I'm new here, so this question may be naive or probably very vague: I'm interested in single-family or multi-family investment opportunities in northeastern MA (Methuen, Billerica, Chelmsford, Dracut, Lowell) and southern NH (Salem or Nashua). I'm interested to hear feedback from people who may have experience investing in these regions: for a beginning buy&hold investor, should single-family of multi-family properties be targeted?
thank you for any feedback
Hi Dave - welcome! I don't follow MA much but I've followed the SNH market weekly for over a decade and here are my thoughts:
For appreciation SF all the way and at any price point, ie starter homes or middle/higher end. For CF and ROI and COC return I would have said starter size SF all the way as well until just the last couple of months.
Multi family prices have been inflated big time. A duplex or triplex just made zero sense to me at the prices they were going for but my personal observation is that mutli's plateaued and SFs have continued to climb so mutli's make sense now in comparison.
I think 4 families are the greatest value play in the world right now. They are rare but 4 families must be in the sweet spot where there just isn't a lot of competition because your getting 4 doors for about the price of 3 compared to duplexes.
Seeing these 4 families is driving me nuts bc I'm not in a position where I can capitalize right now.
While I don't disagree with the general thrust of what Brett is saying, purpose-built quads are very rare in NH, and I don't see a lot of them available.
I do singles in stable small towns with good school districts. Decent cash flow, decent appreciation, and very little downside (can always sell to an O/O if necessary.) I'm not hitting homeruns, but I will take a succession of solid doubles all day long.
I think your playbook is a great way to go for the reasons you listed Richard and also bc I bet the quality of tenant as compared to a multi fam tenant is huge. A handful of multis is less geographically dispersed and in theory that's easier to manage though.
I can't decide which playbook in going with in the long run just yet.
I should admit that one of the reasons I take the approach I do is that my wife's grand plan for keeping our children (and eventual grandchildren) close by is to give them each a house. That is about 50% of my motive for being involved in real estate at all.
Hi Richard and Brett,
thank you for your replies, this is very helpful information. I started out thinking of going into SF because SF is what I would like to rent if I were searching for a place to rent for myself and/or my family. Also, a couple of good books I've recently read (Weekend Millionaire and HOLD) both suggest sticking to SF if your investing model is buy&hold.
However, I'm getting pushback from a MF investor friend of mine and also from a property manager I've recently contacted. I see the cash flow argument for MF but I like the claim that SF are easier to sell if you need to sell for some reason (or if you're ready to cash your SF portfolio in).
Thank you again and best regards
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