Boston Rental Property Advice

[James Lydon]

Hi All, I am currently a condo owner in the Boston area and looking to getting into Real Estate, specifically rental properties. i have been doing some searching on the market for the past few months but have not seen deals that would properly cashflow, at least to my knowledge. Is there something I am missing? Maybe I am just being impatient and the right deal takes time but I would love to hear other opinions. Based on the Boston market and my price range I have been looking at 2 and 3 bedroom condos.

I have strictly been looking in the Boston area bc I have knowledge of the rental prices, and thought it would give me the best opportunity to cash flow. Does anyone have successful experiences in the Massachusetts/Boston area with rental properties and willing to share some advice. Thanks!

[Michael Vazza]

Hi James, unfortunately that is going to be the case with Greater Boston which is primarily driven from appreciation rather than cashflow. If you are comfortable looking about 20-30 minutes around the city or further you'll see better results.

The reality is you probably won't cash flow for the first few years at least meaningfully (but high demand and terribly low supply will continue driving appreciation). I would focus on identifying an area you feel comfortable living for that time period and let the market rents increase and then move forward renting it. Depending on when you bought your current condo, you've probably see the difference just a year or two in Boston can make if you were to rent that vs. what's currently available with the numbers. 

If you have other roommates or people paying per room that'll obviously be a huge plus and can change the situation more immediately.