Massachusetts Multi-family Properties for Sale
Whether you are already well-versed regarding property investing or are just getting started, odds are that you primarily focus on single-family properties for generating rental income. In a hot market like Boston’s, it certainly pays to include plenty of such properties in your portfolio. If you really want to maximize your potential returns, however, it’s probably time to invest in some multifamily properties too. That’s especially true in Boston, as the vast majority of rental properties are units that are located within multifamily buildings and developments. With all of that being said, however, investing in multifamily housing is a whole different ball game, and it pays to have all of the help that you can get. Rest assured of that by connecting with Boston City Properties.
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Perhaps you already own rental properties in outlying Boston suburbs and are ready to move inward more toward downtown, where some real money can be made. It is easy to feel like you can’t hope to compete with more seasoned investors, as they typically swoop in and tend to have immense resources, but the truth is that you can access all of the same information as them—and there’s no reason that you can’t use it to your advantage to break into this exciting form of property investing.
On the other hand, maybe you are completely new to property investing and have simply decided to focus on multifamily housing because it is the most ubiquitous type of property in the most densely populated parts of the city. The good news is that you absolutely don’t need experience in single-family properties to make a go of it in this department. However, as competitive as the market is for multifamily housing investment opportunities, it is especially crucial to arm yourself with all of the resources that you can—and Boston City Properties should be your first stop.
While Boston City Properties focuses more on real estate as opposed to property investing, we are an important resource for anyone who wants to successfully invest in Boston real estate. That is because we offer a wealth of resources that make it a lot easier to find promising options. In particular, we maintain one of the largest and most comprehensive online databases of MA real estate listings around. You can get immediate, free access right now simply by completing the easy signup form. In seconds, you’ll be on your way to zeroing in on great listings.
By availing yourself of our convenient search tool, you’ll quickly amass a list of listings to examine more carefully later. You can then contact Boston City Properties for more in-depth information regarding various properties on your list. Our team can also get answers to any questions that you may have about listings in your results. When you are ready, we can refer you to a local real estate agent who specializes in multifamily properties and investing, so you can start visiting properties and become that much closer to finding exactly what you need.
Investing in Massachusetts
Regardless of your previous property investing experience, the idea of purchasing an entire building of rental units can be pretty intimidating. After all, isn’t that kind of thing strictly reserved for heavy-hitting investors? Not so fast. In reality, investors of all stripes, experience levels and resources do well by investing in multifamily buildings not only in Boston but across the state. While the steps involved in buying such properties tend to be different and more involved than in buying single-family properties, owning and managing such properties tends to be a lot simpler in the long run.
When purchasing investment properties in Massachusetts, it helps to start by zeroing in on a specific geographic location. Even if you are literally okay with owning a property anywhere in the state, your search will be a lot more productive when you limit it to specific cities, towns or Boston neighborhoods. The great thing about Boston City Properties’ search tool is that it allows you to search by city/town, Boston neighborhood or even by zip code. Having the ability to be so specific about where you’re looking for investment properties makes it a lot easier to find something suitable.
Besides location, many additional variables affect the viability of any investment opportunity. Needless to say, for example, you want to get a good price for the property. After all, you won’t just be collecting rental income; at some point, you’d probably like to sell the property for a profit. For that to happen, you need to negotiate your way to the fairest price. Boston City Properties can refer you to a local agent who can assist you during these negotiations, which can often be stressful and confusing. From assessing the overall value of a property to determining its income potential, your agent will help you to get off to a great start.
The Massachusetts Housing Market
With demand for housing higher than ever in Boston and growing steadily throughout many metro areas across the state, now is a terrific time to break into multifamily property investing. Over the last several years, construction of multifamily housing has exploded across the city of Boston and in many parts of the state. Needless to say, large investment groups get in on the new, shiny, soaring properties; for the little guys, there are still plenty of options, though.
To put this into perspective a little, let’s look at some data from the last few years. For the 12 months leading up to July 2016, approximately 5,400 new multifamily units were being developed across the city of Boston. This represents an increase of around 10 percent over the preceding 12 months. While many of these new units were apartments—especially luxury apartments—more of them were condos. Around 1,350 new condos were being developed in 2016, and that is only in Boston. For the 12 months prior to July 2016, only around 350 new condos were built, so it is safe to say that construction continues to be on an upswing.
What does this uptick in construction mean for investors like you? Boston City Properties can help you to assess the current state of the market to determine the best course of action. Some investors fear that the market will become oversaturated and that asking rents will start to fall. That is always a legitimate concern, of course, but with property values so high in Boston and appreciation rates steady just about everywhere, you should still do okay even if rents drop because the property that you now own will gain more and more value over time.
