New Member Near Boston; Trying To Expand My Portfolio

10 Replies

Hi, my name is Lauren and I am just north of the Boston area and boy are things expensive hear. Shoosh.

I bought my first multi-family (2 unit) about 8 years ago when I was 25 and now I'm looking to add another house to that. I've been making some offers on multi-families in my area more specifically 3-families.

Trying to read and learn as much as I can. I know so much more know than I did 8 years ago. Fortunately, my first home cash flowed before I even knew what that meant. Then I refinanced it a few years ago when the interest rates dropped and now does it ever cashflow. I'm looking to refinance and pull all the money I invested in it originally to have a smaller cash flow but no money invested for I can invest that money into another property.

Looking forward to chatting with people. :)

Hi Lauren.  I'm the owner of Clear Sailing Realty and work with lots of investors.  I currently have an off-market 3plex in Roxbury.  Rents are $8800/month and he's asking $850,000.

I also have access to anything on MLS.

I'm happy to help with your next buy.  Feel free to message me through BP.

Wow. Thanks Charlie. $600k is our max right now with what I have in cash and what I have in my current house. I prefer the Middlesex area and parts of Lynn myself. Just put in an offer on a 3-family in Woburn. Good to know there are some locals on the board. We (my fiance and I) definitely have a game plan to try and buy a house every year or every other year to start.

Market is so hot right now in some areas, would be good to know about off-market deals.

Hi Lauren, welcome to BP.

This is a great place to learn. Make sure to listen to all the BP podcasts, read the articles on the main blog and be active in these forums to learn a ton very quickly about any topic in real estate you want to know more about.

This is also a great place to meet people that can be assets to your business. Lots of great connections all over but we also have a very strong and active contingent here in MA on here so make sure to find them (Set up some keyword alerts to find out about local topics) and get connected.

Besides doing that on here make sure to get out to some of the many local investor events we have. My favorite is the Black Diamond meeting in Waltham (alternates every other month with their Worcester location, next Waltham meeting is in July). Other ones in and around the city are The Boston Wealth Builders in the city, the Boston Area REIA in Medford and the Boston REIA in Dedham. Since you said you are looking mostly north you can also check out the NEREIA in Chelmsford and a couple of meeting up on the north shore as well. Many other options north and south of the city as well.

Thanks so much Shaun for all that information. I'm going to have to look into some of those events and meetings. Never heard of the Boston Wealth Builders. I live in Medford so is can chek out the REIA.

Thanks for your help. Much appreciated.

Hi @Lauren Bateman Medford is a great area to invest in the Multi-family rentals as I am sure you already know from you cash flow experience over the past 8 years. The best areas in Medford near tufts and hillside are out of the 600k price range unless you can find something off-market, in foreclosure, or needs a lot of work. The fixer-upper route is viable and you will be pleased with the appreciation and value once work is completed and you can expect to get great rents. An alternative route I have taken with some of the first time investors I have worked with is venturing out to cities like Malden and Quincy where the prices are lower but the rental comps are strong and they both have access to the T. Woburn has a big development plan that is still getting pushed through where a 107 acre lot was sold by Kraft and Heinz. The city is trying to pass a new zoning blanket where a multi-use zoning for commercial, residential, and biotech will be able to come to the 93/95 area of Woburn so I see Woburn having some some real growth in the years to come. I work with many investors in the Medford area and would be happy to help you in anyway I can. Feel free to reach out anytime.

Hi Taylor,

Yes, Medford is a great area, but it's become VERY expensive over the past 5 years. We are venturing a bit into Lynn and we put in an offer on a 3-family in Woburn but didn't get it. People are just overbidding everything it seems. Fixer upper route seems to be the best route for these areas to get something affordable with decent rentals.

I currently own a 2-family in Woburn which I bought about 7 years ago. I have about $70k of my money into it and I was thinking of refinancing and pulling all of the money out to have the cash. This would dramatically reduce my cashflow, but I would still have about $150/month after all expenses including vacancy and maintenance. I personally LOVE Woburn. Very convenient city and I know it's going to be a very up and coming area because of it's proximity to 93/95.

We are getting a little bit discouraged. 

I'm right there with ya @Lauren Bateman (regarding the slightly discouraged part).

I'm a complete newb so my words don't pull much weight but from my conversations and just basic research... Areas close to Boston are really tough to find reasonable deals unless it's off market/hasn't been gobbled up by big wigs..

My newest thought is just moving further away from the city in areas such as Worcester. I've been told Lynn's a good place for me to consider as well.

I wish you the best! Sounds like you already have a great success path in place!

Hey @Lauren Bateman & @Andrew Beaver I'm a real estate broker and investor in Salem. MA.  I can attest that Multi Families are becoming increasing difficult to find.  In such a tight market you must be creative in how you find your deals and you must be hitting them before they hit the market.  When you drive by the areas you are interested in write down the address that catch your eye.  With your list head over to the registry of deeds website, town city hall, or to PatriorProperties.com and find the contact info for the homeowner and reach out to them. If you are working with a real estate broker have them run you a report of expired/cancelled listings.  Go back as far as 36mos and reach out to those owners.  If an owner tried to sell their home and it didnt sell they may be a little more motivated to sell it to you off-market.  Lastly, tell everyone what you are doing.  Your sphere of influence will be great in telling you about some juicy properties.  I have a few clients that call me at least 2-3/mos just to tell me about a home they drove by that needs a ton of work or one that has some fire damage or heard a friend saying their neighbor is about to loose their house.  Best deals are made when you have no competition.  So get out there and start going after some off market gems!!!  Let us know if you need any help.  This site is great about giving advice and helping you see things from a different point of view.  Be sure to use all the tools available to you and make as many connections/relationships as you can.  They will be very helpful in the future.  Stay in touch!

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