Boston Common - Niche Media - A side of Boston that's anything but common.
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POWER BROKERS Dailey is listing this multifamily rental in Wellesley for $4,000 per month. have other units to help pay the mortgage. But inventory is also low. During the height of the real estate market, many multifamily homes were purchased and converted to condos. Today, when a multifamily home comes on the market, it sells quickly. ES: Investors are looking for options other than the stock market, and with interest rates so low, a multifamily can be a sound investment. We're seeing more owner/occupant buyers, meaning Shabshelowitz recently sold this someone buys the house to live in it and rents out multifamily home Eric Shabshelowitz the other units. In some Boston neighborhoods, in South Boston. and Melissa Dailey the rent in a multifamily property will cover most, if not all, of the mortgage, utilities, etc. BC: What are the downsides to buying a multifamily home? MD: You're going to have less privacy. You have to be comfortable with the fact that you're going to have other people living in your home. MULTIFAMILY HOMES ARE HOT IN JUST ES: You have to be prepared to be a landlord. If a boiler breaks or there's a leaky bathroom, your tenants are going to call you and expect you to fix it. ABOUT EVERY NEIGHBORHOOD AND SUBURB It's a big commitment. You should go into it knowing exactly how much OF BOSTON. BY BROOKE LEA FOSTER work it actually is to manage units, or speak with a property management company about hiring them to manage the property for you. ultifamily properties are so in demand right now that open houses BC: How will you know if a multifamily property is a good investment? have lines around the block and listings in some neighborhoods are ES: You have to find out what the rent roll is (and potentially could be), selling only days after coming on the market—and fetching a price what the expenses are, how much money it will take to renovate the space higher than asking. We asked Melissa Dailey, a vice president with Coldwell to make it attractive to renters. Banker Residential Brokerage in Wellesley, and Eric Shabshelowitz, a bro- MD: Think about big-ticket items: Are you going to need new windows, a ker with Cabot & Company in Back Bay, to tell us why multiunit housing is roof, or heating system? If you make a savvy investment, your rent should cover your entire mortgage. so popular right now, and how to make a sound investment of your own. BC: What neighborhoods have the highest inventory of multifamily homes? Boston Common: What counts as a multifamily property? Melissa Dailey: It's any building with multiple units—a large building, or ES: As soon as a multifamily property becomes available in Back Bay, South End, or Beacon Hill, there are multiple offers. The sale price is often above even a classic suburban house with a unit upstairs and one downstairs. Eric Shabshelowitz: There are many different types of multifamily asking. But we're seeing some of the best buys in Cambridge, Somerville, homes. It can be a two-family in a historic row house in the South End or a and South Boston. People are getting priced out of the multifamily market Victorian in Somerville that's been broken into five or six units. It means downtown, and prices for multiunit homes are much lower in those neighborhoods, so demand is high. Melissa Dailey, Coldwell Banker Residential you're buying a home that's also going to make you money, in theory. Brokerage, Wellesley, 617-699-3922; newenglandmoves.com. Eric Shabshelowitz, BC: Why are they so attractive to investors and home buyers right now? MD: Rent has been increasing in and around Boston, so it makes sense to Cabot & Company, 213 Newbury St., 617-894-2138; cabotandcompany.com BC M 124 PHOTOGRAPHY BY KEN RICHARDSON (BROKERS), ERIC SHABSHELOWITZ (SOUTH BOSTON HOME) room for more BOSTONCOMMON-MAGAZINE.COM 124_BC_HP_PowerBrokers_Spring13.indd 124 2/11/13 4:15 PM