Best Towns/Cities to Invest in MA?

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Lior RozhanskyBusiness Member
Real Estate Agent · Boston, MA · Member since 2016 · 106 posts · 69 votes
9y

Hey Daniel, I'm on the hunt for areas where I see sustainable economic drivers. Obviously Boston as a whole is one of the most diverse economic cities in the US, but I think finding the right pockets is essential. It's tricky here, because any area that's close to Boston that's not an A area is supposedly the "next Somerville", so I think it's really important to understand what's driving your market. My buy and hold is in Everett. No, I don't know if the Casino will explode the real estate values in the city. But what I saw was that it will create close to 3,000 new jobs in the area. Those 3,000 jobs translate to tenants in search of nearby housing. So regardless of what the value of homes may be, my units will always be in demand. I think there are other pockets of opportunity like that in eastern Mass. 

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  • Flavio Zanetti
    Investor · Andover, MA · Member since 2015 · 269 posts · 67 votes
    6y
    Originally posted by @Lien Vuong:

    @Zachary Herrera some parts of Lowell are B but generally is B-. Lawrence is going to be a similar situation. Larger cities tend to be neighborhood by neighborhood. For example, Haverhill's Bradford would be the most desirable area and a whole different type of rental market than most of the city. 

    My experience has been that Lowell is a somewhat better market than Lawrence but each to its own I am sure... 

    How about Haverhill, Plaistow, Merrimack, etc.? Just curious... 

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  • Nick Jasinski
    Real Estate Broker · Boston, MA · Member since 2020 · 18 posts · 7 votes
    6y

    Hello everyone! New to the Biggerpockets community here, this was a very helpful thread.

    I see everyone has their own niche, opinion, etc. I am looking to get into a property in MA for the purpose of cash flow. My two key things are I do not want to leave my apartment in the city, at least for a couple years (so no house hack or FHA), and I would like to put as little as possible down (I see it can be possible from Brandon's book about investing with little (or no) down payment).

    I know this is asking for a lot, especially in MA, so is it even possible to do here? I have also looked into out-of-state markets for a first purchase, but I would ideally like my first real estate investment be where I can get to it, see progress, etc. I am open to the property needing a little cosmetic work, which I would like to package in the loan.

    Can anyone provide me insights? Am I asking too much? Any help is very much appreciated!

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  • Adeson Bame
    Member since 2020 · 1 post · 0 votes
    6y

    hi all, i am trying to get started on investing in my first property to use it as a owner/rental property and aiming to get a Multi family house. Looking at the market right now, it looks like everything inside I-95 is way to expensive for my budget. i am looking at some options in Franklin MA, where it seems to me that the prices are more affordable. The property is close to the train station in a walkable distance. Any suggestions on what i should be considering when evaluating this possibility? Is Franklin too far from Boston, far enough to have an impact on the renting price?

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  • Pavan Basavapathruni
    Member since 2019 · 3 posts · 0 votes
    6y

    Hello All, I am new to real estate Investment and I choose Everett for a multifamily investment. What are you thoughts on this town. I am hearing mixed reviews on this town ? any feedback and thoughts are appreciated. 

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  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    6y

    @Pavan Basavapathruni Everett is considered one of the hottest markets in this cycle with a 5-7% appreciation in the last 5 years. It's logistical advantages coupled with growing number of local amenities (Fermentation District, Encore Casino, Biking Trails) are making it much more attractive for millennials to start owning properties and moving to this community. If you look at the permits board and zoning hearings in Everett you'll start to get the picture of the amount of developments happening in town. 

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  • David Shapira
    New to Real Estate · Brookline, MA · Member since 2019 · 26 posts · 15 votes
    6y

    @Art Perkitny thanks for providing that spreadsheet. Super helpful! But none of the rent to price ratios approach 1%. Does that mean that cash flow would be hard to come by even in the green areas? And how would population growth necessarily translate to appreciation?

    0Reply
  • Jeffrey Allen
    Rental Property Investor · Cambridge, MA · Member since 2020 · 32 posts · 45 votes
    6y

    Greetings All,

    I am also new to REI and found this thread to be incredibly useful.

    I'm looking to house hack for as it makes sense for my family living situation.  We need to stay in and around the Cambridge/Somerville/newton area for jobs.  

    The main investment plan is for cash flow from multifamily units.  I am still researching the best areas to find the best deals.

    What are the reasonable expectation of a "deal" in the greater Boston and Worcester markets?  What are the monthly cash flows people seeing per door? I am trying to build out my financial modeling.

    1Reply
  • Nick Riccio
    Lender · Boston, MA · Member since 2018 · 171 posts · 137 votes
    6y

    @Jeffrey Allen This might not answer your question exactly, but cashflow tends to compress a bit the closer you get to Boston proper. Some markets outside the city, 20-25 miles away (think Lowell, Lawrence, Methuen, Haverhill) might show stronger cashflow per unit. Inside or close to the city will show less cashflow per door, but will certainly provide an incredibly strong asset. Tenant prospects will be strong, as well as appreciation. Everyone has their preferences on what works for their portfolio, but if you can make the numbers work in/near Boston, I think that's a no brainer for building a strong portfolio. 

