Is Boston MA a good place to invest in real estate? I've heard that Boston is not a good area to invest into real estate but if you can't in succeed in your own backyard how can you succes in other places.thabks
Hey Michael, that's kind of a loaded question but I live locally and I would argue it is a good place to invest in. We live In a mature market with high rents and low vacancy. It can be challenging to find a good cash flowing property but that's half the fun.
@Michael Wilson Who'd you hear from about Boston?
I ask folks to Vet their sources first.
i.e. There's a gifted Orthopedic Surgeon that lives behind me, who gives me Real Estate advice every time I see him. Problem is, he's always wrong or 6 months behind, but I'm still nice to him.
My guide is: If someone's in RE and ahead of me moneywise, I'll consider their advice. If not I'm at least civil to them...
@Rob L. I agree that's the fun, having the insight to make a deal work!
What's your investment strategy that you are trying to apply to Boston? Some strategies are better in certain markets and less successful in other markets.
MA is not a landlord friendly state if you are investing in rentals. Everything protects renter.
@Matthew Dovner is correct that MA has stricter laws in regards to protecting the tenant vs landlord.
@Michael Wilson I am a broker in MA and NV (Las Vegas). Las Vegas is not as strict on the landlords as MA and it is easier to get a nonpaying tenant out of the property. MA's eviction process is much longer and kills your cashflow if you get a bad tenant. I think this is one of the reasons multifamily properties are in higher demand. If you have one bad tenant in a 4plex the other units (if all paying) will lessen the negative cashflow while you go through the eviction process. In NV you are looking at 30 days to evict, in MA closer to 6 mo.
I used to say the same about Boston but like @Mike Hurney said, it's really about the source of your advice. I started looking out of state for a while and now back to looking in my own back yard. It's challenging but not impossible.
On another note, I was wondering if there was any research done regarding the potential bubble in the Boston market? The prices keep going up which makes me worry a little. Any advice from the experts?
@Georges Arnaout Thanks.
In your own backyard, I scratched the surface for a little data on the MLS:
Medford - #Sold - DOM - Avg Sale
Q12014 - 43 - 58.53 - $408,616.
Q12013 - 48 - 58.81 - $409,113.
Q12012 - 48 - 115.73 - $337,170.
Given that a few low or high sales can skew the data what do you make of this?
Now Boston, a little more difficult because of the area and subsections.
@Mike Hurney you're the expert you tell me ;)
I can't really make much from this data. The difference b/w 2013 and 2014 doesn't seem to be statistically significant as far as the avg sale.
Could you elaborate more for the newbies such as myself?
@Georges Arnaout Thanks, I'm the "expert" in my farm, only because I study it.
First, what's your Background (e.g. Artist, Account, Contractor, etc), what are you Looking to do (Buy and hold, Flip) and what Data would mean something to you (# of Houses or Months of Inventory, Owner Occupieds, Type, Mean income/Mean Sale price)?
Background: I am a Simulation Analyst (research, data analysis, computer modeling, etc) Not REI , trying my best to learn as we speak.
Looking for buy & hold properties in Middlesex.
What means for me is any data that I could use to predict if I am currently buying at the peak of the bell curve or the bottom. The market is cyclical as we all know, and the sellers have been selling like crazy, are we expecting the house prices to shoot down? that's what I am trying to understand so I dont end up over paying for properties.
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