New to REI & BP - Boston seems like an anomaly!

[Nick Cecchini]

I found out about BP about a month ago and since have gone back to 2013 and gave myself a crash course with the podcast (which has been incredibly useful!)

I’ve been tracking the Boston market in preparation for my second property for about a year now, and it seems that all of the rules and calculations divulged by podcast guests (the 2% rule / don’t invest in a multi unless it’s cash flow positive) would NEVER apply in the greater Boston area. For example, 2 family homes in my area (not renovated at all) go for 800,000 and would only net around 5,000 max for total rent.

I would love to hear from some fellow investors in the Boston area (who didn’t start off with millions in capital) to learn how you got started. If anyone would be open to connecting, that would be great!

[Lior Rozhansky]

@Nick Cecchini welcome man! So most common "back of the napkin" rules that you hear on BP just dont translate over to Boston at all. You can't really compare the cash-flows of mid-west or even most southern markets (where a lot of these podcast guests tend to be from lol) to that of Boston, which has been one of the strongest economic markets in the US the last decade. Apples to oranges. 

That being said, there are still plenty of solid rentals plays to be made. Looks like you are from Dot, so even though a lot of the 3 fams you may be looking at are pricier (aka 800/900), the rent rolls on can hit 8-10%+ CoC returns because the rents are so strong. You can even look at 2 fams that have large bedroom counts, like 3-5 bedrooms, which can also really push your gross rent roll.

I've personally house-hacked twice as well as bought other rentals, and there are plenty of other success stories. The trick with the Boston market is you have to understand the different pockets and the risks/rewards that comes with each one!