So you are thinking about getting into the multifamily market in Boston as an investor and have some questions. We sat down with our Multifamily team of experts to ask them what tips they would give to someone looking to enter this market for the first time. Bobby Quinn, who coordinated over $65 Million in multifamily sales last year, gave us these three tips:
1. Understand the importance of being close to transit
The proximity to transit (the “T”) is an important consideration for renters as they look for properties. Especially in a town that is so driven by education and students, this can make a big impact on the rents tenants are willing to pay for your property. You should consider this as you look at potential properties.
2. Decide if you want to take students
To go along with the idea behind transportation being important, it is an important decision as a property owner if you want to take students or not in your property. Obviously, this is a huge market in Boston but can bring with it some additional concerns and items that need addressed. Decide going in if this is something you want to take on.
3. Do your research on different area CAP rates
Talk with your agent about the differences in the many neighborhoods in Boston and understand what the CAP rate is really telling you about each. Typically, the neighborhoods that people perceive as “less risky” have lower CAP rates but may offer other reasons for you to put your money in them such as capital gains deferment, tax benefits, etc. Think about the entire picture before making a purchase.
Have some questions about the Boston multifamily market? Reach out to Bobby and our team of experts today.