Investing in Massachusetts

[Devin Cooper]

Hi,

My wife and I are new to real estate investing and are looking to buy a multifamily in massachusetts (currently live in Norton but I could buy anywhere that connects to a south station commuter rail). I have not found any listing on the MLS that would cash so I would love advice on where to start.

Devin

[Charlie MacPherson]

@Devin Cooper Eastern MA is challenging for owner occupied and cash flowing.  Ideally, you're looking for a 4-plex, which gives you a place to live while collecting three other rents.  The problem is that there are far more 2 and 3 unit MFRs than 4 units.

Anything inside RT 128 is going to be priced very high and is less likely to cash flow.  There are some areas on the south shore and south coast that are worth considering.

Wareham, Taunton, Brockton, Fall River and New Bedford all feature lower acquisition prices - but balance that by looking at local crime stats.

Middleboro is a bit of a gem in my opinion, as you get somewhat lower pricing without the same kinds of crime density.  Plymouth also, but prices are a bit higher.  Not Boston high, but higher than the others mentioned.

Don't forget to take the reduced/eliminated cost of your own housing into account when running your numbers. Yes, you could be collecting additional rent on your own unit if you didn't owner occupy, but you'll have to pay rent somewhere else. You also don't get owner occupied financing, so instead of 3.5% down with FHA, you'll be looking at 25%+ down.

BTW - all towns I mentioned above have MBTA Commuter Rail access.