Seeking a 1031 Exchange Opportunity north of Boston

[Jordan Crumley]

I am in the process of selling 4 condo units in Somerville. I will have net proceeds of ~$1.7MM, and I am looking to do a 1031 exchange. I wanted to reach out to the group to see if anyone had any idea of new markets I should explore in the Boston area? I currently own rentals in Everett and Somerville, but the current pricing doesn't make any sort of sense from a leveraged cash-on-cash return (cap rates are super low). So I am looking for a new market to look at that has better cash flow and higher cap rates. Any advice would be appreciated. 

[Russell Brazil]

@Jordan Crumley Im actually not a big fan of Chelsea, but that is probably because I am originally from there, so it is hard for me to see the positives that other people see. On the flip side of that I live in the DC area, and I find many of the locals do not see the positive attributes of the marginal areas here while I can. So sometimes being an outsider can help with the clarity in that.

The Soldiers Home area of Chelsea is more desirable. Rents are not necessarily higher there, but property values will be...so on a cash flow basis that may not make the most sense.

If I were going to buy there, I might consider a small brick apartment building, there are several around town (of course timing it to when an owner might sell will be hard). I took a serious look a few years ago at buying a brick apartment building at the corner of Brodway and Webster ave. I kind of regret not buying it. Id also give consideration to 3 unit brick brownstones near the water front and entrance to the Tobin Bridge.

Chelsea has plenty of negatives, which I am sure you are familiar with....but on the other hand 30 years ago Charlestown and Somerville were giant s**tholes as well just like Chelsea. At some point it has to turn around right? Of course Ive been hearing that my entire life.