Multi family investment property vs. Condo in “big cities”?

Question

Hello to whomever sees this post!

I’m gearing up to purchase my first investment property but I live in Boston, MA. And if anyone knows this market, it’s PRICEY! I’d love to get the “most” out of my first investment property purchase but have been contemplating on where to begin.

Condo conversions have been ongoing and a huge deal here and Boston, buying a multi family property would cost far more than buying a condo. I’ve also been thinking about potentially moving out of state (possibly Philadelphia) but I’d love to get some insight on other peoples opinion. Has anyone ever come across this ￼kind of dilemma? Purchase a multi family in a expensive area or condo then rented it out or the rooms? Please share your thoughts, feedback, anything that’ll help! Thank you in advanced.

Jonathan Bombaci · Answer

Hi @Maryan Abo we help many investors in greater Boston. There are plenty that buy multis and plenty that do condos, it all depends on your preference and your goal.

Typically multi-families are more expensive and require more time to manage but the cashflow is better and you have complete control over the property. Condos are typically cheaper and easier to manage but the cashflow is lower and you don't have as much control. The HOA can make decisions about the property which can impact your in Investment significant positively or negatively.

I own a few condos and lots of multis. We’re in the process of selling off the condos to raise capital for the next project, and honestly dealing with all the separate HOA’s was kind of a pain.

I hope this helps let me know if you have any questions or if your interested in networking with local investors doing these types of strategies. We host a few meetups in MA under the name Pints and Properties and you can find more info in the Events tab here on BP.

Best,

Jon

Multi family investment property vs. Condo in “big cities”?

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