Investing in Biddeford/Saco Maine?

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Investing in Biddeford/Saco Maine?

Robert LaRoche
Westbrook, ME · Member since 2016 · 7 posts · 3 votes

First post ever... go easy on me! 

I live in southern maine and Im just about ready to break the ice with a first purchase. The over all strategy/goal is buy and hold multi families. My wife and I want to ease into investing so weve decided to do that by buying a multi, living in one unit and rent out the others.  Ive been looking around at different markets in my area Ive been practicing analyzing deals so as to better educate myself in general while also trying to better understand my surrounding market. 

Heres my question... for those folks who know Maine and Southern Maine, is the Biddeford/Saco area worth seriously considering especially for the first go around? It does have a bit of a tough reputation but my wife and I are no strangers to things being rough around the edges so I dont necessarily mind a certain amount of that. As far as Southern Maine goes I feel like its in a solid location in terms of proximity to Portland and Portsmouth while also having UNE close by and the entry prices are pretty good considering what it takes to be closer to the portland area.  Am I crazy for considering and should just move on or is there something to it?

Anyone whos had experience in this area I would love to hear about it! 

Best

Robert - 

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Tammy Richards
Yarmouth, ME · Member since 2015 · 57 posts · 25 votes
9y

Hi @Robert LaRoche - 

My first live in rental was a two unit on Munjoy Hill in the early 90's.  It was the "rough neighborhood" back then (!). 

If you are going to live in the multi, you do need to visit and see if it's somewhere you and your wife want to live.  Saco is less rough, but price is better in Biddeford.  Biddeford has more heroin (thought there's drug issues everywhere), but there's an interesting edge/potential to the place.  Saco's school system is stronger. 

Be careful of buying buildings out of code compliance, Biddeford is trying to improve housing stock - a good thing, but if you purchase a building without budgeting for the potential code enforcer spotting your windows aren't egress, that could be rough.  Also, give the police department a call if you are looking at a particular neighborhood/street in either town.  The police know the streets/buildings that they are always being called to.

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  • Tammy Richards
    Yarmouth, ME · Member since 2015 · 57 posts · 25 votes
    9y

    Hi @Robert LaRoche - 

    My first live in rental was a two unit on Munjoy Hill in the early 90's.  It was the "rough neighborhood" back then (!). 

    If you are going to live in the multi, you do need to visit and see if it's somewhere you and your wife want to live.  Saco is less rough, but price is better in Biddeford.  Biddeford has more heroin (thought there's drug issues everywhere), but there's an interesting edge/potential to the place.  Saco's school system is stronger. 

    Be careful of buying buildings out of code compliance, Biddeford is trying to improve housing stock - a good thing, but if you purchase a building without budgeting for the potential code enforcer spotting your windows aren't egress, that could be rough.  Also, give the police department a call if you are looking at a particular neighborhood/street in either town.  The police know the streets/buildings that they are always being called to.

    2Reply
  • Dave Holman
    Rental Property Investor · Brunswick, ME · Member since 2016 · 65 posts · 25 votes
    9y

    I've heard a lot of interest in Saco, Biddeford, Gorham and Westbrook from investors who can't find much Portland cash flow. That said, unlike a rental you won't live in, I'd recommend studying towns and neighborhoods where you would really enjoy living and then seek deals there rather than the inverse. Even if you only plan to stay for two years, why spend two years of your life in a place you're uncomfortable or don't like when you might make just as good returns somewhere you do like? You're not crazy to do this, in fact it sounds like a very wise investment plan as long as you're comfortable being landlords to tenants that you'll see and hear most days. You'll want to screen them very carefully and pick people who you don't mind interacting with. Good luck!

    0Reply
  • Robert LaRoche
    OP
    Westbrook, ME · Member since 2016 · 7 posts · 3 votes
    9y

    Tammy and Dave, 

    Thanks so much for your responses. That was some really great, sound advice and gave me a lot to think about moving forward! 

    Best

    Robert - 

    0Reply
  • Zachary Taylor
    Flipper · Saco, ME · Member since 2016 · 3 posts · 3 votes
    9y

    Hi @Robert LaRoche

    I am from southern Maine as well and looking in the Biddo/Saco area. A few items on my radar concerning this market-

    #1 (most important) the MILLS... These spaces vary in size and price, some for low income only to higher-end prices for 2bdrm units. All fairly nice inside and come with varying amenities. The newest mill space, Mill #4 is set to open in 2017 with about 150 1 and 2 bedroom units and these look very nice. 

    #2 The quantity of other rental properties currently available. After crunching some quick numbers I've found roughly a dozen properties with decent ROI and cash flow figures but remain unsold. Many of these are listed as currently occupied but when I swing by notice majority of them are actually vacant.

    With those two items, I would tread cautiously. I am too new to real estate investing so I do not know first hand. I have ventured to look in the surrounding areas such as Wells (where have helped sell a home), Kennebunk and OOB. Look for unique features in properties to help you stand out- garage parking, lawn/green space, anything. OOB or more Oceanside Biddeford provides another option- rent to students then rent weekly to vacationers during the summer and students like that so they do not have to pay for a full year.

