At Platinum Realty Group, we’re a unique company that provides local, Boston-based real estate services and property management. We work with HOAs, we help investors locate properties to add to their portfolios, and we also manage homes for owners who don’t have the time and knowledge to do it themselves.
We cover a lot of ground, and we’re always using our expertise to help people make better decisions when they’re buying, selling, or investing in real estate.
Anyone looking to invest in Boston right now needs to understand that it’s a competitive, fast-moving market. You need all the advantages you can gather, and one of those advantages is an expert management firm in the local area. We consult with private investors on choosing properties, preparing them for the market, and then earning as much as possible during the rental process.
Choosing the right neighborhood is a huge part of any successful investment strategy.
Today we’re looking specifically at neighborhoods that are ideal for investors who want to buy a single-family home. There are some great reasons to invest in multi-family properties, but your best options right now are in these established and new construction neighborhoods with single-family homes that are sure to command high rents and retain great tenants.
Why Invest in Boston Single-Family Homes?
Boston has long been an ideal place for new and experienced investors. It attracts local investors as well as out-of-state investors and even people outside of the country. Lately, it’s become even more attractive because the local economy is strong, new jobs are being created, and it’s a diverse city, a desirable place to live, and a metropolitan area that’s close to other great cities such as New York, Philadelphia, and Washington, D.C. This means there is always a strong tenant pool.
Additional reasons Boston is an attractive place to invest in rental real estate include:
- Population. Boston is one of the most populated cities on the eastern coast of the U.S. That population is not shrinking the way it is in other large cities.
- Prosperity. There’s also a lot of money in Boston. There is a huge network of higher education institutions, professional sports teams, and nearly every professional industry and sector you can imagine. Most of that revenue stays in the local market, making it a wealthy and profitable city.
- Quality of life. There are always opportunities for business, employment, education, and entertainment in Boston. People come here to learn, to work, to enjoy professional sports, and take advantage of the four-season climate.
Single-family homes are especially sought after in our market because of the space, privacy, and community they often provide to tenants. Many of these renters are families with children, which means good schools are a priority. Single-family homes in Boston will bring in high rents. They’ll be relatively easy to maintain, and investors will enjoy a strong ROI.
Target Neighborhoods for Boston Investors
There are a number of diverse and profitable rental markets throughout Boston. The best neighborhood for you as an investor will depend on your unique investment goals.
If you have not already established your investment goals and your own priorities, now is the time to do so. You don’t want to chase every opportunity that comes along. It’s better to be strategic and make sure you’re investing in single-family homes that meet your investment criteria.
Here are a couple of our favorite neighborhoods that we think are great finds.
- South Boston
South Boston has a lot of pricy condos and towering townhomes, but if you continue looking in some of the new construction neighborhoods, you’ll find great investment properties. This is becoming an especially popular neighborhood for buyers who find the prices in Boston to be rising at an uncomfortable level. There are still good deals to be found in this neighborhood. The land is being purchased by developers faster than anywhere else in the market, and there’s a good chance that investors who wait too long will find themselves priced out of this market.
South Boston is a good idea because it’s residential and has a lot of the Boston charm that people enjoy. There are diners from the 1950s still serving food early in the morning and late at night. There’s a huge St. Patrick’s Day parade every year in this neighborhood in celebration of the community’s strong Irish roots. There’s plenty of waterfront recreation, great views of the Harbor, and a ton of opportunities for dining out, exploring history and culture, and shopping. Tenants who move into South Boston have a particular experience in mind, and well-maintained homes in this neighborhood will rent for a lot. It’s a good spot for investors to look.
Somerville is a popular place for Bostonians to live, work, and invest. It’s residential and bursting with neighborhoods that have single-family rental homes that are well-maintained, nicely landscaped, and hardly looking like what most people imagine when they think of rental properties. This part of the Boston metro area is in the extreme northwest part of the region, but there’s good news for both investors and tenants. Public transportation is now widely available. The Green Line MBTA Extension Project (or GLX) is making it easier than ever for Somerville residents to commute into downtown Boston.
With a single-family investment property in Somerville, investors will attract tenants who are looking for a high quality of life, more space than city living can provide, and an easy route into Boston when they want to enjoy the dining, culture, and athletic events available there. Somerville is close to Tufts University and known for good schools and excellent shopping.
Additional Boston Neighborhoods for Investors to Consider
Most real estate experts agree that neighborhoods like Somerville and South Boston offer a lot of promise for investors looking to earn some outstanding long-term ROI on single-family homes. We’ve also heard some people talk about Quincy, which is an interesting place to look but maybe tight when it comes to inventory.
Additional neighborhoods in Boston that provide outstanding opportunities for investors can also be found. Here’s a quick snapshot of where to look:
Real estate investors cannot go wrong with buying Allston rental properties. This section of Boston is known for well-maintained rental properties. It’s a popular place for students to find housing when they’re attending school in Boston, and a single-family home here will attract a diverse pool of potential tenants. There’s a lot of energy in this neighborhood, and that’s likely due to the heavy student presence. It also means that great coffee shops, restaurants, bars, and nightlife can be found throughout the area. Get to know this neighborhood before you buy here. You’ll want to start your lease agreements around September, to make it easier for your student renters to move in.
Like Allston, Brighton is a popular neighborhood for college students, especially those attending Boston College. However, the single-family homes here are also likely to attract young families and professionals. You might even find some retirees looking for a neighborhood with great shopping and dining. There’s been a lot of new development here, which makes it an attractive spot for investors. Rental prices have also risen considerably over the last few years, making it a profitable spot to buy when you’re looking to grow your investment portfolio.
- Mission Hill
One of Boston’s most pleasant residential neighborhoods, Mission Hill can be a great opportunity for investors who want single-family homes and highly qualified tenants. It’s centrally located, making every spot in Boston easily accessible. It’s also close to Fenway Park and some of the best medical centers and hospitals in the city. Condos are moving in, but the brownstones are lovely and plenty of historic homes can still be found throughout the green and leafy neighborhoods. You may pay a little more for a property here, but the rents and the tenant retention will be worth the investment.
- Hyde Park
Combine the best elements of urban and suburban living, and you have Hyde Park in Boston’s far south region. It’s diverse and affordable for investors looking for a deal. Neighborhoods here feature single-family homes, libraries, YMCAs, and parks. There are still some lingering warehouses and industrial buildings from the area’s history as a commercial center, but the new development mostly centers on shopping and public transportation. It provides a great opportunity for investors and the tenants they’ll be renting to.
It’s hard to say what the best neighborhood is for you. Each investor has their own best neighborhood to invest in, depending on finances, investment goals, and risk tolerance. Boston offers a number of opportunities, and that’s what’s most exciting about investing in Boston now. Remember, it’s helpful to think like a tenant. Tenants will want a home that’s in good condition, with modern features and amenities. They’ll want some outdoor space, even if it’s a small patio. They’ll also want a great neighborhood. When you’re ready to invest in Boston rental real estate, please contact us at Platinum Realty Group.