Cash Flowing Multi-Family Properties in Boston

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Cash Flowing Multi-Family Properties in Boston

Eddie Fleckenstein
New to Real Estate · Boston, MA · Member since 2020 · 17 posts · 5 votes

Hi Everyone! 

Im looking to purchase a multi-family property in the Boston area. This is a first time purchase for myself and my significant other. It will be as a house-hack to stop paying rent and to begin a real estate investment portfolio. The plan is to live in the property for at least a year, then repeat the process by purchasing a new multi-family property, move into the new property, with the first property cash flowing once its fully rented and no longer owner occupied. 

Boston is obviously a very expensive market and when I run numbers on properties seems as though even getting to the 1% rule is hard to do. Does anyone investing in multi-families in Boston have advice on what you look for when purchasing multi-families that cash flow? 

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Jonathan BombaciBusiness Member
Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
5y

@Eddie Fleckenstein we help people househack in greater Boston all the time. Based on the general market what we find is When you're living in the property you'll need to be paying yourself rent, but it'll be less than "market value". When you move out of the property it will have to cashflow. We have done this for clients in Dorchester, South Boston, Waltham, Woburn, Everett, Revere, Lynn, Quincy, Lowell, Lawrence, Nashua, Manchester, Worcester, Clinton, Fitchburg, Leominster, Taunton, and many many more markets in the last 12 months. Most of them even came from the DREADED MLS….

Checkout our company’s profile on BP to see many of the multis we’ve helped people buy in MA recently. We won’t even show clients properties until they run the numbers on them first. This is investing not gambling. Appreciation is great, but CASHFLOW IS KING!

There are plenty of Househack’s within 20-45mins of Boston that make sense based on the logic I described above but you need to be running the numbers, everyday, to find them. The BP rental calculator is great for this. Rules of thumb are just that, run the numbers that’s where you will start to see the gaps in the market. 

We also host monthly meetups under the group “Pints and Properties” in Lowell, Nashua, and soon to be Worcester. They’re posted on the events tabs here in BP. They’re free and open to the public if you get a chance come meet some local Househacker’s that are doing just this in many of these markets. 

I hope this helps,

Best,

Jon

[email protected]978-710-8611
Candor Realty4.760 Reviews
WebsiteView Page
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  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    Seven years ago I moved to Lowell and looked into owner occupying a triplex or quad. There was nothing worthwhile on market so I just rented a condo for my family. And Lowell is more affordable than Boston. You probably aren't likely to find much. Unless you buy speculating on appreciation.

    1Reply
  • Ryan Harwood
    Lender · NY · Member since 2020 · 13 posts · 7 votes
    5y

    Seems unlikely or at least none that I have seen. I have been on lists for this type of prop for a bit over a year. Maybe some of the larger properties could do it but the amount of down payment would be massive.

    I know people have more luck in Worcester and NH

    1Reply
  • Michael DeLaMarre
    Member since 2020 · 25 posts · 27 votes
    5y

    My wife and I were looking to house hack near Boston a year and a half ago. I was running numbers on properties in Dorchester, East Boston, Somerville, Chelsea, Lynn, Roslindale, etc. None of them made sense for cash flow. Most came out around 0.5%. We bought a Duplex in Worcester. We put 15% down to get a conventional loan. Rent from one side pays the entire mortgage, tax, and insurance. It will definitely cash flow when we move out and rent both sides. Prices in Worcester went up ~20% since then though and rents only went up 2%, so you might have a hard time even in Worcester now.

    1Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    5y

    Yield is a function of risk. Major metro areas are typically lower risk due to their high demand, and thus will lead to lower yields.  You need to do 1 of 2 things. Either adjust expectations to the yields in your market, or seek out higher risk markets to get a higher yield.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group546 Reviews
    WebsiteView Page
    1Reply
  • Jonathan BombaciBusiness Member
    Real Estate Agent · Lowell, MA · Member since 2019 · 1k+ posts · 1k+ votes
    5y

    @Eddie Fleckenstein we help people househack in greater Boston all the time. Based on the general market what we find is When you're living in the property you'll need to be paying yourself rent, but it'll be less than "market value". When you move out of the property it will have to cashflow. We have done this for clients in Dorchester, South Boston, Waltham, Woburn, Everett, Revere, Lynn, Quincy, Lowell, Lawrence, Nashua, Manchester, Worcester, Clinton, Fitchburg, Leominster, Taunton, and many many more markets in the last 12 months. Most of them even came from the DREADED MLS….