    Good luck! 

    -ZT

    2Reply
  • Dylan Moulton
    Biddeford, ME · Member since 2014 · 16 posts · 1 vote
    9y
    I live in Biddeford. I think it's a great area with a lot of upside. Ever since they removed the trash burning plant in downtown 10 years ago it has seen a steady increase in quality. There are also a lot of nice restaurants now.
    0Reply
  • Robert LaRoche
    OP
    Westbrook, ME · Member since 2016 · 7 posts · 3 votes
    9y

    @Zachary Taylor That was some really great insight and its very much appreciated. I have a few follow ups on your points... 

    With the mills, with a new one ready to open up and with so much space in it my assumption is that it will drive rent prices down in the short run. That being said, how do you (or anyone really) think that will affect the area in the long run? My thoughts are that its another step toward the area cleaning up more and getting nicer in general... maybe that will have some affect on appreciation? 

    In terms of the quantity of inventory, that was an exact thought I had but had yet to take that extra step like you to check things out in person. It seemed interesting that there is so much on the market there but really no where else in southern maine. Im a glass half full kindof person so I wanted to lean toward "maybe that just means opportunity?" and only after extensive due diligence. 

    Again I really appreciate your insight on the area! 

    Robert -  

    0Reply
  • Zachary Taylor
    Flipper · Saco, ME · Member since 2016 · 3 posts · 3 votes
    9y

    @Robert LaRoche:

    First off, I would like to clarify my perspective on the Mill projects- I love them! They have acted as a community defibrillator jolting great life into an otherwise sad town(s). I can see how my rhetoric seemed pessimistic, it was more of a word of caution for extended "due diligence" is required in excess to just the 2% test or a cash on cash test. 

    Now, Mil #4 hasn't even opened yet and there are already many empty units, possibly the owners are just traditional and not used to such competition, thus have fallen behind in the times. IDK

    There is a lot more to follow in construction with commercial, mix-use and more apartments too- http://www.biddefordmaine.org/vertical/sites/%7BFA... biddo master plan

    Page 59 shows Biddo's master plan, if you're familiar you will know parts of phase 1, half of phase 2,  very little of 3, and none of 4 have been executed currently. There is a lot more life to come hopefully bringing even more restaurants, stores and shops (and people of course). There's also ample industrial/commercial land in Saco right off Rt1 such as Mill Brooks which has yet to be developed to its potential (one building is already empty).  There are already a lot of people around here looking for housing and the potential for a very busy, growing city or cities are there, just how long will it take... 

    Now, who's your target market and what will they want, need, afford and expect? 

    Good luck!

    -ZT

    PS if you would like to bounce ideas around let me know I live right in Saco

    1Reply
  • Zachary Taylor
    Flipper · Saco, ME · Member since 2016 · 3 posts · 3 votes
    9y

    Hello @Robert LaRoche,

    How has the house-hunting been going? Checking to hear some boots on the ground perspectives from others in the area. Currently have not had much luck recently since my past two offers were rejected by all cash offers in FULL price and I'm not in a rush to make low profiting deals. Hopefully you have been having better luck!

    0Reply
  • Robert LaRoche
    OP
    Westbrook, ME · Member since 2016 · 7 posts · 3 votes
    9y

    Hey @Zachary Taylor 

    Thanks for reaching back out and sorry for the late response! Crazy you made two full cash offers and got denied?? Ive had similar expereince but I havnt even been able to make an offer. There have been three places that I saw the day they came on the market and asked my realtor to set up visits but before I could get in they were already sold! I for sure dont have enough exp to make a deal sight unseen just yet so Im just sticking to my process and letting things play out some more. 

    Id love to get your feedback on a couple of the deals that Ive analyzed? See if Im atleast on the right track?

    0Reply
  • Beau Cormier
    New to Real Estate · Portland, ME · Member since 2016 · 1 post · 0 votes
    9y

    Hey @Robert LaRoche,

    Any progress in the Biddeford area?

    0Reply
  • Benjamin Schultz
    Biddeford, ME · Member since 2014 · 17 posts · 3 votes
    8y

    Hey Robert, looks like I’m late to the party but thought I’d chime in.  I began my investment career here in Biddeford in 2014 and now own 20 units.  Long story short, very happy.  Strong market moving in the right direction.  Always happy to meet and chat further.  Good luck!

    0Reply
  • Harrison Smith
    Real Estate Agent · Biddeford, ME · Member since 2017 · 213 posts · 150 votes
    8y

    @Robert LaRoche. I am an agent and investor located in Biddeford and can tell you that Biddeford/Saco is one of the hottest rental markets at the moment. If you would like to connect and discuss the market and the investment opportunities that are out there, I would be more than happy to. 

