Beginners question on buying a triple decker in Brockton MA

5 Replies

I am looking to buy a property (3 family home) in Brockton MA. I see one that is on the market but, is being advertise for more towards an investor or contractor due to the amount of work that is needed. From the pictures of the building, it look like it will need major work done to it. The property would not qualify for a FHA loan. My question is, would it be possible or even recommend to ask the seller if they would go down on the asking price (450k). Typical 3 family homes in the area usually are for mid to high 600k. The house would need to be discounted a bit more to make sense to get a loan and repair this house. Granted, I have not seen the inside of the units but, from the description, you can not even go in without a hard hat (says a lot about the property). The property to me is over price but, I can be wrong. Looking to get some advise.

Asking price: 450k

typical price for triple decker are 640k to 690k

The house needs tremendous amount of work

@Johny Michaud I was looking at places in Brockton 2 years ago, process have gotten aggressive over there. I would say it doesn't hurt to ask if they will go down on price. Does an FHA 203k (if I recall correctly) work for this property?

@John Kaspar I did run it by a lender but he said that his office does not do those type of loans anymore. So, I went ahead and ask someone else and found out that it can by done but some mortgage brokers are starting to step away from offering it. He mention that it was a bit of a hassle to get but, it can be done.

That house is gutted to the studs, which means all the sheetrock and everything is ripped out. You're probably looking at over $150k to hire it out to build it, less if you can do the work yourself. I'm assuming electrical and plumbing should all be updated while it's all ripped out. A plus would be zero cap-ex for 10 years or so because everything will be brand new.