Cash Flowing Multi-Family Properties in Boston

[Eddie Fleckenstein]

Hi Everyone! 

Im looking to purchase a multi-family property in the Boston area. This is a first time purchase for myself and my significant other. It will be as a house-hack to stop paying rent and to begin a real estate investment portfolio. The plan is to live in the property for at least a year, then repeat the process by purchasing a new multi-family property, move into the new property, with the first property cash flowing once its fully rented and no longer owner occupied. 

Boston is obviously a very expensive market and when I run numbers on properties seems as though even getting to the 1% rule is hard to do. Does anyone investing in multi-families in Boston have advice on what you look for when purchasing multi-families that cash flow? 

[Jonathan Bombaci]

@Eddie Fleckenstein we help people househack in greater Boston all the time. Based on the general market what we find is When you're living in the property you'll need to be paying yourself rent, but it'll be less than "market value". When you move out of the property it will have to cashflow. We have done this for clients in Dorchester, South Boston, Waltham, Woburn, Everett, Revere, Lynn, Quincy, Lowell, Lawrence, Nashua, Manchester, Worcester, Clinton, Fitchburg, Leominster, Taunton, and many many more markets in the last 12 months. Most of them even came from the DREADED MLS….

Checkout our company’s profile on BP to see many of the multis we’ve helped people buy in MA recently. We won’t even show clients properties until they run the numbers on them first. This is investing not gambling. Appreciation is great, but CASHFLOW IS KING!

There are plenty of Househack’s within 20-45mins of Boston that make sense based on the logic I described above but you need to be running the numbers, everyday, to find them. The BP rental calculator is great for this. Rules of thumb are just that, run the numbers that’s where you will start to see the gaps in the market. 

We also host monthly meetups under the group “Pints and Properties” in Lowell, Nashua, and soon to be Worcester. They’re posted on the events tabs here in BP. They’re free and open to the public if you get a chance come meet some local Househacker’s that are doing just this in many of these markets. 

I hope this helps,

Best,

Jon