All Forum Posts by: Maddie K.

Hey Joe,

During all my reading/research, I have gotten much more comfortable with the idea of BRRRR, and have realized it's a great method. I'm super interested in learning more about housing renovation, but I do worry that I lack experience. I'm quite handy and build bikes, computers, and in general love building stuff--but the cost of materials and the "air of seriousness" around housing projects can make me a bit nervous. Also, since I've always rented, or lived with family, I haven't had my own place I can try anything out on. So, I guess one reason I am not looking too much into things that need lots of cosmetic work (or other types), is my lack of experience. I know that taking a while to learn can cost me much more than materials, but also mortgage and vacancies.

Also, I'm curious about how folks get into rehabbing. As someone just starting and who mostly connected with agents and lenders more geared towards turn-key and nice deals, I wonder how people get into rehabbing. If you have time to talk, I can send you a PM :) 

Hi everyone! 

It's great to read everyone's responses. I think I mostly needed to run my ideas by someone other than my partner. More than anything, this has helped me understand that I don't have to have everything figured out for the next deal. And all your input is a good signal I'm on the right track for my first property. Thanks again!!

Hi everyone!

Hope you're all well and staying safe. 

I am an "aspiring investor," as many people are. I've ingested a ton of information on YouTube, BP, books, talking to folks, and I'm fairly deep into the process of purchasing my first property (I've already made 1 offer). I've been working with an amazing agent, after interviewing a few, and am looking for my first house hack (most likely a 3 fam North of Boston in like Everett, Revere, Malden, Chelsea). I qualify for a MassHousing conventional loan and am looking to take advantage of those nice first-time homebuyer, owner occupied rates, actually nice PMI, and other perks of MassHousing.

For background, I'm a new grad with a really nice job as a software engineer here in Boston. I'm originally from St. Louis, specifically the Tower Grove South neighborhood. I have been happily surprised to see that it's gotten a fair amount of attention on BP and I've been interested in investing in St. Louis myself. Does this semi-plan sound sensible at all? I haven't wanted to flesh it out, because I feel like it might be unreasonable (although I know, if I really want to do it, I can make it happen):  I purchase a small multi in Boston that I house hack for a few years. Whenever I next can, I purchase a property in St. Louis? And then look into expanding my St. Louis holdings, or other long-distance holdings (if I'm still living in the Boston area)?

I want to househack in the Boston area because:

•  Using a first time homebuyer, owner occupied loan would be great, and allow me to buy a property in Boston (which is just very expensive in general) 
•  I already pay a stupid amount in rent (not a lot for the area, but I think I can find a deal that will allow me to live for free, or close to it). 
•  I could build equity in this area that appreciates rather quickly.
•  I plan on being in the Boston area, at least for a few more years, possibly more
•  I would like to provide a nice living space for the couple of tenants I'd have 

I want to buy properties in St. Louis because:

•  I am from there, want to invest in my hometown--i love the area and want to invest in the neighborhood, provide good housing, and be able to have that relationship with my hometown, even if i'm not living there. 
•  I know the streets there extremely well, know people on the ground, and feel like I can hold my own in long-distance investing in my actual hometown. 
•  It's much cheaper than Boston (for example, the properties I'm looking at in Boston are around 800K, while some overpriced multis in St. Louis might be 250K). I could theoretically buy more properties faster (I'd of course not take on more than I can handle), with just my income (I save a lot of my salary and live frugally). 

I'm a bit worried that:

• If I buy a househack out here in Boston, my DTI (debt-to-income ratio) would be too high for me to qualify for new loans to acquire other properties. But maybe that's not a valid concern, since you can incorporate rental income? I think this is my biggest concern.
• I may spread myself thin, having a property in Boston, and other properties in St. Louis? But I know long-distance REI is definitely possible.
•  The properties in Boston are so expensive, I don't know if I'd be able to buy more very quickly.

Thank you for any help or feedback on this "fork in the road"!