Purchasing a multi-family home in Boston is a popular investment choice for both seasoned and new investors. Given the strong and steady demand for rental housing, and the fact that home values in Greater Boston have appreciated by over 90% since May 2012, it’s easy to see why.
Whether you plan to live in the property or rent out all of the units, it’s important to know how to evaluate a multi-family home in Boston before submitting an offer. There are a few things you should have already settled on with the help of mortgage and real estate professionals; primarily, how much you can afford and where you want to buy. It’s important to be open to different locations so you can compare prices and mortgage rates. A few, select programs will offer lower interest rates for those looking to buy in a specific neighborhood, and it can even vary street by street.
So, how do you evaluate a multi-family home in Boston?
Analyze the Hyper-Local Market
When you’re interested in a specific multi-family home in Boston, it’s important to analyze the hyper-local market. It’s fundamental for the long-term success of your investment. That means you need to research the historical stability of the specific neighborhood’s rental prices, the demand for housing, and a host of other factors. In fact, your real estate agent should be providing you with this information so you can make an informed decision. There is a large amount of real-time, by-neighborhood data available on the Boston Pads Real Estate Portal. There are nuances to each Greater Boston submarket that can make a big impact on the success of your investment. It is worth noting, no investment is without risk, but understanding the long-term stability of a rental market can help you mitigate this issue.
You should also search for areas that are on the upswing, meaning they’re becoming more popular also known as emerging markets. Look in parts of the city that are currently attracting the most investments….