If you’re a first- time homebuyer, your current search may be focused more on condos and single-family homes in Boston. However, you may want to consider investing in your future and taking a look at multi-family homes in Boston for sale. With a multi-family home, you can live in one unit and rent out the other(s). Not only will it give you more options, but, for a similar purchase price, you’ll be able to lower your net monthly mortgage payment and start to build your real estate portfolio. Many successful real estate investors started this way!
Let’s take a look at the numbers: the median sale price of a condo in Boston is $747,608; that same figure is $822,008 for single family homes for sale in Boston. Splitting the difference and using those numbers as a benchmark, there are currently 18 multi- family homes for sale in Boston under $800,00– even more if you’re willing to go a little outside of the city!
Granted, being a housing provider is not easy, property management is a difficult job and there are additional maintenance costs for multi- families. That being said, most things in life that are worth it, aren’t easy and the value of Boston real estate has appreciated 91.4% in the past 10 years. While no investment is without risk, you can minimize your risk by working with leasing professionals that can provide strategic advisory so the asset’s income is producing at its highest level possible.
Now, let’s take a look at some multi- family properties in Boston, MA under $800,000:
**Disclaimer: Any figures listed in this article are estimates based on available real-time data. For a more precise evaluation based on your specific situation, down payment, mortgage product and properties you may be qualified to purchase, please speak to one of our sales professionals.
Dorchester Two- Family Home Listed at $720,000
This beautiful multi-family located on the Dorchester/Roxbury border is composed of 2 units, with 4 total bedrooms and 2 full bathrooms. The first unit boasts a large primary suite bath and additional full bathroom. Its living room and kitchen were designed with an open-concept layout, allowing all of the natural light to shine through the spacious ground floor area. Unit 2 was recently fully renovated, with a new stainless-steel kitchen and quartz counter tops, along with three bedrooms, one of which is a primary bedroom. Each unit has a deck that allows for entertainment and enjoy the four full seasons that Boston offers its residents.
In this area the average rent price for a 1-bedroom unit is $2,015, and $2,819 for a 3-bedroom unit. According to our mortgage calculator, assuming a 20% down payment and a 6.3% interest rate, your monthly mortgage payment would be around $3,925. No matter which unit you decide to rent out, that’s a significant reduction of 51.33% or more to your out-of-pocket mortgage payment.
Seller’s Representative: Jonathan Mathews, Keller Williams Realty Boston-Metro | Back Bay
Roxbury Two- Family Home Listed at $649,999
If you’re looking for a turn-key apartment that will save you the hassle of renovating, look no further. This 2-family in Roxbury offers 3 bedrooms and 2 bathrooms- beautifully finished and with all of the modern amenities that will make this property rent quickly. It is equipped with a new heating and electrical system, new paint and is fully-insulated. If the finishes weren’t enough to get these units rented fast, the location certainly is; this property is conveniently located near South Bay, Boston Medical Center, BU Med, Back Bay, and Downtown Boston! 2-bedroom apartments in Roxbury typically rent for $2,493, while 1-bedroom apartments go for $2,208. This means that this property has a potential $60,000 in annual gross rent!
According to our mortgage calculator, assuming a 20% down payment and a 6.3% interest rate, your monthly mortgage payment would be around $3,544. Using our average rental figures, if you decide to live in the 2 bedroom unit and rent out the 1 bedroom unit, you would be lowering your net monthly mortgage payment by over 60%!
Seller’s Representative: Markese Daise, Stony Brook & Lennox Realty Advisors
Dorchester- Two Attached Row Houses listed at $714,900
This building offers two, paired single-family row homes in the heart of Dorchester. Each unit is composed of 4 bedrooms, and is surrounded by classic, New England-style decks and a fenced backyard, allowing for tenants to enjoy a private, fun space outdoors with their friends and family. The central location of this property is one of its key selling points: it’s right near Uphams Corner, a historic commercial district of Dorchester, making it easy for you and future tenants to access grocery stores and shopping centers.
According to our mortgage calculator, assuming a 20% down payment and a 6.3% interest rate, your monthly mortgage payment would be around $3,544. Per the listing agent, “Both are currently rented with TAW for $5,000 per month [total].” The real-time average rent for 4-bedroom apartments in Dorchester is $3,580, however, so you could potentially cover your entire mortgage by making some upgrades and finding new tenants for one of the units!
Seller’s Representative: Doug Crane, Conway – Bridgewater
Somerville Two- Family Home Listed at $799,900
Whether you or your future tenants commute to the city by car or train, this property’s location just can’t be beat. Located in the heart of Somerville, a very in- demand city close to Boston, this 2-unit multifamily, composed of 4 bedrooms and 2 bathrooms, is located near the I-93 and the brand new green line, orange line and bus stations. Within minutes, future tenants can be in Assembly Square, one of the city’s newest and most glamorous shopping centers. This property also provides the best of both worlds by not only being in the heart of the action, but also allowing residents to enjoy some tranquility in their exclusive, fenced backyard.
The real- time average rent for 2-bedroom apartments in Somerville is $2,678. According to our mortgage calculator, assuming a 20% down payment and a 6.3% interest rate, your monthly mortgage payment would be around $4,361. If you rent one of the units for $2,678 that brings your net monthly payment down to $1,683!
Seller’s Representative: Michael Courtney, Choice Real Estate
CONCLUSION
The multi-family homes in Boston shown above are great options for first- time investors- they require minimal renovations, if any. If you’re adventurous and have extra cash, you can also consider projects requiring work beyond the cosmetic.
The brokerages powered by Boston Pads specialize in multi- family investment sales, and are part of the largest leasing team in Greater Boston. Additionally, Boston Pads features the largest collection of Boston apartments and real- time rental data in the area- so we can provide you with the most options and the most accurate data. Make your search for a multi- family property in Boston as easy as possible and contact us today! We look forward to working with you.
Aubrey Liss
Published January 12, 2023
