Westport Investment Properties

Despite being in Massachusetts, the town of Westport is actually considered to be in the Providence Metro area. This beautiful town is currently growing; in fact, in the past year, the town has experienced a 5.9 percent growth in home value. As a result, this is an optimal location for investors looking for an investment location that will have a significant natural appreciation. As a matter of fact, this three-neighborhood town has a wealth of single- and multi-family residences that are excellent for an investor looking to take advantage of the stable market in the area.

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Residential and Commercial Investment Properties

If you're trying to get an idea about what the predominant property type is in this town, it's relatively clear that it's the single-family home. About 84 percent of the homes in the area are this type of property, and as a result, people looking to flip a property or simply rent one out to a local family can certainly make some money doing so in this area.

Having stated that, there are definitely some options for other types of properties as well, so let's take a look at what else is available:

Multi-Family Homes

• Duplexes – With a preponderance of single-family homes, an investor can make some money converting them to duplexes. Duplexes are multi-floor residences that have a different tenant living on each floor of the property. In most cases, the tenants will rent the units of the duplex, but it's also possible to sell each unit individually. Typically, a duplex is a two-floor home, a triplex is a three-floor residence, and quadplexes have four floors.
• Condos and Townhomes – When thinking of these properties, it's important to understand that the tenant will own their specific unit. With condos, the living arrangement is very apartment-like, and for townhomes, the property usually has adjoining units that are separated by a wall. In both situations, an owner can make some steady cash flow by renting these out to tenants.
• Apartments – Apartment complexes and high rises are multi-unit properties that typically will have multiple tenants on a single floor. Typically, these properties are managed by a lease, which typically spans anywhere from one to two years.

Commercial Real Estate

• Office Space – A business owner needs space to do business, and an office space opportunity is great for startups and small businesses. Typically, these properties also have triple net leases, which also fold in the cost of maintenance, taxes, and insurance. As a result, the capitalization rate on properties like this tends to be a little higher.
• Retail Space – Retail space also has triple-net leases that can generate a lot of cash flow, but this type of property also stands out for longevity as well. Typically, businesses that deal in retail want a stable location for their clientele to visit, which is why these leases often range from five to 10 years. As a result, cash flow is fairly strong with a retail space investment.

Real Estate Market Overview and Neighborhoods

This town has three neighborhoods that have fairly strong housing markets. Let's take a look at each:

• Acoaxet – When looking at a neighborhood like Acoaxet, it's important to understand that it does have a higher vacancy rate of 39.8 percent. While this might look alarming, it's crucial to know that this is due to the fact that this area is typically an area that has a high level of seasonal occupation. This means that vacationers come into this coastal area in the spring, summer, and early fall, but after this, vacancies tend to increase. From an investment point of view, this isn't bad because you can typically make your money during the warmer months.
• Town Center – Unlike Acoaxet, the town center here is predominantly not used for seasonal occupation, and as a result, the vacancy rate in this town is only about 7.4 percent. Property values and rents here are also relatively low for the Providence Metro area, which means that this is a good place to invest in the area.
• North Westport – This northernmost section of town has the lowest median home values and average rents. Despite this, many of the properties here are medium-sized three- and four-bedroom properties. Residents are often in professional, white-collar jobs, so there is definitely a market for most property types.

Choosing the Right Investment Property

In such a healthy real estate market, it can be a bit daunting to find a property type that will work best for your personal needs. This is where a brokerage like Boston City Properties comes in; we have years of experience in neighborhoods like this one, so we can help you navigate the real estate landscape in the area. Give us a call at 617-247-1933.

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