Cheap property near Boston

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Lior RozhanskyBusiness Member
Real Estate Agent · Boston, MA · Member since 2016 · 106 posts · 69 votes
6y

@Patrick Hagerty to be honest you may want to consider holding off on investing in real estate and focus on improving your cash reserves. If your max budget is $200K on an FHA loan, meaning you basically have around $10K to play with, you may not be well capitalized enough to buy your first one quiet yet. The real estate game is fantastic, but I always encourage buyers to at least have $5-$10K as reserve funds after purchase (I had a furnace go out within a month of my first purchase that ran me $8K). Especially in the price point you are looking at, if you do find anything chances are it will likely not be in a great location and it wont be in great shape. If you focus on earning/saving for the next year, you'll be in a much better position to go after better property and not place yourself at risk. My 2 cents.

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  • Avery Heilbron
    Realtor · Raleigh-Durham, NC · Member since 2018 · 324 posts · 218 votes
    6y

    @Patrick Hagerty Anything you find for that price range will be an hour or further from Boston...

    0Reply
  • Patrick Hagerty
    OP
    Rental Property Investor · Boston, MA · Member since 2020 · 28 posts · 3 votes
    6y

    @Avery Heilbron how do you suggest getting into properties and real estate from the Boston area? Everything affordable is western mass, RI or CT

    0Reply
  • Pablo Ottenwalder Jr.
    Flipper/Rehabber · Springfield, MA · Member since 2017 · 106 posts · 51 votes
    6y

    @Patrick Hagerty

    Is 200k the down payment money?

    If so I would look into Lynn, Salem area.

    If you want to get into the western mass market feel free to reach out I can definitely help.

    1Reply
  • Avery Heilbron
    Realtor · Raleigh-Durham, NC · Member since 2018 · 324 posts · 218 votes
    6y

    @Patrick Hagerty There are still deals in Boston that make a lot of sense. So I'm not sure what you mean by what would I suggest to find deals in Boston. You can find a househack in a lot of surrounding areas. I live in a duplex in Everett that I own and currently make $300 over the mortgage and I'm about to refi which will give me $800 over the mortgage per month

    1Reply
  • Patrick Hagerty
    OP
    Rental Property Investor · Boston, MA · Member since 2020 · 28 posts · 3 votes
    6y

    @Pablo Ottenwalder Jr. 200k is max cost of the property, first time investor with little money, hoping when it comes time I'll be putting 3.5% down on a FHA loan, looking at prices on multi families looks like western and central mass are my options, any tips or help is greatly appreciated!!

    0Reply
  • Patrick Hagerty
    OP
    Rental Property Investor · Boston, MA · Member since 2020 · 28 posts · 3 votes
    6y

    @Avery Heilbron I have seen a few properties around Boston but all up by Lowell or down by Brockton/ more south, I actually live in Dedham next to Readville would love to be able to regularly drive by my first property and have it close to home but it seems options in all of eastern mass are extremely limited

    0Reply
  • Khalid Hasnaoui
    Investor · Dedham, MA · Member since 2015 · 13 posts · 3 votes
    6y

    I am not sure $200k would get much nowadays in mass. I would advise against getting a property that is more than 30 minutes away from your base. best of luck. a 2 family property in dedham goes for at least $500k. 

    0Reply
  • Steve Bracero
    Real Estate Agent · Westboro, MA · Member since 2016 · 1k+ posts · 471 votes
    6y

    @Patrick Hagerty

    I would look Western Mass. 

    0Reply
  • Patrick Hagerty
    OP
    Rental Property Investor · Boston, MA · Member since 2020 · 28 posts · 3 votes
    6y

    @Khalid Hasnaoui any advice on what to do? Would love a property closer to home but that doesn't seem even close to possible within my budget, don't forget too It would be with an FHA loan requiring acupuncture for the first year

    0Reply
  • Patrick Hagerty
    OP
    Rental Property Investor · Boston, MA · Member since 2020 · 28 posts · 3 votes
    6y

    @Steve Bracero any tips on that? Definitly

    Hoping to get some good tips from expert investors anything helps!

    0Reply
  • Steve Bracero
    Real Estate Agent · Westboro, MA · Member since 2016 · 1k+ posts · 471 votes
    6y

    Springfield/Holyoke. Are you FHA? Then the property has to be in pretty good shape as well

    0Reply
  • Soh Tanaka
    Property Manager · Lindenhurst, IL · Member since 2016 · 854 posts · 506 votes
    6y

    @Lien Vuong might have some suggestions.

    0Reply
  • Lien VuongBusiness Member
    Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
    6y

    Thanks for the mention @Soh Tanaka! Those properties would be about 1.5 outside of Boston mainly in western MA (Springfield area) or south coast (RI adjacent). 

    Low purchase price, C/D tenant class, and high turn overs. 

    [email protected]
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    0Reply
  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    6y

    @Patrick Hagerty It depends on whether that $200K is a down payment or your total budget.

    If it's a down payment, most of greater Boston is open to you, however the prices in most of Boston are astronomical.  3-plexes in Jamaica Plain (where I grew up) are routinely selling close to $2M.  Roxbury, Mattapan and Dorchester - the historical war zones - are gentrifying and prices there are also on the rise.

    If your $200K is the total spend, you're going to be pushed pretty far away from Boston.  If you're working in Boston, look for MBTA Commuter Rail service.  Driving into Boston during the daily rush is horrifying.

