I am new to BP, the Worcester area and Real Estate Investing. I have live in Worcester for over a year now and have notice that the city and the surrounding suburbs are very different and distinct places. My question is, which area (city of Worcester, Shrewsbury, Holden, Auburn, Paxton, Sutton, West Boylston, etc.) do you prefer to do business in? and why?
That is strange to hear suburbs of Worcester. I am not sure those who live in them would think of Holden or Shrewsbury as a suburb of Worcester. I live in Shrewsbury but don't do rentals in this area. I am not sure it would be the best place to do rentals although there are probably good possibilities. I don't think you would cash flow the houses hear but I have never sought a rental in the area.
I don't really have anything to add about the viability of those markets since that isn't where I am investing.
However I'm curious as to how locals refer to the area. "Worcester Suburbs" didn't seem odd to me. What do you guys call the greater Worcester area?
Shrewsbury is a town in itself. Big school district, fairly large area and different interests then Worcester. A suburb of a city is some place where people live and commute into that city to work. The majority of commuters from Shrewsbury go into Boston or the surrounding areas from my experience not Worcester more toward Boston. I would refer to the area by a town name since if you invest in Shrewsbury or Holden you would distinguish that those are the areas you invest in. Most people say I live in Central Mass or Metro West which is more accurate. That being said the majority of investors are probably investing in Worcester.
@Justin Beehler (and @Shaun Reilly ) I grew up in Holden, I always considered them towns, not suburbs. I'm not sure Worcester has suburbs, it definitely has neighborhoods. I always tell people I'm from a "town just north of Worcester" or Central Mass.
Now all that being said, I would and do look at properties outside of Worcester, in particular Holden, West Boylston, and Shrewsbury over by Quinsig and Umass...although for some reason I consider that area Worcester still. Sorry @Colleen F. ;) I think of Shrewsbury as after where Spag's was. No idea why!
Adding @Shaun Reilly again, didn't let me mention last post.
I think there is a tad bit of splitting hairs.
It does seem like a lot of the places out in that Central MA area close to Worcester are more like small towns. I think using the term suburbs of Worcester is just saying they aren't cities but aren't really rural.
So Worcester is the "urban" center closest to these towns so they are the "Sub"-Urban areas near Worcester.
I grew up in Dracut and I guess I would never have specifically called it a suburb of Lowell, but I would call say it was in the Greater Lowell Area which basically is saying it is a suburb since that was the major city.
@Justin Beehler Welcome. I believe it depends on your availability of funds. I see the areas as Cashflow or Appreciation and invest accordingly.
@Mike Hurney so the area does not necessarily matter as much as the purchase price of the property and possible appreciation. How do you guys start to narrow down the areas where you are looking for a property?
Also Mike sent me a message mentioning multi families. Are multi families much more risker than duplexs? or does the cash flow for a multi family far outweigh the extra work / risk an extra tenant or two would create?
@Justin Beehler - I'm struggling to give you a decent answer to your questions. For me, I'm focused on buy & hold. More specifically, I'm after high cash-flow. For that, I look to areas where the purchase price is low and generally find that multifamilies (vs single family or duplex) give the best return. The trade off is that the tenant quality is much lower (not to say that there isn't a large volume of renters) and the potential for appreciation is lower than if I were to invest in a nicer area. I recommend you really refine what your investing goals are beyond just buy & hold. Do you want solid properties and aren't focused on cash-flow? Is cash-flow very important? Do you want great tenants? Do you have time and the stomach to deal with low quality tenant? Once you really know what your long term goals are for investing in real estate, you might find it easier to know what type of building and what location to focus on. I'm sure you'd also get some better answers on this thread. I'm rambling at this point, hopefully it's making some sense..
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