included Watertown, Dorchester, East Boston. Would likely do better on numbers but still hard to cash flow in current conditions

For cash-flow you'd have to look at cheaper neighborhoods like others have mentioned-Chelsea, Everett, Lynn, Revere-I personally didn't want to live there but am planning on investing there if all goes to plan! 

@Denis Vaughan how did you make the financing work with 10% down? Was it an FHA loan? I thought triplex requires 20%.

No it was a conventional, ended up shopping around and a few banks would do it for me. Seems to be on an individual basis. FHA seems great but in competitive markets in Boston I heard it’s harder to get it accepted 

@Jessica Lohr, I'm doing this right now in Somerville. As others have mentioned its all a trade off. Where would you be happy living/where is acceptable to live vs where will make the most financial sense.

I really wanted Cambridge but just couldn't make the numbers work and bought a 3 family in Somerville as a compromise. 10% down, and would essentially break even if all 3 were rented so I'm paying what I would pay in rent effectively. But getting the debt paydown, tax benefits etc so I'm ok with it. Other neighborhoods I considered included Watertown, Dorchester, East Boston. Would likely do better on numbers but still hard to cash flow in current conditions

For cash-flow you'd have to look at cheaper neighborhoods like others have mentioned-Chelsea, Everett, Lynn, Revere-I personally didn't want to live there but am planning on investing there if all goes to plan!