If you’re a first-time home buyer fortunate enough to have some capital to put down, purchasing a multi-family home in Boston could open all kinds of doors for you! A multifamily property (or multi-dwelling unit) is defined as a residential building with two or more units under one roof or several buildings in one complex. Duplexes, townhouses, apartment complexes, and some types of condominiums are all examples of multifamily properties.
The Boston real estate market, overall, continues to be robust- with renters in various multi-dwelling units staying put longer and renewing their leases at higher rates than in the past few years. With a ready down payment and the right mortgage, you can potentially purchase a multifamily property as easily as if you were buying a single-family home. Investing in a multifamily property in Boston can provide you and your family with a comfortable place to live, a financially lucrative rental business, and passive income for years to come.
Your renters will help you cashflow your investment and offset your bills while you learn the “ins and outs” of being a landlord. So, should your first Boston real estate purchase be a multifamily home? Here are a few things to consider:
What is your goal if you’re a first-time home buyer considering investing in a multifamily home in Boston? Will this be a supplement to your income or a career? What level of time and commitment are you able and willing to put into your investment? Is this your retirement plan? There is much to consider.
A well-thought-out investment plan will give you motivation and peace of mind as you work through what could be a life-changing purchase for you and your family. Many first-time Boston real estate investors trust the BRRRR method of investing. This stands for Buy, Rehab, Rent, Refinance, and Repeat. The goal of this method is to build a strong real estate investment portfolio consisting of multiple properties over an extended period.