Brockton, MA’s large stock of 3 unit multifamily houses, typically triple deckers, have attractive gross rent multipliers. Data in this post is based on information provided to and compiled by MLS Property Information Network, Inc.
First off, Brockton’s average triple decker sale price in 2010 was $167,869 which is significantly down from the 2005 average sale price of $408,289. Sales have similarly fallen from 159 in 2004 to 94 in 2010.
For investors, we need to understand cap rates but since those figures are virtually non-existent for small investments on this level, we look at rents and the gross rent multiplier. Average rents rose steadily from 1998 until they hit $1,058 per unit per month in 2007. Average rents were $1,010 per unit per month in 2010.
Average sale prices outpaced average rents so we saw a rise in the gross rent multiplier until it peaked at 10.9 in 2005. The average rent multiplier was at 4.6 for 2010. That means that investors will collect rent equivalent to what they paid for a triple decker in 4.6 years!
- Are you an investor looking for a 2 unit multifamily house? 92 of those sold in 2010.
- Are you an investor looking for a 4 unit multifamily house? 7 of those sold in 2010 and sales of 4 unit houses have often been in the double digits.
- Are you an investor looking for an apartment complex? Sales have taken place with complexes with 5, 6, 10, 12, and 18 units in 2010 in MLS alone. CoStar & Loopnet tend to have a larger selection of apartment complexes.
Contact me today to understand the multifamily market and be updated with multifamily properties for sale.