Is Massachusetts a good state to buy rentals?

Question

Hello, I am currently serving in the united states marines and am trying to map out how exactly I am going to start investing my money into real estate whenever I am out. I am mainly looking to house hack in a triplex starting out using my VA loan and will be working in Mass while saving up to make a downpayment on a second rental property.

What I am wondering is after this first property is it wise to keep investing in massachusetts or should I try to invest in other states where the market is alot cheaper and may have alot better deals?Or is this too hard to manage?

Thank you.

Daniel McDonald · Answer

@Devin Nellany I have been house hacking the past 5 years in MA, in Beverly. Yes, it's expensive, yes, it's not a landlord friendly state, but yes, it's a great place to invest ESPECIALLY when it comes to house hacking. I'll say cash flow is hard here. I'm not going to be retiring any time soon with two duplexes. But I will say the appreciation is insane. And when you do the math, it's way more than I've ever heard of anyone cash flowing a month. I also manage 11 listings out of state with my PM company. It's hard. And I see how expensive it is from the owner's perspective. So I am still going to say if you're living here any way, why not take advantage of house hacking? I have yet to meet a seasoned investor in MASS who regrets it.

Jimmy Lieu · Answer

Hey first off, thank you for your service and props to you for thinking ahead and setting yourself up early. House hacking a triplex with your VA loan is a really smart way to get started since it lets you live for cheap or even free while building equity. Whether to keep investing locally or out of state really comes down to the numbers and how involved you want to be in management. A lot of people choose to keep the first few deals close to home to learn the ropes, but once markets like Massachusetts start pricing you out, it can make a lot of sense to look at more affordable cash-flow markets. For example, I moved from Portland, Oregon to Columbus, Ohio in 2020 to build my rental portfolio and now own 10+ rentals here. Columbus has been a strong out-of-state market for a lot of investors because it’s landlord-friendly, still affordable (think $120–180K price points hitting the 1% rule), and has strong job and population growth with big companies moving in like Intel, Amazon, Google, Honda, and more. Long-distance investing is very doable with the right systems and team in place, so don’t be afraid to explore outside your backyard if the numbers make more sense. Happy to connect and answer any questions you have!

Devin Nellany · Answer

Thank you for your input Daniel! If possible are there any lenders or realtors you know that you could get me in contact with? If not thats fine just trying to talk to more people to learn more about real estate what a good lender/agent looks like and what bad ones look like.

Much appreciated,

Devin Nellany

Much appreciated,

Devin Nellany

Daniel McDonald · Answer

Sure, shot you a DM

Chris Seveney · Answer

Coming from Massachusetts I am bias but I would say Mass is a great state to own real estate (if its in a good area) as it hsa some of the best schools in the country and has great home appreciation. Taxwise its called taxachusetts for a reason but a great place to build wealth in real estate.

Devin Nellany · Answer

@Chris Seveney Much appriciated thank you very much I have mostly been looking into properties in Worcester.

Is Massachusetts a good state to buy rentals?

Is Massachusetts a good state to buy rentals?

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