Worcester Market

10 Replies

Hello All,

I'd like some advice on the Worcester Ma market. From what I've seen on the market, Worcester has reasonable purchase prices, really solid rental rates, and close proximity to universities which is always a plus. I'm not too familiar with the good/bad areas in Worcester just yet but will be doing some "walking/driving for dollars" on the next month or two. I understand Worcester has its rough parts but overall there are some decent neighborhoods.

Is there something that I'm missing about this city? I feel I could find a good owner occupy property with tenants playing a significant amount of mortgage/expenses...

Any thoughts good/bad about the Worcester market?

Thanks in advance for any input

Hi @Andrew Beaver

I am also looking in the Worcester Area to owner occupy a duplex or triplex. I believe there are 13 universities in Worcester so many rentals can be very close proximity to a campus. There are better areas of Worcester and one street could be excellent while the next street over can be very different. How are you finding your deals currently or are you just looking around the area? Feel free to reach out an we can discuss more! 

Hey Steve Bracero ,

That's excellent to see another in a similar situation as me in the same area. From what I've heard, I agree with what you're about Worcester. Nice college town with hit or miss streets. Currently I'm using Trulia for my basic research and I visit quite often and do a bit of driving around tiger familiar with the area.

I originally was focusing on Malden/ areas closer to Boston but did not think it was realistic to find something in my price range that wouldn't dry out all my funds.

My hope is to actually send out letters and try to find a deal that way while also using MLS (currently getting my real estate license for research purposes primarily).

With the potential help of a NACA loan, I may be buying sooner than expected (6-9 month range) but I'm still heavy in the understanding the market phase so it's no rush to me.

I'd be glad to bounce deal analysis between us / attend open houses as they come along if that's something you're into.

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as an multi family agent I am having a hell of a time finding multi's for buyers with decent cap rates. I really feel that Springfield and Worcester are decent COC return in the state.

@Andrew Beaver

Yes, I agree it takes alot of time to learn the area.. I also use craiglist and padmapper, rentometer to determine what the property will rent for in the area.. This will quickly give me the 1% test to see if the property is worth looking into. 

@Joshua Poitras  

Currently on the MLS I am finding that deals are very hard to come by.. and the homes in great locations are typically going very close or above asking price- they will also be off the market in a week or 2. I am not sure how long it will typically take to find a deal on the MLS- I have been looking for about 3+ months and seen about 15 properties, offered on 3 with decline and no negotiation. I may put down more earnest money in the future but feel my next step is learning how to create better offers-

@Steve Bracero 

Steve, 

Definitely seeing the same thing. Same thing, sometimes I asked myself if the multi family investors are even using the formulas right now. I 'm pretty sure it is just a buy whatever you can frenzy right now. The only multi I was able to get a potential 18% roiling on was an structurally unsafe property with a the owners being in a law suit and in not thato desirable of an area. So.... and with my last clients, we lost bidding wars on river in lowell at 20k over asking no contingencies and another war 50k over asking no contingencies but both fha. 

If your being overly protective about your offers right now your gonna have a hard time getting them accepted. 

Right now I am sitting patient just wathing the market, jobs report came in way over expected with permanent jobs, values are climbing exponentially and foreclosure market is relatively balanced. 

Just patience right now. Although buyer that have a serious motive to buy, I have just started using a good strategy to help them beat out cash and more powerful buyers in multi offer sutuations. 

When I purchased a multifamily property in Worcester,  I looked at and rejected many properties.  Then I found a multifamily property sale that was canceled and the sellers (estate sale after death of their mother) were eager to sell it.   I ended up with a great deal due to my unwillingness to accept a bad one.

Take your time with Worcester if you have to, but also be ready for a deal whenever it shows up.  I'm not a pro, so I know you can do it.

@Justin Feldstein

Worcester depends on the areas.... I use neighborhood scout and drive by areas to understand which ones I would invest in... 01602 is one of the nicest areas or worcester 

@Kate B.

I agree, staying consistent is the biggest key in looking at buying deals- you need to know the areas and what you look for in properties 

@Justin Feldstein I'm in a similar space to you, looking for a 3-4 family for owner occupancy. I think the only way you can justify it is by really walking the neighborhood, not just driving! For instance, there are streets two blocks from each other that are very, very different. For me, i'm basing my decision first off of cash flow and secondly on the number of new businesses mainly restaurants and bars moving/opening in the area. Living in Worcester, everyone i know (mid-20s) is looking to make the neighborhoods more like Boston where walking and biking to bars is common. To attract these young professionals/medical residents/graduate students i'm trying to identify areas. 

Happy deal hunting!