All Forum Posts by: Stormer Santana

Welcome John! I just recently purchased a Multifamily Duplex in Malden. My suggestion to get started and to ramp up your learning curve is to start picking up the phone and calling potential stakeholders as if you are ready to purchase in the near future. From the sounds of it, you will most likely need 2 years of a W2 job to qualify for an FHA or conventional loan. Even still, make the calls now so you know how to set goals and what those goals should be. Who should you call?

1) Lenders, without a preapproval letter, you won't get very far. So call a few lenders (even google, "top lenders Boston") explain your interest, your situation, don't be afraid to say "this is my first purchase so I am looking for guidance on how to get started". After a few calls you will know who you want to work with and who is willing to work with you. Also find out how much you can afford.

2) Realtors, ask for recs from friends or just google realtors in the area. A few phone calls with these folks and you will have a better sense of how the purchasing process works and what markets to look out for. Ask blatant questions like, "I want a duplex, I want to do cosmetic upgrades and light renovations to add value, where do you suggest I look?" This will give them a sense of your market and ask to be added to the MLS to start viewing houses in your realm.

3) Create an excel doc of your target market and write down all relevant items. Population, Pop Growth, avg income, rent to ownership ratio etc. This has become super useful for me when I got stuck or unsure about moving forward, I revert back to this doc to confirm why I am looking in a specific area. Once you find a few areas to begin looking, google: "Location (Malden for example) Redevelopment". You will come across a city website with all future development plans. This is a great way to find long term protective areas or up-and-comers.

Good luck and don't hesitate to reach out if you have any questions. I have also created a few key excel documents that allowed me to analyze +100 properties at once. Reach out if you would like a copy!

@Maddie K. - Congrats on getting started! I am starting as well and closing on my first multi-family house hack in early December, in Malden!

Over the past 3 months, I have analyzed about 70 properties in the Boston area with the goal of house hacking. From what I found, it's going to be hard to live for free in Boston given the cost of entry. That being said, significantly reducing your living expenses is very possible with a househack. I am going through a Masshousing program as well and PMI still really eats your cashflow.

I have created a great excel sheet for tracking and viewing all of your house hack leads. Its a one-stop shop for viewing your prospects, while factoring reserves PMI taxes and what your move out return would look like. Feel free to dm me if you're interested in it.

@Andrew Mowe I am closing in Nov. on my first house hack just outside of Boston in Malden. To many of the comments already stated, it will be tough to find a 'live free' house hack in Boston, at least based on the 60+ properties I looked at. 

While I am not living for free in this duplex house hack, I am reducing my current living expenses by 40%, while reaping the benefits of appreciation, depreciation, taxes etc., that's all while still having to pay PMI. Once 20% equity is secured, through either natural or forced appreciation, we will no longer pay PMI, and the property will cashflow $800-1000 should and when we move out.

When running numbers, make sure you run 4 different ways: 1) how much will it cost me to live in one unit with the others rented while paying PMI 2) how much will it cost me to live in one unit with the other rented without PMI 3) how much will the entire investment cost me with all units rented and paying PMI 4) how much will the entire investment cost me with all units rented and no PMI. If scenario 1/2 decrease your current living expenses (rent), it could be a good deal! Most importantly, you want the numbers to work when you move out and all units are rented, living for a discount or free is the icing on the cake!

I created a few excel docs that allowed me to quickly analyze 60+ properties at a glance. Feel free to DM me if interested. 

The actual formula used: ( (Total Profit if Sold + Total Cash Needed) / Total Cash Needed ) ^ (1/Number of Years) – 1

The actual formula used: ( (Total Profit if Sold + Total Cash Needed) / Total Cash Needed ) ^ (1/Number of Years) – 1