Where to Invest ?

Question

Hi All

I hope everyone is having a relaxing Sunday. I am new to real estate and looking for my first investment. I am comfortable for a property upto 200K with 20% down. Given this is my first investment, I want to try local before I go out of state. Does MA has a neighborhood with good rental cash flow for 200K ? Also I am thinking I can expand to Rhode Island, New Hampshire and Connecticut which are close to MA. Looking for some suggestions on good neighborhood in these states with good cash flow. Thank you

Jorden P Dupont · Answer

Hey Sathya! Hope your Sunday is relaxing as well!

I'm an agent in Windsor Locks, CT which is about 10 minutes from Mass. Since MA has a pretty high price point I would suggest house hacking. This is a great way to start out for a million reasons. This is what I'm currently doing and its a nice way to ease into being a landlord. Even if your tenant isn't covering your entire mortgage or rent...that's still money youre not spending on bills right?

Depending on your situation and comfort level can dictate what kind of house hacking you want to do. You can rent out your rooms. This isn't ideal if you have kids and a family. You can have your own separate space with a side by side or up/down duplex.

You can also often get some pretty cool loans by being an owner occupant as well!

IF house hacking isn't the move, i would suggest staying local as well. Look around in your neighborhood since you know it the best. You should have a pretty decent idea of what homes are worth/what places are renting for and you can make an educated decision from there. I'm making some assumptions here but you could move out and rent out your current place. There's a million things you can do and it can quickly get overwhelming. The biggest thing is just do something. Take action and the rest will fall into place Hope this helps!

Johnna Brown · Answer

Hi Sathya! That is exciting you are ready for your first investment! I am agent investor in NH and Maine and I know of several properties that would fit your criteria. Are you looking for a short term or long term rental? I have both and could give you advice on the pros and cons or each.

Johnna Brown

603-930-9927

Johnna Brown

603-930-9927

Joe Rodriguez · Answer

@Sathya Priya Sampathkumar Just sent you a request to connect with my contact info. Talk soon!

Sathya Priya Sampathkumar · Answer

Hi Joe

thank you. I would like to talk more. Let me know  if I can connect with you

Joe Rodriguez · Answer

@Sathya Priya Sampathkumar I personally live in the Boston area and invest in RI. I have (4) properties out there simply because of the price point compared to MA. I love the federal hill area in Providence, though it tends to be on the expensive side, but also reflects in the quality of tenant and rent that you can get. You mentioned $200k, if that is the purchase price, I don't think there is anything remotely close if I'm being honest. You're probably looking in the $400- $500k range. More than happy to assist further if you have any other questions!

Colleen F. · Answer

@Sathya Priya Sampathkumar   In RI probably your price I would look at providence and surrounding areas but you might be better off going to Worcester or western MA if you want to stay in MA. I suggest you do the research on the places that have inventory at your price point and go from there.  At that price you might be talking condo in the eastern part of MA which often doesn't result in good cash flow. I bought one in Acton, MA and have seen some under that 200k price but with the condo fees and limitations it doesn't do as well as houses. Also some towns are tax heavy so pay attention to the taxes.

Wale Lawal · Answer

@Sathya Priya Sampathkumar

Massachusetts offers various neighborhoods and states suitable for budget and cash flow goals. Worcester, Massachusetts' second-largest city, is popular due to lower entry prices and strong rental demand. Other attractive areas include Pittsfield, Providence, Manchester, Nashua, Rochester, and Connecticut. Key tips for finding the right property include focusing on cash flow, researching local market trends, and networking with investors.

Good luck!

Jorden P Dupont · Answer

Hey Sathya, Unfortunately i don't know too much about the RI market so i couldn't really give you a good answer on that one. I do know that New Haven CT is a very strong cash flow market currently and has been for a while. Not sure if you've used this feature on BiggerPockets yet but on the top of the screen theres a tab for "Pick Markets"

Picking a market worksheet, Top 100 cash flow markets and Market insights are all free to use. Make sure to give those a look. I found the Top 100 cash flow markets by Dave Meyer super interesting. Hope this helps! goodluck with your search and keep us posted!

Sathya Priya Sampathkumar · Answer

Hi Jordan

Thanks for your reply. I have a family and kids so house hacking probably will not work. I am considering Rhode Island, do you have any recommendations for neighborhoods with good rental cash flow ?

Sathya Priya Sampathkumar · Answer

Hi @Colleen F.

Thank you so much. Do you have any recommendations for neighborhoods in RhodeIsland ?

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