Businessmen · Boston, MA · Member since 2014 · 47 posts · 6 votes
I just Refi $120k and looking for over 12units but most of Massachusetts Realestate seems to be almost at an all time high. Any thoughts on where my money can go far. 50% rule is a must.
Real Estate Broker · Manchester, NH · Member since 2014 · 630 posts · 420 votes
9y
@Angel Dejesus Do you need to be purchasing 12 units+ with $120K down? Or are you looking for a specific ROI that could be accomplished with a smaller property? I'm sure you can find a 12-unit in the middle of nowhere for $400K, but that doesn't mean its going to make the same amount of cash-flow that a 6-unit in a prime location for $400K will.
Rental Property Investor · Potomac, MD · Member since 2016 · 115 posts · 64 votes
9y
If your cash available is $120k, then your absolute max purchase price is about $400k. Lenders may balk at that though because there would not be enough cash reserves.
I don't know the Boston market, but in the Baltimore market the only 12 units available at that price would land you in class D properties. I'm not personally willing to go there, but if you have experience in those areas and are comfortable with it then it may be possible.
Also, class Ds will likely need rehab, so you may need to lower your sights to 2/3/4 plexes.
Real Estate Broker · Manchester, NH · Member since 2014 · 630 posts · 420 votes
9y
@Angel Dejesus Do you need to be purchasing 12 units+ with $120K down? Or are you looking for a specific ROI that could be accomplished with a smaller property? I'm sure you can find a 12-unit in the middle of nowhere for $400K, but that doesn't mean its going to make the same amount of cash-flow that a 6-unit in a prime location for $400K will.
a 12 unit would be a commercial loan, so most lenders would expect 25% to 30% down payment.
Figuring you need about $10-15K to close, that leaves you about $100K. Based on that you probably could max out at $400K and that is with good credit and history of doing properties.
This will definitely put you in the C or D class neighborhoods. These neighborhoods will required a lot of maintenance and more turnover of tenants.
yep, its a bit subjective. No, no real list, but based on the rents and their incomes.....kind of draws the line. Besides each town/city have their own A,B,C,D areas. In my example, Haverhill, has some great A- and B+ areas, but the rental areas are the inner city for C.
No offense to folks, but if you see more green grass....A+B and more storage/trash.....C+D.
Investor/Agent/Entrepreneur · Dallas, TX · Member since 2016 · 464 posts · 564 votes
9y
I am in the same boat, and looking to grow my portfolio in the South East Michigan region. Looking in the 10-20 unit range for small apartment buildings.
Let me know if you would be interested in doing something!
Real Estate Investor · Peabody, MA · Member since 2013 · 304 posts · 91 votes
9y
Rich Ng
Would be interesting to see what people listed each of the 351 mass towns if I started a thread. Probably start arguments though haha. I also notice cash for gold and prepaid cell phone stores in questionable areas.
It definitely would stir up trouble. lol. An example would be, I just received a letter from a housing authority for a past tenant to qualify them for sec8......it was Brookline, Mass.
Do you know how many people you would offend if you classified Brookline as a C neighborhood. This is not just because of sec8, but I know the tenant. combine the two and that leaves Brookline in a C neighborhood!
Businessmen · Boston, MA · Member since 2014 · 47 posts · 6 votes
9y
lol. Well it's going to be a renters market and with rents that not many people can afford expect lots of subsidies handed out. But if you do your do diligence it's usually a win win.
@Account Closed Your best bet would be to acquire multiple 6 units. You are probably looking to get all the maintenance under one roof but 12 unit properties are pretty rare here on the SouthCoast. A quick search of the MLS shows that the number of 12+ unit properties currently for sale in ALL of Massachusetts is only 28. The same search narrowed down to just Fall River & New Bedford (the two cities on the South Coast with the most multifamlies) returns just 2 properties.
However setting the search to Fall River & New Bedford and 6+ units returns 38 properties.