    Having recently moved from Plymouth to central Maine, the amount you get for your money here is staggering by comparison.  If you work from home, that's something to consider.

    Looking at Augusta (our state capital), there were 9 3-plexes sold in the last year.  Prices ranged from $65,000 to $185,000.  Portland is much more expensive.  There were 36 sales ranging in price from $358,000 to $745,000.  Looking in Kennebec County where I now live, there were 25 sales, ranging from $65,000 to $260,000.

    1Reply
  • Patrick Hagerty
    OP
    Rental Property Investor · Boston, MA · Member since 2020 · 28 posts · 3 votes
    6y

    @Charlie MacPherson 200k is the total budget, where would you suggest investing when currently working and living in Boston

    0Reply
  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    6y

    @Patrick Hagerty $200K is not going to buy you much of anything inside RT 128.  You're probably only going to find a very few condos in that price range and those won't be in Boston.  You probably won't find much inside of RT 495 either.

    I think your best bet is the South Shore.  Maybe Brockton.  If you're very lucky, Plymouth.  Other candidate towns would be Middleboro, Taunton, Fall River and New Bedford - but watch the commute.  Again, MBTA Commuter Rail is probably the way to go.

    If you're talking investment rather than just a place to live, things get even harder - especially if you buy something needing significant work.  You won't have much room for surprises.  It's just not enough money to work with.

    2Reply
  • Patrick Hagerty
    OP
    Rental Property Investor · Boston, MA · Member since 2020 · 28 posts · 3 votes
    6y

    @Charlie MacPherson what do you think of southern New Hampshire and around providence ? Springfield Massachusetts seems to be my best choice with the most affordable options on multi families

    0Reply
  • Timothy Swenton
    Rental Property Investor · Gray, ME · Member since 2016 · 72 posts · 13 votes
    6y
    Originally posted by @Patrick Hagerty:

    Where do you suggest for a first investment (multi family) with 200k living in Boston?

    Up in my area of maine you could do well with 200k. Pm me if you need any help

    0Reply
  • Jason Bee
    Boston MA · Member since 2019 · 19 posts · 15 votes
    6y

    @ Patrick Hagerty, have you thought about Worcester? The city is the second largest in Massachusetts and will be getting the Paw-Sox (the Red Sox's minor league team) and there are many universities and colleges. The food scene is also blowing up there as well. They also have the commuter rail you can take into work to Boston. You might be able to get a 2 unit multi, but if you can push your cap to around the $350k mark, you can get a 3 unit and probably have some good income. The bank will allow you to do FHA or 5% down, live there and use 75% of the rental income towards your income to pay for the mortgage. The numbers might work for you, but you should talk with a bank. Also, talk with an experienced realtor who sells and possibly has multifamily homes. This is important that they have experience because they will run comps for you and should recommend houses that fit your budget as well as tell you if the property is a good investment. I recommend Josh Handverger at Berkshire Hathaway (Medway MA Office). He held a multifamily Investment seminar and he knows a lot. I was taken aback by how much info I gained from him. Remember, you can always talk with realtors and get MLS listings but not be tied down to a certain realtor unless you sign a contract with the them. It never hurts to start getting MLS updates to check out the market.

    1Reply
  • Brian J Allen
    Real Estate Agent · Worcester, MA · Member since 2018 · 516 posts · 409 votes
    6y

    The Worcester market is super hot.  those numbers may have worked 3 months ago, but maybe not now.  Anything under $400k will have major deficiencies.  There will be 5 Multis over $500k that close in March.  Remember Worcester is Hyper local, and Traffic is huge.  You need to understand the traffic patterns and demographics to know what you are buying.  The building or a dot on a map only tells you 1/2 of the story.

    2Reply
  • Gert Dervishaj
    Member since 2019 · 20 posts · 3 votes
    6y

    I second what Brian said. Market is very inflated. I’m looking at surrounding towns near Worcester and getting much better returns and opportunities.

    0Reply
  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    6y

    @Patrick Hagerty Let me know if you need a great PM!

    0Reply
  • Lior RozhanskyBusiness Member
    Real Estate Agent · Boston, MA · Member since 2016 · 106 posts · 69 votes
    6y

    @Patrick Hagerty to be honest you may want to consider holding off on investing in real estate and focus on improving your cash reserves. If your max budget is $200K on an FHA loan, meaning you basically have around $10K to play with, you may not be well capitalized enough to buy your first one quiet yet. The real estate game is fantastic, but I always encourage buyers to at least have $5-$10K as reserve funds after purchase (I had a furnace go out within a month of my first purchase that ran me $8K). Especially in the price point you are looking at, if you do find anything chances are it will likely not be in a great location and it wont be in great shape. If you focus on earning/saving for the next year, you'll be in a much better position to go after better property and not place yourself at risk. My 2 cents.

    3Reply
  • Patrick Hagerty
    OP
    Rental Property Investor · Boston, MA · Member since 2020 · 28 posts · 3 votes
    6y

    @Lior Rozhansky that’s actually the plan! Assuming down payment would be about 6-7k plus MPI and fees round up to 10-12 for closing, total cash going in is more like 20k

    0Reply
  • Jeff Bousquet
    Rental Property Investor · RI · Member since 2017 · 94 posts · 52 votes
    6y

    @Patrick Hagerty

    Springfield is tuff and prices seem high right now. I bought a three unit there last May. Every month I chase rents. But there seems to be some economic growth in the area.

    Check out Franklin MA and surrounding towns. Or maybe Fitchburg?

    0Reply
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