Tag Archives: cap rate

Exclusive New Listing: 141 Arlington Street #4 in Bay Village

Alisa Peterson and I are proud to announce our new listing at 141 Arlington Street #4, a condo in Bay Village, the neighborhood between the South End and Back Bay. This property and its ideal location would make a perfect fit for a first home, an investment property, or a pied-à-terre. The home is a turnkey possibility as the owner will consider selling as a furnished condo.

141 Arlington Street condo for saleThe sunny one bedroom condo in Bay Village was gut renovated in 2003 when the building was converted to condos. And 141 Arlington Street #4 was built to maximize space. The condo is west facing with unblocked afternoon light through three large windows. Hardwood floors are found throughout the condo and ample storage exists in both the closet and cabinetry. The building features professional management, common laundry, and extra storage private to the unit.

As far as an investment property the condo offers both a cap rate over 5% and a positive cash flow. Combined with an area with impressive historical appreciation rates, 141 Arlington Street #4 is positioned as a excellent investment property.

The Bay Village neighborhood is a convenient location with access to public transportation options such as the Green Line at Arlington Station and the Commuter and Orange Lines at Back Bay Station. Entrance and exit ramps to I-93 and the Mass Pike (I-90) are also nearby. And it is an easy walk to Back Bay, the South End, the Theater District, and Midtown, and Beacon Hill.

Contact us with any questions or to schedule a showing of the condo at 141 Arlington Street #4. Or click below to subscribe to our newsletter for email alerts of new listings.

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Posted in Boston Property, Condo, First Home, Investment Property, Property for Sale, Rental Property | Tagged , , , , , , , , , , , , , | Leave a comment

Investment Property: Where to Start

Buying Investment PropertyOne of the biggest misconceptions I’ve heard from clients who are interested in buying investment property, is they are going to make livable income from their investment right away. More people have the desire to take advantage of the low mortgage rates and feel buying investment property is a safer investment than buying stocks. This is can be true, however, investing in real estate should be thought of as a long term commitment and must be done wisely.

Depending on what type of property you invest in you may be able to start a steady cash flow, but when you buy investment property, you should think of it as a way to build wealth not get rich quick.

If you buy an investment property in an established neighborhood, this would be considered a low risk investment. In Boston an example would be Back Bay or Beacon Hill. A possible drawback would be the prices would be higher to buy an investment property. However, the positive side is in Boston, where the rents are only going up, the tenant’s rent would cover most is not all of your operating costs, which include mortgage, condo fees, maintenance, and taxes. Little to nothing will be left over for shopping, but after your mortgage is paid off (by someone else), the investment property is now worth a lot more than you originally paid. The goal in these established areas is a safe investment with appreciation and key metric is appreciation rate.

If you buy an investment property in an area that doesn’t have the demand as the established neighborhoods, the risk is higher. In Boston an example could be areas of Roxbury or areas of Dorchester. The drawback would be that you wouldn’t be able to charge as high for rent but the buy in would be less and the money you do collect from rent would more than cover your mortgage and leave some extra cash on hand. Your investment property may not be worth much more than you paid for but the capital of your mortgage would be paid off quicker and you would be able to generate a profit quicker. The goal in riskier areas that do not offer the same appreciation rate as the most established areas is cash flow and the key metric in determining cash flow potential is cap rate (or capitalization rate if you aren’t into the whole brevity thing).

Buying either type of investment property should not be rushed into. Once you buy a property, you are still responsible for maintaining it. If your only experience with how to be a landlord comes from The Ropers on reruns of Three’s Company, we can help. For more information about buying investment property, contact the Realtors of Matthew and Alisa Group Real Estate.

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Posted in Buy Property, Investment Property, Real Estate Tips, Rental Property | Tagged , , , , , , , , , , , , | Leave a comment