All Forum Posts by: Mohammad Fanaei

Hello @Nick Riccio! Thank you very much for your comment and recommendations. I really liked what you had done with the two properties that you had listed on your profile. They provide great ideas for someone like me that is starting anew. I will definitely reach out to you within a month or so to discuss financing (and potentially FHA options). I will get in touch with @Lien Vuong to discuss options with her. Thanks again for your comment.

Hello @Jarrod Kohl! Thank you very much for your comment and for pointing out STRs as an option. That is what I have thought about. I do to mind it being more hands-on as my job would allow me some flexibility. As @Grace Olinger has mentioned in a different comment, there might be some restrictions on the type of STRs if I get an FHA loan. But she has also suggested a couple of solutions that would work great. Thanks again for your comment!

Hello @Jeremy Nault! Thank you very much for your encouraging words. I would probably reach out to you when I have secured a property with more specific questions about the mechanics of the implementation and procedures of having tenants. There is a lot to be learned. I just have a quick question. Did you use an FHA loan to buy your first property (3% downpayment, no PMI, and first-time home buying grant)? Best of luck to you and keep in touch!

Hello @Alex Dumas! Thank you very much for your message. The 2-bathroom idea was based on what I had seen in Philly, which is a fairly typical feature of a lot of houses. I will keep that in mind that it is not typical in the Boston market. I have not yet decided on any specific region within Boston. As @Jonathan R McLaughlin had suggested, some neighborhoods to start with are Allston and Rosindale (probably unlikely), Chelsea, Everett, Milton, Dorchester, and possibly Hyde Park. Do you have any suggestions? Are there areas that I should avoid or places that I need to focus on? Thanks again for your help!

Hello @Jonathan R McLaughlin! Thank you so very much for giving me a list of some places to start looking into. That is exactly what I was looking for. I really appreciate your insight. Upon a quick look, it seems that I might be able to find some options within my price range in Allston and Roslindale. I will spend more time looking into more options that you had listed. I can't thank you enough for compiling this great list to start with.

In regards to your Point (3), unfortunately, I will not be able to pay more than about 150K as a downpayment, which would be okay for a conventional loan with a 20% downpayment up to a purchase price of 750K, which might not cover what I am looking for. I was hoping that I can use an FHA loan for the low downpayment option that it provides. I would have to look into finances further and see what other options might be available if the FHA route does not work. For example, I would have to see what resources, if any, Northeastern provides (as you had mentioned). Do you happen to know of any potential options?

As for your "good" points, I do not need to cash flow. As long as I can build equity, I would be golden. The rents are for sue much higher than in Philadelphia, and Philly was much more expensive when I moved here from Detroit :-D I have started to look into the areas that you had listed and will continue looking into them.

Again, THANK YOU so very much for such a great comment with actionable, specific recommendations.

Hello @Tom Wagner! Thank you very much for your message and the great points that you had raised.

You are completely right. I am actually not limited to the number of bedrooms. Since I have always rented a 2-bedroom apartment for myself and rented out one room to a roommate, that was my default choice. However, the number of bedrooms should not be a determining factor. As for preferring duplexes over more units, I thought that for the first step, it might be prudent to start small. Looking at prices, I would also like to be able to secure an FHA loan (which I know has a limit) for the price of the property that I will buy. However, if I find a 3- or 4-unit that is within my budget, then I can definitely consider those. I also think that it becomes more competitive as the number of units increases because bigger investors with more resources are more interested in those kinds of properties.

If I can find something by September, that would be ideal. However, I do not want to rush through the process. I am very flexible with timing. I can rent something for six months or so as I move to Boston and look for more favorable options. I know that the market cools down a bit (or at least it used to in the normal market conditions) as we move to fall and winter. However, with the anticipated increase in the interest rates, I am not sure how much the benefit of waiting outweighs the negative effects of the increased interest rates. In short, timing is fairly flexible for me.

I have thought about your last point, which is extremely important, and I am on the side of appreciation as opposed to cash flow. I do not need the cash flow over the next few years as I have a stable, well-paying job and a high saving rate. Appreciation is much more important to me.

Again, thank you very much for raising such great points! Look forward to having many more such conversations!

@Jay Thomas Thank you very much for the points that you had raised. I have created a spreadsheet that considers repair and maintenance (~between 5% to 10%) and capital expenditure (~7.5%). I think I can also think about the appliances and have a separate item line for them. I am going to be more active on the forums reading other people's experiences. Thanks again!

@Joshua Janus Thanks for pointing out what I need to consider and prepare for. I believe that I will be qualified for a 3.5% down payment with a credit score of 760+, and the loan limit is high enough ($770,500 for single-family and $986,400 for duplex in the Boston area). Once I find a realtor to work with, I have planned to talk with a loan broker to go over more details.

@Lien Vuong Thanks very much for the information about the local market. Having 2 bathrooms is not a must if it is not the norm in the local market. I will be working at Northeastern University. I have not yet decided on where exactly I would like to be and am open to the location as long as it can be accessed by public transportation. Some of the areas that I have looked at are Allston-Brighton, East Boston, Fenway-Kenmore, and Roslindale. I would be grateful if you know of any area that is more appropriate for investing and is accessible to my workplace by public transportation. Thanks!

@Marisa JManker Thanks for pointing that out. I am actually in the process of buying a property in Philadelphia and had not considered Rocket. I will reach out to them. Your story and profile of the rehabbed places were impressive. A lot of lessons to be learned.

Thanks again, everyone!

Hello BP Familly:

I am a first-time poster and long-time lurker of the BP forums and have been reading and educating myself using the BP resources for the last year. I've been listening to as many episodes of the podcast as I can and am currently working through Brandon Turners's The Book on Real Estate Investing.

I currently live in Philadelphia and have recently accepted a new job in Boston with a start date of September 1. My plan is to start house hacking at the same time that I move to Boston and use this transition to jumpstart my investment in real estate. I have saved about $100K in cash and would like to buy a duplex with a 5% to 10% downpayment and an FHA loan for financing. The best option would be to buy a side-by-side duplex, each with 2BR and at least one with 2BA. My plan is to rent one of them, live in the other one, and use one of the rooms in the one in which I will be living as a short-term rental (i.e., Airbnb).

I am looking for an investor-friendly real estate agent in the Boston area who is willing to work with me in this process. I would also like to get to know other members of the community who might have used a similar approach either in the region or anywhere else to learn from their experiences and connect with them as like-minded investors.

I appreciate the great community on the BP forums and look forward to getting to know your stories, learning from your experiences, and connecting with you more. Thanks for keeping the community strong!

I will be a new landlord in Philadelphia soon. Can I ask what problems could be foreseen if one uses their residential home address on the rental license? Thank you!