Hi BP community! I am a new investor in the Lexington, MA area and trying to determine which areas to focus on for long term rentals. I’m open to SFHs and MFHs and would like to find something in the Greater Boston area. Any suggestions as to which areas I should focus on?
Hi @Carly M. Welcome to BP & investing! Areas should really be where you want to be, Id suggest close to home for starters for sure. I also would recommend going 3-4 units if possible, you will get the most for your return & be able to continue to invest, and potentially use this as your owner occupancy - so less money down. Feel free to DM me, id love to be able to help in anyway I can!
@Carly M. Nothing in Plymouth? especially since Pilgrim is closing down....
@Mike Hurney Haven’t ruled it out, but thought it might be wise to expand my search, especially since I’m located northeast of the city. However, you make a good point…
Are you owner occupying? Based on your location of Lexington, look at Arlington, Medford, Malden and Everett. Whats your budget?
@Sarah McCoy Appreciate the advice! Not owner occupying. Targeting the $200-500k range.
That budget will be tough in the towns that I mentioned. What about Lowell? If you want to private message me I’d be happy to help you.
@Carly M. The advice I've given so many applies here as well. Look in Plymouth, Norfolk and Bristol counties - essentially everything south of Boston, from RT 128 to the South Shore and South Coast.
Lets look at closed sales on 3-plex homes closed in the last 6 months. For what you'll pay for a triple decker in JP (average $1.5M), you can buy at least three in Plymouth (average $434,950) or Middleboro (average $449,000).
Compare that to Cambridge (average $1.84M) or Somerville (average $1.47M).
Prices here are a LOT more reasonable and the MBTA Commuter Rail gives us great access to Boston without the slings and arrows of RT 3 traffic. Plus for the same investment, you'll diversify your risk of a bad tenant across 3 times the doors.
@Charlie MacPherson Point well taken, appreciate the advice.