Looking for Advice in Boston area

[Phillip Dixon]

Hi there!

New in town & tired of renting! I am a hotel manager, and have been for a long time. I’d like to try my hand at being land lord as well. I’d just like to possibly meet an agent, or better yet, friends and a community! I love talking shop & it seems some of my experience seems to translate!

Rather than getting super hung-up on price. We have been laser-focused on potential Cap Rate & NOI. We have funds to rehab, but don't want to bite off more than we can chew with deep rooted issues.

Specifically been eyeing Chelsea, Quincy, areas of Dorchester, south Boston, and possibly Salem.

To make the numbers work, it seems as though duplex is out of the question in the area while turning a live-in profit? We have been eyeing triplex mostly. If we are in the smallest unit, I only see that being in our favor!

Thank you in advance!!

[Lien Vuong]

Hey Phil! Welcome to the BP Community and specifically the Boston forum! Where did you move from? You were speaking singularly then as plural - who is the we? 

You're entirely correct - 3/4 units will be the most fruitful investments because you have economies of scale and you tend to have larger units increasing your rental rate significantly. If you're looking for value add properties Chelsea/Everett is more common with that type of property as there area a lot of 'tired' landlords there. 

South Boston will not yield any multis as the majority of that inventory has been turned into condos. Quincy and Boston (Dot) will have an abundance of multi in all different type of conditions as these cities are really vast and even tenant classes change from street to street. Lastly, Salem has a large amount on two families but not as many 3's. That will be an absolute rarity. 

How are you proposing financing this? With your FHA owner occupied loan initially then cash out?