Scituate MA- Long Term Rental Opp?

Question

Hi all,

I'm analyzing a single family property in my neighborhood (near Egypt Beach/ Wompatuck Elementary for those familiar with Scituate).  The property needs A LOT of work, so there's value to be had as either a buy and hold OR flip.  I don't know the market for SF rentals and don't entirely trust the research of done, looking for help from local realtors or investors who may have more in depth knowledge to help me evaluate the potential for BRRRRing this property.

Thanks!

EK

Erik Kraemer · Answer

@Charlie MacPherson - Thank you!  Good point on the flood zone, didn't even cross my mind as I'm not, but this maybe .1 mile closer.   Very much appreciate the insight.  Not sure on the summer rental appeal as it's just outside a reasonable walk to beach/harbor and no water view.  $2000 is roughly what I've been seeing as well and appreciate the referral to Tim.

Happy Holidays!

Charlie MacPherson · Answer

@Erik Kraemer  I lived in that same neighborhood (Briarwood Ln - also considered the "Egypt" section) for decades up until 2017.

Be sure you check to see if it's in a flood zone.  If it is, contact Tim at Murphy Carty Insurance in the harbor for guidance.  Especially ask about cost of insurance and whether getting an elevation certificate is worth it.

Here's the FEMA portal to determine flood zones: https://msc.fema.gov/portal/ho...

If you have a 3 bed rental with at least 1.5 baths and no water view, you should be looking to get at least $2,000 per month and if it's suitable for weekly rentals in the summer, roughly the same amount per week.  Depending on the specifics of the property, it could go substantially higher - especially if you have a meaningful water view.

You'll have to drill down deeper to really nail that number down, but this will get you close.

Brian Ellis · Answer

Hi Erik,

Im not familiar with Scituate in terms of investing, but I do know the area has a lot of upside for appreciation.

Have you had a chance to speak to local agents to see what the market rate is for rent? You can also check out rentometer.com

I have bought a couple single family value add homes, ive rented one out for minimal cash flow ($200 a month), but the upside is the appreciation. I lived in them, and fixed them up over time. When im done, I move onto the next one and have a substantial amount of equity in them.

First, id figure out if it is a good investment. Whats the purchase price? Whats the ARV? How much is it going to cost to fix it up? If you can grab it at a steep discount, fix it up, have secured equity AND rent it out for positive cash flow then go for it!

Good luck

Erik Kraemer · Answer

@Brian Ellis Thank you!  I've reached out to a few and used a few other websites, but I'll check out rentometer.  Still running numbers and a lot depends on what I can get it for, but there's meat on the bone regardless.  Cash flow isn't the main driver so would be happy w/ ~$200/month if it were to work out.

Appreciate the help!

EK