Above is a handy chart (click to enlarge) via real estate research site NeighborhoodX showing what small-time landlords in Greater Boston can make in terms of rent from $1 million in property investment.
A couple of caveats on the data, per NeighborhoodX co-founder Constantine Valhouli:
· The numbers are for gross rents, before any taxes and commissions.
· Different neighborhoods will have different losses from vacancies, just as tenants' credit will vary.
All that said, the chart is a beautiful jumping-off point for analyzing what $1 million brings in rent-wise (keeping in mind that $1M is not a lot of money in Boston-area property investment). For instance, up in Lynn, $1M would buy 8,474 square feet, which could generate $168,644 in gross rent annually, or just over $14,000 monthly. Yet, in Back Bay, perhaps not surprisingly, a million buys only 966 square feet for $39,768 in gross rent ever year, or around $3,300 a month—which is, of course, just about what a 2-BR in the neighborhood goes for these days.
· Landlording! [NeighborhoodX]
· Our Rent Check archive [Curbed Boston]