Accredited Investor? We Have a Deal Available Right Now! Click Here to Schedule a Call and Get Full Access

How to Finance a Boston Multifamily Investment Pro…

Investing in multi-family properties in Boston is a great way to build long-term wealth and reach financial freedom. These properties have two or more units, which are rented out to tenants, making them an attractive investment option as they provide multiple streams of rental income. In Boston, demand for apartments is consistently outpacing supply. The real-time vacancy rate in Boston is currently right at 0.51%- and has maintained itself under 0.65% throughout 2023. This means over 99% of all rental properties are currently occupied! Thanks to its strong economy, growing population, and high demand for rental properties- Boston is a great location for real estate investors to consider.

Financing such a venture is an essential step if you’re thinking about buying a multi-family home in Boston. In this article, we’ll go through the different financing alternatives that are out there, the requirements for financing approval, and advice for financing a multi-family building in Boston.

Financing Options

Investors have a variety of alternatives for financing Boston multi-family properties, including conventional mortgage loans, portfolio loans, FHA loans, hard money loans, and commercial loans. For first-time investors with solid credit and a reliable income, conventional mortgage loans are a popular choice. If your situation isn’t as straightforward, there are other options for you.

Portfolio Loans

For investors with multiple investment properties in their portfolio already, portfolio loans can be a great choice. Often, seasoned investors do not meet the strict criteria to obtain a traditional mortgage loan. A portfolio loan is not sold to government-sponsored entities such as Fannie Mae or Freddie Mac. Instead, the lender keeps the loan in their own portfolio and assumes the risk of the loan. A portfolio loan has the advantage of giving the lender more latitude in terms of their underwriting standards. This means they can take into account aspects other…

Source link

Related Articles