All Forum Posts by: Harrison Young

@Nick Peters Thank you for your feedback. I agree, the general consensus is this far out plans are fun but not effective. I will focus on learning, saving, and connecting. 

Thanks for John your reply. My post was a little unclear, I do not intend to buy a property until I move out of Cambridge in 6 or so years. I do not know what market I will end up moving into but hopefully it will be less expensive. Otherwise I will have to push things back. 

In 2027 I will be moving to a new market (could be anywhere in the USA) for around 2 years and move again (also could be anywhere) before I establish a permanent residence.

I understand that I have a lot to learn between now and then but in your opinion would it make more sense to start renting-and-holding once I stop moving around?

Thank you Jaron for your reply. By the time I am ready to buy anything I will have moved out of Massachusetts to (hopefully) a less expensive market. It makes sense that there is are diminishing returns to planning so far ahead with so many unknowns and at this stage acquiring general knowledge is more valuable. 

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,