24 yo , real estate purchase

[inishowen]

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Find a multi in an area that is in demand with the 25-35 yr old renter (Somerville, for example).



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Somerville/Boston Multifamily seem to run 600k plus, little out of my price range....I'm thinking the danvers area a decent two family runs 400k or so, just don't know what kind of tenants to expect there, or the demand.

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You're right about the current average pricing but if you put in the time you'll find a 2 family in the low 5's, high 4's. Belmont, for instance, is primarily a single family town, affluent, but some of the older stock 2's are priced in the low 5 range currently. Downside is it is not nearly the rental market as Somerville or Cambridge, how about Watertown? If it was easy eveybody'd be doing it. I'd much rather pay in the 5's for a property that when an apt comes available there's a long line of potential tenants vs pay in the mid 3's in an outlying area that goes vacant for a couple of months between tenants.

My theory is that once the glut of multis on the market hits critical mass, sellers might start to cut their prices to get a sale, then the next guy undercuts that price and so on. Kind of like a snowball running downhill...but that's the best case scenario for me.

For now, I'd suggest you sign up on a realtors website for automatic emails of listings in the areas you're interested in. It's important to find a site that offers you complete access to MLS, not just that realtors listings. Learn the market you're interested in so that when a deal comes up you will recognize it.