I am very new to Boston and I am a newbie in real estate investments.
I am moving to Boston to work this June. I want to learn more about the real estate market and invest in rental houses in Boston. I have several requirements for the house:
1. Great area to rent our the house
2. Safe neighborhood
3. Easy transportation to work (Better to have Link stations nearby)
4. My budget is probably capped at 600k
Here are my questions:
1. Are there any areas that you recommend I can take a look at (Great to do house rental)?
2. Should I target multi-family or single-family houses?
3. Should I be concerned about the age of houses in Boston? I heard most houses are very old.
4. If the house is old, should I waive any inspection contingency or any contingency?
5. What should I pay attention to specifically when I go to do a house tour?
Sorry, I know there are a lot of questions. Thank you so much for answering!
Hello and welcome to the BP community. Boston is a large metro so it's hard to really pin point exactly where the best investment would fit your needs and budget but here's a short breakdown to your questions:
1. Are there any areas that you recommend I can take a look at (Great to do house rental)?
Metro towns around the city with T access - North would be Malden, South is Quincy, and West is Newton 2. Should I target multi-family or single-family houses?
Economies of scale for multis is always the best but given your $600k budget you would likely sacrifice distance and go outside the city for a two fam or stay closer to Boston for a single fam.
3. Should I be concerned about the age of houses in Boston? I heard most houses are very old.
Most homes are built in 19-1925 in Boston, that's our general housing stock, you have to assess it from property to property to find a house with good bones.
4. If the house is old, should I waive any inspection contingency or any contingency?
Dependent on home and what you feel is comfortable to waive contingency or not. You should not flatly waive it for every home you buy.
5. What should I pay attention to specifically when I go to do a house tour?
Home itself - Structural, mechanical, and foundational issues. External - Neighborhood, area, transit, and crime rates.
Best of luck with your search and welcome to Boston!
What about Condos? Are Condos worth investing in Boston Area? I see some Condos in Seattle have limits like forbidden to rent(first year or ever), limit units renting, etc.
HI @Liu Qi, condos can be a great investment. I actually just helped a client purchase an investment condo in Jamaica Plain (a neighborhood you might want to consider when you move).
The downside to condos and single family homes is that if you want to make rental income, you'll have to either:
-Live in the same unit as your tenants
or
-Invest in renovating the unit to make private space for yourself (likely cost-prohibitive).
If you're not open to living with tenants, I would recommend you like outside of Boston and find a multifamily. Multi-families in Boston proper will likely be outside of your price range.
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