Help me understand Dorchester, MA rental Market
I am looking for Multifamily all over Greater Boston for rentals, will probably also do section 8 to maximize rental income. I noticed Dorchester's price per bedroom is the best in the greater Boston area, with plenty of multifamilies on the market. The other interesting thing is that it has an abnormal concentration of available rentals, both regular AND for section 8.
Can someone familiar with Dorchester help me understand the rental market there? If I plan to do section 8 to get above market rental income, any reason to not buy there for the best cash flow? FYI I am a seasoned section 8 landlord, just not familiar with Dorchester. I am most familiar with Chelsea/revere/Everette area.
thanks!
No magic to it. High amount of rentals.
I do think quality of apartment is mattering more- demand is down right now for larger units (3/4 beds) - but it also is very seasonal. College students were going crazy sept 1 and Jan 1 looking for housing which ripples over to demand for everyone at those key moments (im sure its the same in Chelsea and Everett).
Dorchester is also a very large area - and neighborhoods have their own flavor. Some are spicier and that may make leasing and managing harder.
I don't see anything too out of the box with Dorchester units v other Boston sub markets. The thing you'll have to know more intimately are the street and small nuances in the areas for renters but apart from that, you'll be able to use your sound real estate judgement in evaluating opportunities.
@Lin Yin I'm in the process of renting my condo out in Dorchester (Savin Hill) and would highly recommend comparing apples to apples in terms of neighborhoods within this part of Boston. Like Lien said, it's super street dependent. There are still areas with high crime and they might even be one street over from very expensive neighborhoods, so I highly recommend driving the areas you're interested in to ensure that it meets your buy box in that respect.
General rules of thumb that I've found:
-Areas that are closer to red line or highways tend to improve faster (I'd imagine this is true in most places). Ashmont is a great example of this based on the changes in the past 10 years or so.
-Main streets (like Dorchester Ave for example) are slower to improve, but the side streets might have gems. Always drive the area!
Quote from @Kyle Spearin:
@Lin Yin I'm in the process of renting my condo out in Dorchester (Savin Hill) and would highly recommend comparing apples to apples in terms of neighborhoods within this part of Boston. Like Lien said, it's super street dependent. There are still areas with high crime and they might even be one street over from very expensive neighborhoods, so I highly recommend driving the areas you're interested in to ensure that it meets your buy box in that respect.
General rules of thumb that I've found:
-Areas that are closer to red line or highways tend to improve faster (I'd imagine this is true in most places). Ashmont is a great example of this based on the changes in the past 10 years or so.
-Main streets (like Dorchester Ave for example) are slower to improve, but the side streets might have gems. Always drive the area!
I found this especially true for Savin Hill. Street to street matters. I lived there for 5 years, moved away about 18 months ago.