Multi Family or City Condo ?

[Debora Monteiro]

I’ve come here for some guidance and some advice from more seasoned investors. Any info or insight would be appreciated. Thank you in advance !

I find myself at a crossroads where I need to decide whether it is wiser investment wise to

A. Sell my multifamily and with that money put down 200k on a 500k, 500 sq ft condo in Boston.

Or

B. Invest in another multi family an hour away from where I live, generate more monthly cash flow and rent for $2k in Boston.

The market right now in Massachusetts is outrageous and probably at the top of the bubble.

I’ve been trying to wait it out but I am getting real antsy.

I’m interested in hearing about your thoughts or insights on which investment would be best.

Thank you!!

[Taylor L.]

From a pure investment standpoint - Multifamily!! Condos come with condo associations, which can be difficult to deal with if you're an investor. Condo values are also the fastest to fall and the last to rise when entering and leaving a recession, respectively. 

If you're going to owner occupy the condo, then I'd probably go condo. Rents are sky-high in Boston and you'll at least build equity, gain appreciation over the long run, and get a capital gain tax exemption when you sell (as long as you meet the conditions). The upside may be worth the potential headaches.