What are positive cash flow areas in Massachusetts?

Asked by Max Kravets, Back Bay, MA Mon Jul 1, 2013

When you look at investment opportunities around Boston in single families, condos or 2-4 family properties it is difficult to find any positive cash flow. Prices and interest rates are going up. What would you consider are good areas for Real Estate investment in Massachusetts?

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Gary Dwyer, Agent, Boston, MA
Mon Jul 1, 2013
I would challenge you to look at what your objective is in buying an investment property.

If it is "cash-flow" it will depend upon how much money you are going to be putting down (generally you need to put down 25-30% before you start to approach cash flow on a monthly basis), but it also depends upon the property you are buying. If it is in poor condition, you may be putting hundreds or thousands of dollars a month to keep it in habitable condition. You also need to factor in issues that effect your rental income such as vacancies and potential for non-payment of rent, as well as expenses such as maintenance, insurance or if you are buying a condo, special assessments and increases in common area charges.

Investment properties offer three very important benefits: cash-flow, future appreciation and tax benefits. Savvy investors buy properties where they will get all three types of benefits over time.
1 vote
CH Naamad, Agent, Boston, MA
Mon Jul 1, 2013
For muti-families now, the best deals are going to be in JP, Sommerville, and parts of Cambridge.
condos, I d recommend hot areas where rents are very high.
I am working with a client now where we are buying a small 2 bed condo in the South End for around 500k, and rents will be around 3k per month: a good cash flow.
Kind regards,
1 vote
Max Kravets, Agent, Back Bay, MA
Mon Jul 1, 2013
Thanks for those who answered.
Just wanted to clarify a little and narrow the discussion to a more specific situation.
Investor has about 300K of equity available. The goal is
1. To buy a Condo or another residential investment property with Equity Line as a cash buyer and then refinance shortly after the purchase to fix interest.
2. For Positive cash flow - assumption is: no money down (just equity) and about 4.5% 30 year fixed rate
3. The area must have a good appreciation potential, good demand(easy to rent) and quality tenants
I am not looking for specific properties as an answer. The question is - what market do you think is most appropriate within these constraints.
0 votes
Rafael Herna…, Agent, Roslindale, MA
Mon Jul 1, 2013
There are many areas that fit what you are looking for. What exactly are you looking for return on investment? Usually properties close to schools and public transportation give out the best returns but you need to ask yourself what is it exactly that you want? Commercial? Residential? Mix use. Five me a call or email me so we can discuss different options.
0 votes
John Yemma, Agent, Brookline, MA
Mon Jul 1, 2013
Hi Maksim--
I locate properties with positive cash flow ( after 75% LTV financing) on a daily basis. I'd be happy to help you on your search.
John Yemma
508.843.0085 direct
0 votes
John, i would love to hear from you about those positive cash flow properties you mentioned...

Please let me know,

Flag Fri Jan 9, 2015
Tim Moore, Agent, Kitty Hawk, NC
Mon Jul 1, 2013
I sell here in an investor rich oceanfront resort area. I get people asking me if there are cash positive properties available all the time. My favorite answer is, "If I could find one I would have already bought it". The real answer is that there are a few, but very darn few and they can be really expensive. Investors don't just look for cash positive properties, they look for ones that make a good return but that look to be going up in value in the next 5-10 years and that is where investors make their money buying now and selling for much more later. Looking for positive cash flows is like hunting unicorn.
0 votes
I think Cash Flow and Appreciation can be lumped together or looked at as 2 animals. For instance: I have cash flowing properties that turn an average of $800.00 each per month that are steady, however probably wont appreciate much unless I hold for at least 15-20 years. These are (lets say) like Government Bonds that yield steady $$. They their are the appreciation only that break even or negatively cash flow on a monthly basis (the aggressive mutual fund or individual stocks) in which the cash flow only properties take up the slack for the monthly loss. So I think its important to build first with cash flow to then fuel the more expensive properties that will most likely pan out later. But if they don't, you are not foreclosing!

My 2 Cents-M.R.-C11 Properties, LLC
Flag Sun Jan 18, 2015
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