    Checkout our company’s profile on BP to see many of the multis we’ve helped people buy in MA recently. We won’t even show clients properties until they run the numbers on them first. This is investing not gambling. Appreciation is great, but CASHFLOW IS KING!

    There are plenty of Househack’s within 20-45mins of Boston that make sense based on the logic I described above but you need to be running the numbers, everyday, to find them. The BP rental calculator is great for this. Rules of thumb are just that, run the numbers that’s where you will start to see the gaps in the market. 

    We also host monthly meetups under the group “Pints and Properties” in Lowell, Nashua, and soon to be Worcester. They’re posted on the events tabs here in BP. They’re free and open to the public if you get a chance come meet some local Househacker’s that are doing just this in many of these markets. 

    I hope this helps,

    Best,

    Jon

    [email protected]978-710-8611
    Candor Realty4.760 Reviews
    WebsiteView Page
    7Reply
  • Timothy White
    Realtor · Boston, MA · Member since 2019 · 91 posts · 60 votes
    5y

    Well your live style choice is evident in your desire to invest in live in the wonderful metro Boston area.  We were just in east Boston for Father's Day brunch this morning . I find myself as a realtor and investor admiring the diverse architecture from many different eras in that burgeoning area.

    the market is much harder yes however we just had kids of good friends of ours complete thier homing  journey by patiently waiting for the right situation to be found. The got into a home that needs enough work to ward of the overbiddrs and will reliaze a few hundred K in upside when they polish this property up.

    your post tells me you want the Boston /metro lifestyle . If that is true , would be patient and focusd on the search to eventually find your next place.

    Congratulations on the simple tried and true path your Nd your person are in to real wealth

    1Reply
  • Marc M.
    Investor · Taunton, MA · Member since 2015 · 14 posts · 3 votes
    5y

    @Eddie Fleckenstein I got a multi in Taunton just renovated. Let me know!

    0Reply
  • Zac Ballin
    Rental Property Investor · Boston, MA · Member since 2017 · 44 posts · 17 votes
    5y

    You can definitely make this happen.  People have been saying forever if you look back through the forums and listen to the older podcasts that you can never find cash flowing deals in Boston.  I've bought 5 in the last 2 years.  I have one smaller one for sale now.  It just comes down to how hard you're willing to hunt.  Don't listen to anyone who tells you it can't be done.  If you want it, go get it. 

    4Reply
  • Timothy White
    Realtor · Boston, MA · Member since 2019 · 91 posts · 60 votes
    5y

    Love it Zach 

    We just did a single family where our client will pocket handsomely (if they ever sell )because they had the fortitude and patience to comb through this market together

    1Reply
  • Eddie Fleckenstein
    OP
    New to Real Estate · Boston, MA · Member since 2020 · 17 posts · 5 votes
    5y

    Thanks for everyone's comments! We actually found a 3 family in Chelsea and my significant other and I had our offer accepted! Going through the closing process now, hopefully it all works out! 

    2Reply
  • Michael DeLaMarre
    Member since 2020 · 25 posts · 27 votes
    5y

    Congrats!

    1Reply
  • Abhishek Sharma
    Member since 2022 · 11 posts · 2 votes
    3y

    Hi @Eddie Fleckenstein, I am looking to do the same now. I was wondering how was your experience ?

    0Reply
  • Jared K.
    Rental Property Investor · Chelsea, MA · Member since 2017 · 22 posts · 2 votes
    3y

    @Eddie Fleckenstein how is your venture going? I did the same in Chelsea on Cary Ave, 3-fam. Got low interest rate so finally as of today at a point where the 2 rentals pay for me to stay for free. Got it on MLS with FHA loan, been here for 3 years, fabulous investment so far and looking to do it again, once I have enough capital.

    0Reply
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