Boston rental properties are very lucrative investments for local commercial real estate investors. However, not all properties are the same, and there are a few things you should keep in mind before purchasing Boston rental properties.
Boston Rental Properties Are All About Location
The old axiom of “Location! Location! Location!” comes into play heavily with Boston rental properties. As a property investor, you have to decide who your tenants will be, and how much time you are willing to put in managing those properties. Fortunately, Boston rental properties are available for all audiences. Students are always looking for off campus housing. Boston residents are on the lookout for places that provide a convenient location in proximity to their jobs. Other people like having access to everything the city has to offer. Location also helps to determine the rent you can charge, and any amenities you want to include to make your properties more attractive than others in the area.
Boston Rental Properties Usually Need Some Work
Finding new construction in Boston is a rarity. Most Boston rental properties are a bit older, and therefore, need come renovation work to bring them up to code. Before purchasing any property, you absolutely need to have a third party inspector check out the place. Inspections will give you an idea of what structural work needs to be done, which also prevents any unexpected surprises one you start getting your hands dirty. Inspections also let you know what you can and cannot do in the way of renovations, so you don’t violate city codes.
All Of This Comes Down To Your Budget
When looking at Boston rental properties, you need a good budget, and you should not go beyond it. Avoid bidding wars, because the more you spend on the initial investment, the less money you will have for renovations and cosmetic touches. Having the right funding sources can keep closings, renovations, and construction on track, so your property can start generating revenue as quickly as possible.
Financing Boston Rental Properties
When purchasing Boston rental properties, commercial real estate investors need a reliable and efficient financing partner. With the fast pace of the commercial real estate market in Boston, waiting on traditional lending channels can cause opportunities to be missed. At Clipper Commercial Capital, we offer a wide range of lending vehicles for commercial real estate transactions in Boston, such as conventional loans, bridge loans, mezzanine financing, and more. Contact our offices today to learn more.