The Old Colony State is also an old standard for investors, showing continued investment potential year after year. Its major cities maintain high property values, with Boston averaging over $500,000. Regardless of the property types you'd like to purchase, an investment in Massachusetts is always wise, and DSCR loans make it easier than ever to begin generating rental income.
Massachusetts has a serious housing crunch, so acute that officials in Boston are offering tax incentives for developers who convert office spaces to apartments. Rental properties have a vacancy of only 2.8% statewide, making it the tightest rental market in the entire country.
With so many people seeking to live and work in Massachusetts, its economy remains strong in nearly every sector. Massachusetts' GDP grew by 4% in the second quarter of 2023, which is staggering compared to the nationwide growth of only 2.4%. The state also has a highly differentiated economy of in-demand products, including healthcare, construction, information technology, biotechnology, and financial services.
State laws around rental properties are very advantageous, which is why so many investors choose this real estate market. Massachusetts has no rent control, meaning you can charge a competitive rate without concern.
In addition, all tenants have a list of obligations that keep your property in good repair, such as paying rent on time, undertaking minor maintenance on their own, not ending their tenancy early, and accepting responsibility for damages beyond minor wear and tear. Property taxes are pretty high here, but this is more than offset by the significant earning potential.
DSCR loans in Massachusetts cover the gamut of residential rental properties, office spaces, retail buildings, restaurants, hotels, and manufacturing facilities. However, choosing your location wisely is essential, as every real estate market in the state has different pros and cons.
When selecting where to pursue DSCR loans, we encourage you to take a closer look at these cities, which have shown strong population growth, economic potential, and diverse investment property opportunities.
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The capital city of Massachusetts has always been an excellent place for investment properties. One of the major cities in New England, Boston is a significant technology, higher education, and healthcare hub, thanks to the presence of Harvard University, the Massachusetts Institute of Technology, and Tufts University in its boundaries.
The average rental property income is an astounding $3,250, while commercial spaces can generate $61.34 per square foot.
This is the fastest-growing city in Massachusetts, and it's easy to see why: With multiple universities, a highly diverse population, and a strong emphasis on innovation, Worcester is a powerhouse of economic potential. Despite having plenty of cultural attractions, it's also much cheaper than Boston, as a residential property's cash flow is around $1,950 per month.
Interestingly, there's a significant discrepancy between office and retail rents: office space rents for $24.39 per square foot, while retail space costs $17.78 per square foot. This suggests room in the real estate market for more retail activity, making it a great place for retail DSCR loans.
Aquinnah, on the island of Martha's Vineyard, focuses on luxury and leisure property types. The property values are incredibly high, with the average home worth $2,207,932; some homes sell for over $7.5 million. Still, rents are lower here than in Boston at around $2,300.
With Aquinnah, your best bet is in vacation rental property, which can provide an average of $1,198 per night.
The largest municipality on Cape Cod, Barnstable, is home to breathtaking scenery, diverse wildlife, and a friendly downtown. Vacationers flock to the region to enjoy its art galleries, small shops, and excellent food scene, ensuring steady tourist income throughout the summer.
Residential rental property provides about $3,000 per month; commercial spaces are sparse here, but they average about $20 per square foot.
Newton is renowned for being family-friendly, and housing excellent schools and educational institutions; this means that larger residential rental property is very popular with younger families. It also has a quaint and vibrant downtown with a strong need for amenities like cafes, clothing stores, and gyms.
Thanks to its residents' high average household income - an incredible $228,218 - residential rents are even higher than Boston, at $3,575, while commercial space rents for $31.54 per square foot.
Historic Marblehead was once one of the major cities for shipping and shipbuilding, but it now hosts a quiet downtown and luxury homes. Like Newton, this is a costly real estate market: the average rent across all residential property types is $3,500. As it's a relatively petite city, the commercial rental property values are lower, with average rents around $18.75 per square foot.
When you're ready to expand your real estate portfolio, you can rely on Visio Lending for a great DSCR loan with prudent loan terms, a competitive interest rate, and no personal income verification.
We operate in over 38 states and have helped thousands of investors in Massachusetts and beyond purchase properties with excellent cash flow through DSCR loans.
Contact us today to learn more about our programs and find out if a DSCR loan is right for you.
Check out some of Visio Lending's recently closed DSCR loans in Massachusetts.
Worchester, MA
Boston, MA
Springfield, MA
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Visio Lending is the nation's premier lender for buy and hold investors offering, long-term loans for SFR rental properties, including vacation rentals.