Any MA investors here?

Question

Hi everyone, I'm new here, but not really. While this is my first post, I've been reading and soaking up info here for well over a year now. I think I've learned enough that I'm finally ready to take the plunge. I'm 25 years old and my father has offered to float me the funds to get started.

I've decided that I would to get into rental real estate, as the cash flow is very appealing to me. However, I live about 5 minutes from Fenway Park in Boston, so as you can imagine real estate where I live is through the roof, and deals are hard to find. I've started venturing out towards the Worcester area (central MA), but I'm still having a hard time finding numbers that work.

Most of the triple deckers in the worcester area are beat up to the point that the more or less need to be gutted. I did have an offer in on one that I found, but the bank decided that my offer was far too low. The possibility still exists that I hear back from them with a better offer, but I'm not holding my breath.

So my question for the MA investors out there, is where do you invest?!?!? Should I be going out further west that Worcester? Should I consider southern NH (Nashua/Salem)?

Any advice would be much appreciated!

Jay

Dan O. · Answer

Hey folks
Worcester is my bet, beats all the major / section 8 cities.
Had more appreciation than brockton and when the condo coversions were there people bought.....
Has to be the right area.
I watched the vernon street area boom with conversions, watched the city try to pull itself out of the dolerums.
Will happen again, hopefully I'll have a few..
Still like worcester for my money

Jay Hassey · Answer

but in some areas of Worcester you won't be able to rent for more than 700ish.

Robert Granara · Answer

justin, i looked in worcester about 5 years ago...i think you'll be surprised...there are a ton of huge 3 deckers out there in good shape, i remember a few w/ old natural beautiful woodwork

...i almost bought a couple...i see many worcester 3 deckers for around 100K...rent them for 900 each...i didnt do the #'s but that should net you good cash flow

Justin Butler · Answer

I live in Worcester, MA and have been interested in the buy and hold strategy for about a year now.  Jay is right in saying that most triple-deckers here in Worcester are in rough shape, but a handful look good to cash flow.

The multifamily market is plummeting ten-fold compared to sfh around these neck of the woods.  Looks like a good time to get into the real estate game.

Robert Granara · Answer

hey guys...been waiting to hear some from local guys...im in reading, grew up in medford...

ive bought 3 three deckers this yr in lynn...and will be buying more if i can find a good hard money lender

...i go w/ suction 8...i believe thats the way to go in the lynn, lawrence, lowell and other tough areas...for me its all about cash flow...benn buying 3 deckers for about 200K, not overly distressed but bank owned and put 10K into each unit and rent for $1200-$1500...

Jay Hassey · Answer

I completely forgot to factor in work. I work in Boston, and don't get home to Brookline until a little before 6. I'd never make it up to Chelmsford or Peabody in rush hour traffic by 7.

Dave Kennedy · Answer

Maybe some day you won't need to factor work in!
            
            Wouldn't that be nice!
            
            Its tough for me as well. I'd barely be able to get out by 7.
            
            Most of my days are 8 am - 6/6:30 pm. I say boo to the 10 hr day! Not to mention an hour commute both ways.
            
            Its really 12 hrs of my day eaten up by my job. Thats an avearge day....most seem to be higher then avearge(if thats possible...haha).

Dave Kennedy · Answer

Thanks Mark,

The two I'd be open to go, that work with my schedule/location are.

New England Real Estate Investors Association NEREIA

When: 1st Wednesday of each month, 7:00pm
Where: Best Western, Chelmsford

Or

Massachusetts Real Estate Investors Association MREIA

When: Last Tuesday of each month, 7:00pm
Where: Peabody Marriott Hotel, Peabody

Preferably the Peabody one as its on my way home from work. Chelmsford I might barely make it after work or at least be late by 10-15 mins consistantly.

Jay Hassey · Answer

Awww, Wednesdsay's aren't good for me. Figures. Eh, I guess if I plan one to go to far enough in advance, I can probably make it to one.

Dave Kennedy · Answer

Hey guys another North Shore guy on the board here.

I've been studying the market for quite a while. Just keeping my eyes and ears to all the stuff going on and off the MLS in Essex county.

I'm interested in flipping and or buying and holding for cash flow depending on the situation.

My price range is 250k and under at the moment.

I've noticed Haverhill and Methuen to be ripe in those areas not only for flips but also some multi families(that may cash flow). I'd stay out of Lowell and Lawerence at the moment, unless you are into section 8. If so that'd be the place to go for bargins. They are getting crushed by foreclosures.

We should all stay in touch.

Either of you go to a REI meeting in the area? I've been looking for one.