This week at Boston REIA's monthly meeting we will be discussing Where and How to Buy "C" Class Multifamily Apartments markets in Massachusetts. These are specific strategies you must be aware of you invest in your local areas.

This coming Thursday, March 3rd from 7 pm to 9 pm.  Register HERE

Why we focus on cash flow first

Lack of cash will kill a business before lack of profit. It was this strong motivating factor that drove us into real estate markets where cash flow was the leading metric. There are all sorts of different investment metrics people use to measure the success of a real estate investment; CAP rate, Return on Investment (ROI), cash on cash return, Internal Rate of Return (IRR), etc. 

In the beginning, we didn't know exactly what the best metric was to follow so we followed what we knew would drive us towards success, cash. Seeking high cash flow naturally drove us towards the C-class, or emerging, markets. C-Class real estate communities tend to have more distressed real estate. If you’re willing to put in the work on a challenged property, your per unit acquisition cost can be drastically lower compared to a more established neighborhood.

 A lower price per unit purchase can lead to a higher monthly ROI when you compare dollar for dollar. East Boston, Massachusetts routinely sees apartments trade above $400,000 per unit with an achievable rent of around $3,500 a month. 

As savvy investors in Western Massachusetts, we’re achieving a renovated cost of $85,000-100,000 per apartment with an attainable rent of $1,250-1,450 a month. That multiplier is what made us shift operations into select markets just 90 minutes west of Boston. 

Register HERE



See you Thursday at 7 pm

Boston Real Estate Investors Association