    3Reply
  • Cristina Cantos
    North Andover, MA · Member since 2019 · 9 posts · 1 vote
    5y

    @Brian Lucier

    Hello Brian. I found your answer very helpful since I’m looking for a 4 family in the Gardener/Fitchburg area for cash flow and currently preapproved for a small home style loan. Would you say anything has changed since COVID? Are they still good areas despite all the job losses?

    Thank you in advance for your time!

    1Reply
  • Brian LucierPro Member
    Property Manager · Fitchburg, MA · Member since 2012 · 148 posts · 201 votes
    5y

    @Cristina Cantos

    Good morning Cristina,

    We are still in a seller's market out here west of 495. There are a lot of buyers in the Fitchburg/Gardner area so good deals go fast. One of our owners we manage properties for just cashed out 75% of their buy and hold portfolio within the last year. They had no problem selling at higher prices with the amount of buyers.

    Being said, buyers are finding it very competitive in the market. What we have seen this year are a lot of offers, all cash, waiving contingencies like inspections and deferred maintenance. Good for sellers, not so much for buyers. Yes, they get the deal with these terms, but sometimes there may be unseen or unknown factors that can put a bump in your financials when you purchase.

    As a buyer, I would still be more careful than ever. Even in these markets where cash flow is the focus, knowing the neighborhoods can make or break your deal. We have been offering market feedback to our landlords to guide purchase decisions based on what we know of the market areas. One area of town may have two deals on the market but being two streets apart can make a difference as to what type of rents and what type of renters may be attracted to that property.

    You have to know the neighborhoods when you buy, especially when deals are flying off the market at first showing. You may pay a little more the deal, but a deal on a good street will be worth it. Otherwise you are still going to pay too much and be on a street that will give you headaches and problems.

    Right now we are focused on growing the property management side of the business. A lot of landlords need help and we have been in this market going on our 20th year. We love real estate, being landlords, and the great people we get to meet and work with.

    We had our portfolio up to 60+ units for our 20 year run as investors and now only own a few of the larger buildings we kept on great streets with solid cash flow. It is enough for us to live the lifestyle we choose and much easier to maintain and manage. Hope this helps.

    1Reply
  • Eric Sullivan
    Developer · Salem, MA · Member since 2018 · 83 posts · 68 votes
    5y
    @Angie Briggs: Congratulations on your Salem purchase. I have about 28 units in development in Salem and we just broke into the newton market with a few purchases. If you ever want to connect and chat about the northshore or specifically Salem happy to do so! I think what you should do with your current 3 family depends on your goals. If passive income is the goal then hold, you could possibly refi to pull some cash out and deploy it into other deals. If you have non W2 income you could cost seg and use that saved capital you would have otherwise paid to the government as way to invest in new deals also. Time value of money is always something to think about. If you do plan to exit the property I would suggest doing a condo conversion just because your returns would be higher. But if you plan to try to 1031 and defer capital gains you wouldn't be able to do so if you decide to go the condo route. Again happy to connect and talk strategies if you decide on a path but there are always pros and cons of each and I always say decide on your long term goals and work backwards from there (strategic planning). 
    0Reply
  • Steve TsePro Member
    Member since 2021 · 102 posts · 16 votes
    5y

    Hi Angel, I am new to RE investing, but was thinking about multi family in Worcester. Is that a good city to invest ?

    0Reply
  • David A Cordeiro
    Investor · Member since 2020 · 2 posts · 2 votes
    5y
    @ Daniel
    Fall River. Low barrier to entry and developing city with the commuter
    rail coming and the Amazon facility being built, as well as other recent developments like the south coast shopping center and so on. This has potential to be a big boost for the city and the community revitalizing it in so many ways - a real up and comer. Good time to get in before it really takes off.


    0Reply
  • Alicia S.
    Fort Lauderdale, FL · Member since 2018 · 12 posts · 2 votes
    4y

    Anyone here investing in the towns around Pittsfield (Berkshires) for str? I’m an investor living in Florida and Would love to connect! 

    1Reply
  • Pablo Ottenwalder Jr.
    Flipper/Rehabber · Springfield, MA · Member since 2017 · 106 posts · 51 votes
    4y

    Hi @Alicia S. im also from south Florida but now live in western mass and curious to see how STR are doing in the Pittsfield area. I know LTR in Chicopee, West Springfield, and Agawam are good moves.

    0Reply
  • Jimmy Gonzalez
    Member since 2020 · 11 posts · 2 votes
    4y
    Quote from @Alicia S.:

    Anyone here investing in the towns around Pittsfield (Berkshires) for str? I’m an investor living in Florida and Would love to connect! 

    Hey Alicia, 

    I’m about to closed on property near Pittsfield and also looking for others to connect with.

    0Reply
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