Sherborn Investment Properties
The Boston suburbs aren't limited to mid-sized towns and large cities; in fact, there are quite a few small towns like Sherborn that can offer some strong opportunities for investors. This is due to the fact that, despite its smaller size and population of 4,000 people, Sherborn is only about 18 miles from Boston, which makes it an amazing place for professionals to retire to at the end of a busy Bostonian work day. Due to this optimal location, you can easily find opportunities in both residential and commercial real estate settings.
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Residential and Commercial Investment Properties
The first thing that you might note when looking at the residential market in town is that properties are fairly high priced. To put it into perspective, the median price for a home here is around $801,000, and as a result, there is a good market here for rental properties. Additionally, property investors that seek to sell and rent out both standard single-family homes and commercial real estate can also capitalize on the opportunities in the area, but it's a good idea to have a fairly strong pool of capital if you're going to invest this way in town.
Financing is crucial to a property investor's overall process, so let's take a look at the types of financing that you can use to acquire property in a town like this:
- Single-Family Properties – For those that are looking to acquire this kind of property for an eventual sale, there are several options. For starters, you can opt to pursue a conventional mortgage, which typically will require a relatively sizeable down payment. If this doesn't work for you, government-backed loans and portfolio loans are also excellent for investors.
- Multi-Family Properties – The finance-seeking process for a multi-unit property can actually be easier than if you were seeking smaller, single-family properties. This is due to the fact that financial institutions consider these investments safer since they have a smaller rate of vacancy and foreclosure. As a result, there are several finance options; in fact, you can even seize on owner-occupied financing, which can reduce your down payment and give you a place to live as well.
- Commercial Real Estate Properties – Despite being commercial investments, you can grab standard mortgages for properties that house office or retail space. While there is a sizeable down payment on these, finance institutions are fairly willing to provide loan options for qualified borrowers that are seeking out this type of investment real estate. Additionally, commercial bridge loans and commercial hard money loans are also available. In fact, there are even SBA 7(a) and CDC/SBA 504 loans, which have higher loan limits.
In addition to acquiring your property via traditional purchases, if you own a property within the state, you can also opt to initiate a 1031 exchange. This kind of exchange allows you to trade your property with another property owner, and doing so will even allow you to defer difficult taxes like capital gains.
This is a particularly useful means of acquiring new properties in a town like this one due to the fact that many of the properties are priced so highly; with an exchange, you can simply swap up to three properties for a residential or commercial property of your choice.
Real Estate Market Overview and Neighborhoods
If you're going to invest in property, it's a great idea to really get to know the neighborhoods that are within the confines of the town. This is due to the fact that some neighborhoods may be trendier than others, some may have higher rents, some may have better commuting options, and some may just have better properties. Typically, this takes some due diligence, but in a town like this, there is just really one single neighborhood in which to invest. That being said, before you invest, take a look at the geographical location first so that you can select an optimal property.
Choosing the Right Investment Property
Wondering where exactly you should start? Starting out in the property investment process can be daunting, but with the right support, you can quickly create a strong portfolio of investments in minimal time. Give us a call at Boston City Properties at 617-247-1933 today.
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