2% rule boston

[Patrick Kelly]

I've been looking at multifamily properties in the greater boston area and try to apply the 2% rule and it seems nearly impossible. I was listening to the interview with Darren safer and he said he uses 1% in the New York/ New Jersey market. Would something like 1.5% be better to use around boston?

[Shaun Reilly]

In and near Boston you will be lucky to find many places (Assuming you are looking on MLS or other online stuff) that will even hit 1%.

If you go more out to Lowell, Brockton, Worcester (as is 2nd tier cities that are a decent distance from Boston) you can find stuff more like 1-1.5%.

To get around 2% you are talking probably going out towards Springfield.  Might be able to hit that in places like Fall River or New Bedford.

It is of course possible to find better than average deals any place, but you aren't going to find a place that will give you anything close to 2% within 25 miles of Boston unless you hit a pretty sweet off market deal.