Newbury Multi-Family Homes

Located at the very northern tip of the state, Newbury, MA, is a coastal town that has a lot going for it. First, property values are growing; in the last year alone, there's been an upward trend that indicates a 6.7 percent growth. This small town is only 36 miles from Boston, which means that it's well within the range of a daily commute.

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Purchasing a Multi-Family Home

With a median home value of 532,695, this town falls into fairly affordable range for a property investor. Single-family homes are fairly common here, but for those that want to purchase a dwelling for multiple families, there are options as well. So, what's the benefit of investing in one of these types of properties?

First, a property of this type is one of the few viable hedges against inflation. Rental properties have a tendency to go up in value based on the fair market, and this appreciation is in line with inflation. As a result, an investment of this type will almost always provide a sizable return on investment if you're patient.

Secondly, if you're looking to find a relatively steady style of cash flow, you can't get much steadier than monthly rents. Of course, part of that rent is going to have to be available for operating expenses, but a good property should provide more than enough to cover this so that you can have a good capitalization rate.

These properties also have the added benefit of also potentially serving as a home for the investor. In fact, it's becoming increasingly popular for investors of multi-unit properties to move in, make renovations or conversions and then move out when the property is ready for tenants. When doing this, the owner can apply for an owner-occupied financing plan, which can reduce the cost of a property down payment significantly.

For those that prefer to live off-premise, things like maintenance, tenant issues, and administration can be handled by a management company. This will take away the need for day-to-day interaction, and since maintenance doesn't usually cost a lot, monthly margins are significantly reduced.

If you have any questions about purchasing property with multiple living units in this town, contact us at Boston City Properties.

Selling a Multi-Family Home

When it's time to sell, there are a few steps that you can take to ensure a smooth sales process.

Consider Leaving a Vacant Unit

Prospective buyers will almost always want as much visual information as they can get before making a property purchase. For this reason, if you can, set aside a vacant unit so that you can show them all aspects of the property during building showings. If you choose to show a tenants apartment, you not only let the tenant into the precarious selling situation, but you also end up at the mercy of the tenant's timetable.

It's also a good idea to ensure that any vacant units are fully furnished similarly to newer tenant-occupied units so that prospective buyers can know what they are working with. It's all too easy to just have a tenant move out and then not really adjust the vacant unit for viewing, but doing so can actually sabotage the sales process.

Finish Any Outstanding Maintenance Jobs

Deferred maintenance happens in just about any property; we just don't always have time to address every issue, but when it's time to put the property on the market these aspects of the building will have to be addressed in order to make the building marketable. Issues like leaking pipes, windows with cracks, or even broken sidewalk pieces can seriously sabotage your efforts to sell the property. It also doesn't hurt to contact an extermination agency so that any pest problems in the tenant units or in the general area can be resolved.

Selling a house for multiple families can take some time, but let Boston City Properties help you speed up the process by proving you access to our vast list of real estate leads that spans the entire state.

Neighborhoods in the Area

This town is relatively small, so there are no real neighborhood divisions in town. The town has a population that's only slightly over 7,000, and the majority of the population lives in suburban housing and works white-collar jobs

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