    1Reply
  • Nicholas Herold
    Biddeford, ME · Member since 2017 · 19 posts · 9 votes
    8y

    My gf and I are just beginning to look into investing in Biddeford. We have friends from there and are thinking that things are looking up. We don't live close by (we're in Massachusetts), so we don't want the 2am call.

    Does anybody have a property manager up there that you like?

    Nicholas

    0Reply
  • Steve Bracero
    Real Estate Agent · Westboro, MA · Member since 2016 · 1k+ posts · 471 votes
    8y

    @Harrison Smith

    Would be interesting to see how Saco, Maine is- 

    1Reply
  • Harrison Smith
    Real Estate Agent · Biddeford, ME · Member since 2017 · 213 posts · 150 votes
    8y

    @Steve Bracero The market in Biddeford/Saco remains strong, but still affordable. We have had a recent injection of out of state money, many Boston area investors looking for cash flow that they can't find. The population is growing, the mills continue to be a driver of activity, and the overall investment into the area continues to increase. As a Realtor and Investor, the only areas I could really recommend as good spots to invest right now are Saco/Biddeford, Lewiston/Auburn, and Bath/Brunswick. The only caution with Bath/Brunswick is that any dip from BWI and this market goes upside quickly, it is very employer dependent. 

    There are a few property management companies in this area. One of the companies that the real estate holding company I am involved with owns is Maine Properties, but there are others like MaineLy and Phoenix that offer some services as well. The level of service you need/want will determine your price point and which company is the best fit.

    I would be happy to discuss the market with anyone or answer any questions that there might be. I live in Biddeford myself and bought into the area 5 years ago to be part of the ride up and so far its been a very profitable ride.

    0Reply
  • Andrew Warde
    Investor · Biddeford, ME · Member since 2015 · 14 posts · 4 votes
    8y

    I would second @Harrison Smith. I've been investing in multi's in Biddeford/Saco since 2012. Love the market. I think retains strong upside potential with lots of amenities currently in place.

    Regarding the mill market, it seems that the mills have never affected by ability to get great tenants. I like multi's with off street parking (transportation to jobs), something that the mills run short of, or its a really long walk.  Love to connect. 

    1Reply
  • David Marshall
    Real Estate Broker · Portland, ME · Member since 2016 · 87 posts · 54 votes
    8y

    Biddeford reminds me of what the Portland Peninsula was like 15-20 years ago. It has some rough areas and the structures are solid overall. The revival of the downtown will make Biddeford very attractive. A tenant of mine wanted to buy and I helped her get a duplex that pays most of her bills. Long-term, I think Biddeford is a good place to buy.

    0Reply
  • Bennett Shaw
    Rental Property Investor · Auburn, ME · Member since 2021 · 3 posts · 0 votes
    4y

    Hi All,

    I realize I am a few years late to the discussion, but I wanted to see what you think of Biddeford now? I am looking at a 4 unit that needs some TLC but seems to have a decent cashflow. 

    0Reply
  • Tyler Bushey
    Investor · Biddeford, ME · Member since 2017 · 282 posts · 180 votes
    4y
    Quote from @Bennett Shaw:

    Hi All,

    I realize I am a few years late to the discussion, but I wanted to see what you think of Biddeford now? I am looking at a 4 unit that needs some TLC but seems to have a decent cashflow. 


     The area is great, if this is off market and you decide to pass is I'd love to take a look!

    0Reply
  • Bennett Shaw
    Rental Property Investor · Auburn, ME · Member since 2021 · 3 posts · 0 votes
    4y
    Quote from @Tyler Bushey:
    Quote from @Bennett Shaw:

    Hi All,

    I realize I am a few years late to the discussion, but I wanted to see what you think of Biddeford now? I am looking at a 4 unit that needs some TLC but seems to have a decent cashflow. 


     The area is great, if this is off market and you decide to pass is I'd love to take a look!


     Its on market and located on George Street. What do you know about this area? I am more familiar with the Lewiston/Auburn market. From a first glance, it seems there is huge potential for growth.

    0Reply
  • Tyler Bushey
    Investor · Biddeford, ME · Member since 2017 · 282 posts · 180 votes
    4y
    Quote from @Bennett Shaw:
    Quote from @Tyler Bushey:
    Quote from @Bennett Shaw:

    Hi All,

    I realize I am a few years late to the discussion, but I wanted to see what you think of Biddeford now? I am looking at a 4 unit that needs some TLC but seems to have a decent cashflow. 


     The area is great, if this is off market and you decide to pass is I'd love to take a look!


     Its on market and located on George Street. What do you know about this area? I am more familiar with the Lewiston/Auburn market. From a first glance, it seems there is huge potential for growth.


     That area is great, I'm actually buying a property on George Street as well.  My only complaint with that property is that it's overpriced for the condition.

    0Reply
  • Dan WeberBusiness Member
    Realtor · Portland, ME · Member since 2015 · 656 posts · 552 votes
    4y

    I agree with Tyler. I'm a huge fan of that neighborhood in Biddo for investing, definitely don't like that particular property at the price. Needs quite a bit of work.

    0Reply
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