While Boston’s market is dominated by high-rises and other large buildings containing dozens or even hundreds of units, it is possible to find buildings of virtually any imaginable configuration for your investment needs. In various neighborhoods and in communities across the state, you can take your pick from properties as small as duplexes or as complex as complete luxury developments. Niches within the field are worth exploring too; for example, senior housing is a good area to consider. Boston City Properties will refer you to an agent who knows the local market well and who can help you identify promising niches.
Benefits of Buying
Whether you are seasoned regarding single-family property investing or are going to start investing in real estate for the first time, you may be on the fence about plunging into the world of multifamily housing. All too often, investors are so intimidated by the very idea of moving over to multifamily that they refuse to leave their comfort zones and miss out on incredible opportunities. Before making your decision, then, make sure that you are aware of the considerable benefits of owning multifamily properties. These include:
- Get a faster return on improvements – If you’ve ever poured money into renovating a single-family property to squeeze more income out of it, you know how frustrating and slow the process can be. In those cases, you aren’t likely to realize a return on those improvements for an extended period, as you only have one tenant paying rent. When you make improvements to a multifamily property, however, you can start charging more as new tenants come in. In this way, you can start enjoying and profiting from the fruits of your labor that much more quickly.
- Enjoy new and considerable tax breaks – Just as there are tax advantages to owning single-family investment properties, there are lots that go along with owning multifamily housing. In fact, it could even be argued that you stand to benefit more from a tax perspective by owning this type of property, as the stakes are so much bigger. Depending on the type of housing that you will provide, you may receive additional benefits or perks from local, state and even federal municipalities. Best of all, you can get major tax breaks from a single multifamily property as opposed to smaller breaks from several properties, which is easier to manage.
- Have an easier time managing your investments – A great deal of income can be generated by investing in carefully chosen single-family properties. However, the more of these properties that you add to your portfolio, the more difficult it becomes to manage. In no time, you may find yourself paying others considerable money to help you—and watching your profits drop. With multifamily housing, multiple tenants are in one place, which means that multiple income streams are too. Rather than having to run around town to multiple properties to manage them, you can pare things down to just one or two.
- Realize extra opportunities for cash flow – In addition to generating multiple streams of rental income, a carefully selected multifamily property can open the doors to many other cash flow opportunities. As mentioned before, you will see returns on any improvements that you make much faster. Some of these improvements can help you start generating more cash immediately. For example, you might add concierge services for an added fee, or you might add other services and amenities that cost a bit extra on top of rent. You can be far more creative with multifamily, so you stand to do a lot better.
- Grow your investment portfolio faster – When first starting out in property investing, the going can be painfully slow. Most investors prefer to focus on one new property at a time, and single-family properties only come with one income stream in most cases. On the other hand, a single multifamily property can include several or even dozens. This is also another way to diversify your portfolio, which is an important step in protecting your long-term viability. The bottom line is that if you want to step up your property investing game, breaking into real estate is the way to go.
- Sell for a profit fast – While it varies based on the specific submarket where it is located and on many other factors, multifamilies tend to appreciate well. Even if your long-term plan doesn’t include selling the property in the future, it is nice to have that as a backup option. If you end up in the unfortunate situation where your property just isn’t generating the kind of income that you need, you should be able to sell it for a nice profit within a reasonable period of time—so you are less likely to suffer long-term consequences.
- Do something good for the community – As a property investor, you are mostly in it to make money. However, it is nice when you can do something good for others at the same time. When you fix up an old building to provide nicer housing units, you help the community at large. Knowing that you are providing safe, clean and affordable housing feels great, and it is satisfying to come up with new ways to make life better for tenants. If you decide to invest, then, try to keep this outlook in mind.
Tips for Buying Properties in Massachusetts
By now, you have hopefully given plenty of thought to the matter and have decided to go ahead and take the plunge. There are so many advantages to investing in multifamily that anyone who invests in MA real estate should at least consider doing so. Should you decide to proceed, however, take some time beforehand to learn the basics. Start now by reviewing the following tips and considerations to keep in mind when buying and investing in multifamily real estate in Massachusetts. By doing so, you won’t feel nearly as overwhelmed:
- Get detailed paperwork regarding the property – It is easy to get excited about a property early on only to learn that it doesn’t have much to offer in terms of investment income. Unlike with buying a house, your top concern shouldn’t be the overall condition of the property; rather, you should carefully assess its potential for generating rental income. At the very least, ask for the current rent rolls for the property to see what tenants are paying, and get income and expense reports for the last few years. Collect any reports that you can about the operation of the property to more fully understand what you’re getting yourself into.
- Check vacancy rates – Just because the property that you are considering now is mostly occupied doesn’t mean that it will consistently remain so once you own it. This is why it is so important to check vacancy rates not only for the specific property but for the neighborhood and surrounding area too. Boston City Properties can refer you to a local real estate expert who can bring you up to speed about vacancy rates for whatever market you are exploring. After all, the last thing you need is to buy a property and to struggle to keep it occupied.
