I moved from Houston to Boston in February and I have been looking at buying a multifamily in Boston since April.. I am finding it very hard to get down a good property because the numbers are not working well enough. Anyone had thoughts on buying multifamily properties in Boston..? any tips will be appreciated.
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
8y
@Joe A. You're right about the Cape being seasonal, but there are deals there.
Seasonal rentals are, of course, HUGE.
Landlords look for winter renters from roughly October 1 to May 1. A winter rental might run $1800/month where that same property might run $1800/week in the peak season (mid-summer) and about $1600/week in the "shoulder" seasons (late spring and early fall).
There are parts of the Cape where there are a lot of year-round residents too. Think Barnstable and the surrounding areas and the towns closest to the bridges where you'll find a few Boston commuters (may God have mercy on their souls).
Investor · Fall River, MA · Member since 2014 · 399 posts · 300 votes
7y
@Oye Dosumu if you are interested in the Medford / Everett Market I know @Lien Vuong is the authority on cashflowing and investing in that area. She might be a very valuable resource as an agent and fellow investor with connections.
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
7y
@Oye Dosumu Honestly, if you know another market well say in Texas or the Southeast, I would recommend building a team there instead and use 3rd party mgmt. Boston like NY just doesn't offer great yield.
@Scott Morongell. I do intend to base my investments in Texas eventually, but I have to start in Boston because I stay here, and rents are too high. Everything is cheaper in Texas, and I feel like there is better ROI there.
@Oye Dosumu The numbers in Boston are pretty amazing. 3-plexes under $1M are mostly found in Mattapan, Dorchester and Roxbury (higher crime areas) with a few in East Boston. In fact, the average list price of 3-plexes on the market in Boston is $1.33M. In Cambridge, the average is
I always recommend looking to the south, specifically Plymouth, Norfolk and Bristol counties - which is loosely defined as south of Boston, as far west as I-95, south all the way to, but not including the Cape.
The average list price for 3-plexes in Norfolk County (excluding Brookline) is $825K. Bristol Country average is $287K, but those include Fall River and New Bedford where prices are much lower with rents to match.
Plymouth County is $485K, so numbers tend to work a lot better here.
Hi Charlie -- appreciated the detailed note! Would you still recommend the same areas today? What sort of cap rates are you seeing on tri's and fourplexes in Boston area these days?