East Cambridge and North Cambridge are the best value buys. Draw for East Cambridge is proximity to Kendall, MIT and MGH. Draw for North Cambridge is Alewife and Davis plus easy access to Rt 2.
I have a non-MLS 3-Fam for sale in North Cambridge. 5% cap with current condition/rates. With the right amount of work to each unit could very easily improve to a 7% Cap with the 2014-2015 leases.
Here is everything on the market in Cambridge:
Territory Real Estate
Massachusetts Destination for Home Buyer's
617 848 5407 ext 704
Section of Cambridge Sales in 6 months Inventory Average Sale Price last 6 months
Agassiz 8 1 $907,375
Avon Hill 11 2 $1,276,363
Cambridge Highlands 0 0
Cambridgeport 3 23 $694,400
Central Square 8 0 $576,362
Coolidge Hill 1 1 $1,370,000
East Cambridge 75 10 $518,832
Harvard Square 21 12 $1,500,785
Inman Square 13 3 $499,377
Kendall Square 8 0 $710,875
Mid Cambridge 27 5 $778,111
North Cambridge 18 4 $560,676
Porter Square 9 0 $581,389
Riverside 13 1 $719,000
Strawberry Hill 2 2 $758,250
West Cambridge 31 6 $1,348,867
Most of Cambridge can be considered a good investment area but I think you need to define what your investment strategy is and then you can tailor your search to those areas that match what you are looking for in a tenant and building. Are you looking for a multi-family or condos. if condos large associations or small ... There are so many options and questions to find the right fit.
Then there is budget ..
Are you working with a local Realtor to help you ?
Investing nearby to the universities is a great idea- which happens to be around porter and Harvard sq. many people like to be near central sq as well as its close o many tech companies.
My father owns 140 rental units and I run his business and work in sales; would be happy to help!