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All Forum Posts by: Spenser Hachey

Spenser Hachey has started 2 posts and replied 7 times.

Hey Wendell, I'll second the West Side of Worcester - although I dont own any real estate there, I've spoken to long time Worcester real estate agents and they say the West Side is considered "suburban" Worcester. I'm going to start looking at side - by - side units myself.

Originally posted by @Andrew Powers:

IF you are looking to cashflow immediately, have you looked into alternative ways of finding deals? Like through wholesalers or finding off market properties yourself? Might be an option if immediate cashflow is important to you. 

 I haven't looked into alternatives at the moment. I'm choosing House Hacking as my introduction to RE investing but appreciate your alternatives. Ultimately what's important to me id that when I move out of a duplex, both units would cover the mortgage and looks like that can be achieved.

Originally posted by @Phil K.:

Hi Spenser,

If you can lower your current rent by house hacking - you'd be saving yourself considerable expenses over time - all while owning a duplex. I think even though you aren't "cashflowing", you would still be saving because of the offset in your current rent (if you live towards Boston that is). 

If you can get yourself a 3 unit even better, or if you can find one a 4! The 4's are tough to come by but as an owner occupant the 3 other units would definitely enable you to potentially "cashflow".

The one thing I want to mention with the Worcester market - ensure that you have proper reserves. With most of the stock being older properties built ~1900 - if the property was not kept up with you'll run into a number of old things such as....knob and tube, lead paint, asbestos wrapped piping. All things over time you would potentially have to replace.

Good luck on your search and congrats on getting on the train!

 -Phil

Hey Phil, thanks for the assurance that just b/c I'm not cash flowing from day one, It's still a good decision b/c I'm slashing my current rent almost in half. However, I'll keep my eye out for 3 units.

Also great advice on having reserves - did you run into any issues with your properties? How do you suggest I handle this with the seller etc... 

Hi All,

After crunching the numbers using a mortgage calculator, I'm having difficulty finding a property where I can cash flow from day 1. Let me break it down for you:

Boston prices are sky-high so I plan on house hacking a duplex in Worcester MA. I'm looking at a $300k- 400k price range but after running thr numbers, my mortgage would be more than the rent. For example, If I purchased a home for $350k and put 10% down (35k) over 30 years, my mortgage would be $1769 after taxes/PMI. After speaking to a local realtor I was told that a 2br unit in nice condition could get me anywhere from $1200-$1400. In other words, I wouldn't cash flow but the tenant would be helping me and I'd be paying less than my current rent.

What are your thoughts on buying a property where you're not cash flowing from day one?  Is it simply a bad idea? Should I buy a triplex instead so I can cover the mortgage?

I've read Set for Life, saved a good chunk of change and am ready to purchase my House Hack! But Is a duplex only worth buying if I can cashflow?

Thanks everybody for reading and looking forward to your advice/input.

-Spenser

@Evan Polaski thanks for this information - so how is everybody able to get in real estate investing with such low down payments? 

Thanks guys for your feedback - @Jason Wray if I buy under a Conventional primary loan and get tenants in day 1, are there any legal ramifications for not personally occupying the unit?

Hi Guys,

I'm looking to buy an investment property as my first home and I do not plan on residing in it. My question is, do banks require you to put 20% down for investment properties? Seems like a lot.

Thank you!