- Keep lots of cash handy – Whatever you do, don’t spend your very last dime procuring a multifamily property investment. Even more so than with single-family properties, the potential for needing a lot of cash at once to address a maintenance or upgrade issue is exceedingly high. Nothing can ruin an otherwise great investment opportunity like being unable to maintain and improve it as needed, so don’t go broke trying to buy one of these properties. Our team can help you determine how much cash you should keep on hand as the landlord of such a property.
- Consider owner-occupied financing – Always buy multifamily properties with cash if possible. That isn’t always an option, of course, and obtaining financing can be a major headache for an individual investor. One great way around this issue is by living in one of the units yourself, as you will then quality for owner-occupied financing. This type of financing is much more flexible, and you don’t usually need nearly as high of a down payment. You can usually qualify for even more tax breaks by doing this, so you stand to save money in that regard as well.
- Talk to current tenants – A great way to get a real feel for what you are potentially walking into is by speaking to some of the people who currently rent units in the building that you are considering. If you are able to, take the time to ask as many questions as you can. How do they like the building? Is it in decent shape, or is work needed? Do new tenants come and go frequently? Is crime an issue? With answers to these questions, you can build a picture of just how nice or not-nice a potential investment property is.
- Have a careful valuation performed – Don’t make the mistake of not worrying too much about the value of your investment property because it will generate multiple streams of rental income. It is still absolutely vital to ensure that the property will maintain its value and, with any luck, appreciate well in the years to come. Even if you don’t plan to sell anytime soon, having equity to fall back on for repairs and upgrades is always wise. The valuation shouldn’t just look at the property itself; it should also look at the property’s income-generating capabilities. This can be done by determining net operating income in addition to fair market value.
- Get the right help – We’ve saved the most important tip of all for last: Arm yourself with the right help and resources when investing in properties in Massachusetts. Since you are reading this, you are already well on your way in that department. On this page, you can sign up for free, instant access to Boston City Properties’ real estate listings, including listings for multifamily properties for sale in Boston and across the state. By contacting us, you can get a referral to a local agent who knows the investment market well and can help you find precisely what you need.
How Boston City Properties Can Help
It is easy to feel overwhelmed and uncertain when trying to break into the world of property investing. That’s true whether you already have property investing experience or not. The matter is compounded by the fact that different markets have different offerings, and navigating various markets can be tricky. Given that Boston City Properties are the experts when it comes to MA real estate, it makes sense to connect with us for all of the help that you could possibly need to find great multifamily property investment opportunities.
Some of the ways in which Boston City Properties can help during this endeavor include:
- Real estate listings – This point can’t be emphasized enough: Boston City Properties maintains one of the most comprehensive online databases of searchable MA real estate listings around. You don’t have to pay a thing to use it. Just complete and submit the simple form on this page, and you will be on your way. Without a doubt, this should be your first step when seeking real estate to invest in, as you can quickly get a feel for what’s available.
- Powerful search tool – All of those listings are very helpful, but wading through them all could be challenging. You know what you are looking for, so use our search tool to find it more quickly. Within the tool, you can select the specific area where you are looking. Choose from Boston neighborhoods, Massachusetts towns and cities and even from specific zip codes. You can also use filters to refine your results even more. With a few clicks of the mouse button and a few taps of the keyboard, you will have a list of promising listings to explore.
- Email updates – To be especially thorough, we will send you email updates any time a new property appears that meets your criteria. This is important because most submarkets in the state are very competitive and fast-paced. Properties that are available now may be snapped up by tomorrow, so it’s crucial to act quickly. Boston City Properties will send you period email updates alerting you of new properties that meet your criteria. That way, you can rest assured of always being completely up to date about current availability—and you can act quickly when the time comes.
- Resources - Boston City Properties’ website is loaded with a huge array of helpful resources for everyone from house hunters to real estate investors. As you navigate around the site, you will find articles that go into more detail about the ins and outs of investing in different property types in Boston and across the state. Reviews of specific apartment developments are available, and they may help you to more clearly understand what tenants are looking for. Our team is always here to assist you as well, so be sure to give us a call whenever you need further help.
- Agents – Finally, Boston City Properties has connections with experienced real estate professionals in all Boston neighborhoods and in towns and cities across the state, including agents who specialize in property investing in general and multifamily properties specifically. When you are ready to move forward, give us a call. We will refer you to an appropriate agent who can take it from there. Your agent can take you to look at properties on your list and assist during negotiations. They can also help determine the income potential of a property and guide you through to closing.
Are you ready to find out what all of the fuss is about regarding investing in real estate? Opportunities abound across the state of Massachusetts, and investors from all walks of life stand to do quite well. The trick, however, is finding properties that are really worth your while—and that largely depends on having access to timely and accurate information. When you connect with Boston City Properties, you get that and a lot more. Don’t wait another minute to begin your new investment journey; call Boston City Properties today for more information.
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