What Should A Massachusetts RE Investor Know?

Question

Hey folks,

Just wondering what a real estate investor should know about the Massachusetts market. Especially what’s going on out west - I live in NH and haven’t been that far.

Jesse

Filipe Pereira · Answer

Springfield is risky, but offers good cash flow in return. Try to stay tucked into Springfield, and not along 91 if you can. Lead laws in MA are potentially a deal killer if you don't know how to navigate them - I'm sure Derreck will jump in here soon to enlighten us all, again.

The thing that scares me the most about Mass. (besides their Lead laws) are the laws regarding what's considered as 'timely rent' (30 days) and that I can't collect a 2nd month for security deposit (like I can in Connecticut for anyone under the age of 62).

Tag me in a response if you have any specific questions you think I can help with @Jesse Cote. I've been working in the MFR space in Springfield for 3-4 years now.

Filipe Pereira · Answer

These are great points, Nick. I think it will be interesting to watch the Westfield market over the coming months / year as the university has a strong foothold in that rental market I bet. If the pandemic continues at the rate that it is, it will hurt the college town rental market and may cause the rental market to plateau a bit in that area. We're already seeing irreversible trends (for a few years at least) in NYC from folks fleeing the city to go into CT suburbia. Cities were first, and I think college towns will be next unless we get this thing under control and students back to school...

Nick Brigham · Answer

@Jesse Cote

I agree with @Filipe Pereira. The Lead laws can be deal breakers and the laws in MA are generally more favorable to the tenant vs the landlord.  I actually feel like investing in NH is a little more landlord friendly than MA is.  To me it seems as though the further west you go in MA the more and more like rural you get.

With it being more rural some challenges may include finding good tenants with good paying jobs.  Vacancy will kill your numbers. I would look for hospitals, colleges, etc per town. For example if you are not to far from Springfield MA there are a number of hospitals there as well as a colleges.

Let me know if you need help setting up an MLS search or anything!

Good Luck!

Jesse Cote · Answer

@Filipe Pereira Thanks for the insight Filipe, I’ll let you know!

What Should A Massachusetts RE Investor Know?

Most Popular Reply