Massachusetts Rental Market By The Numbers
When it comes to any kind of real estate investment, you want to pick an area that will offer a high chance of success with an even higher potential profit margin. As it stands, this state has some of the best numbers that investors look for. Boasting a higher than national average income level and a very low statewide unemployment level, with areas like Plymouth County sitting at 2.7% as of September 2020, the state is a smart area for real estate investments.
Specifically, the rental market in Massachusetts is prime for starting or expanding your rental portfolio. According to Rent Café, cities like Cambridge of Middlesex County have experienced a 4% YoY growth in rental prices, with other cities like Boston and Worcester rose by 3%. Asset Based Lending are the premier option for rental loans and refinances in Massachusetts. Stop wondering how to get a loan for rental property in Massachusetts and contact us today to be approved for the most reliable rental loans MA has to offer.
Why Investors Choose Massachusetts For Their Rental Portfolio
Due to the large mix of urban and suburban living options, along with the low unemployment rate and high rental demand, the northeast stands out as a quality long term investment opportunity. With over 40% of the state renting their property and low housing inventory, rent prices are being continuously pushed upward. This state currently has a median monthly rent that is higher than the national average. Normally this could cause a larger vacancy rate and make it a more risky rental opportunity, however the state has plenty of areas that are opening up. Attom Data is reporting Middlesex County just experienced a big improvement in their affordability index, rising over 14% during 2019 and enabling a new wave of potential renters for the area.
The low vacancy rates in Massachusetts rental property is another indicator of the area being a strong investment. Being able to consistently secure renters and generate monthly income helps investors become cash flow positive quickly, and they can use those funds to start securing their next property. For example, Cambridge rental property in Middlesex County is sitting at a 3.5% vacancy rate with a high YoY growth rate, making it a top choice for adding property to your rental portfolio.
BRRRR Investing In Massachusetts
Rental property makes for nice supplemental income but refinancing rental property can help quickly fund your next rental property, growing your rental portfolio exponentially and establishing long term wealth. This method of investing is known as the BRRRR method and has become very popular in recent years. The acronym stands for buy, rehab, rent, refinance, repeat. By buying the property and renovating it to increase its value, you can already charge a higher rent and come closer to your financial goal. Once you’re renting, you can refinance the property and take those newly available funds to invest in your next rental property, thus repeating the process and growing your rental portfolio much faster than before. The BRRRR strategy works best in areas with high average income and low vacancy rates, making Massachusetts a great choice.
Asset Based Lending are the premier hard money lender in Massachusetts, and our team is dedicated to funding your next successful rental property. Rental loan rates are just a fraction of our competitive underwriting, as we tailor loans specifically to your project. Whether you need maximum LTV, lowest rates, a no doc loan, or something else, ABL is ready to help you grow your real estate investment portfolio. Contact us today to experience the most reliable Massachusetts rental loans.