New to the forum currently in North Adams, MA

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New to the forum currently in North Adams, MA

Brian Gallagher
Berlin, Berlin · Member since 2017 · 7 posts · 3 votes

Hello!
My name is Brian Gallagher. I currently do live in North Adams, MA.  Previously I've lived in Indianapolis, Chicago, the Bay Area, and then a plethora of small towns in the US.  Additionally, I've lived outside of the US.

I currently work in Higher Education.

I'm interested in learning more about investing in properties (either rentals or buying notes) in urban areas with booming markets (not my current living area).

I've 'lurked' a bunch on BP and listened to the podcast enough to know that I'm not super interested in investing in my local area (declining market, struggling economy...etc).  However, there are lots of interesting things happening in this area- some insurgence in the economy and then just lots of properties available - although, many of them are in rough shape.

Also looking to learn more about investing in small companies that are looking for additional investors.  

As an aside, I've worked in Higher Ed for over a decade - if you have any questions about Higher Ed (or running a rental property with college aged students in it) I'd happily help.  I know a lot about working with college students in a housing (on-campus) environment- which translates to off-campus work too. 

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Michael S.Pro Member
Biggerpockets Support · Las Pinas, Metro Manila · Member since 2015 · 7k+ posts · 1k+ votes
9y

Welcome to the BP community Brian

BiggerPockets
2Reply
See this reply in the discussion

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  • Michael S.Pro Member
    Biggerpockets Support · Las Pinas, Metro Manila · Member since 2015 · 7k+ posts · 1k+ votes
    9y

    Welcome to the BP community Brian

    BiggerPockets
    2Reply
  • Iverem Rose
    Brooklyn, NY · Member since 2016 · 152 posts · 44 votes
    9y

    @Brian Gallagher

    Welcome to the BP community. You should definitely listen to the podcast as there have been several guests who've successfully done well worth student rentals. The most recent podcast features Ricky B, a local investor from Boston who has success with that strategy

    1Reply
  • Brian Gallagher
    OP
    Berlin, Berlin · Member since 2017 · 7 posts · 3 votes
    9y

    Thanks for the welcome & pointer! I'll look to that episode of the podcast. I'm not sure college student rentals is for me, but worth learning about for sure!

    0Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    9y

    Episode 140 of the Podcast Featuring Bill Syrios also focuses on College Rentals.

    [email protected]Podcast Guest on Show #261
    BiggerPockets
    2Reply
  • Mark Nolan
    Professional · Carlsbad, CA · Member since 2012 · 12k+ posts · 1k+ votes
    9y

    @Brian Gallagher

    Welcome to Bigger Pockets. The Bigger Pockets book store if full of great books: https://www.biggerpockets.com/store

    1Reply
  • Moshe H.
    Rental Property Investor · Ramapo, NY · Member since 2016 · 243 posts · 108 votes
    9y

    Hi @Brian Gallagher, welcome to BP! Isn't it funny? Here I am investing in North Adams, Massachusetts from 150 miles away, and you're living there also looking to invest long distance. The grass is always greener, right? Of course, I understand where you are coming from and I'm going into NA with eyes wide open about the potential risks (and also starting small!), but rural areas can provide opportunities too - and as you said, North Adams is moving in a positive direction and actually attracting more out-of-area investment (like Greylock Mill). It is probably true, though, that appreciation - if there will be any in NA - is a very long-term play.

    Despite the lack of organic appreciation, North Adams does provide numerous opportunities for what @Brandon Turner (who lives & invests in a rural area very successfully, wink wink) likes to call "forced appreciation." Although this strategy requires you to be much more hands-on, distressed properties in places like NA can be picked up for $20-35k and renovated to resell for $90k and up, based on what I've seen (haven't been involved in that part yet). These properties can also be held for rental income, while you have the safety of sitting on a large increase in equity, or even cashing it out with a refinance. In the end analysis, the low price point of entry into the local real estate market and the positive direction the city is moving in, with its "2030 Vision Plan", its continual investment in the arts and the neighborhood renewal going on makes me optimistic about this place, despite the real problems of low job growth outlook, etc. And once you live there long enough you might start taking it for granted, but the dramatic natural beauty of the mountains is something that will always attract people to live in and visit the northern Berkshires.

    You've probably seen this by now, but I'll share the link here from the Small Business Revolution video made about North Adams, where it was a finalist: SBR Season II Finalist - North Adams, MA

    Finally, I'll invite my friend and associate @Robin First to weigh in here if she wishes!

    1Reply
  • Brendan L.
    Boston, MA · Member since 2017 · 74 posts · 8 votes
    9y

    Good to see recent discussion- I also live in North Adams and would love to be able to profit from a rental property in town.  @Moshe H. I agree, I've seen the town is moving in a positive direction in the ~2 years I've been here with some new businesses- I didn't know about the Vision 2030 plan, thanks for sharing. 

    As a first timer, I worry about a lot of things though- mostly around being able to find tenants and losing money to vacancy rates. Looking on craigslist, I'd score the livability of a lot of places I see as moderate to low- there don't seem to be many updated, decent looking places to live. You'd think by providing a decent product, you'd have an upper hand finding tenants, but I just don't know for sure. The big thing stopping me is what happens when no one rents for an entire year, and I'm ready to move out to another job? Maybe see how the renting goes over the next 2-3 years and decide from there whether I hold or sell, I guess.

    A lot of foreclosed or abandoned buildings up on the hills- there was one for around 20k that looked like a great base, until I saw it has asbestos siding, so who knows what else is inside the building. I worry about their location up there though, too. I can't help but think near MCLA is the only reasonable option if I want to find tenants- I would think people actually moving to the area for jobs would gravitate to Pittsfield and Williamstown. 

    There were 44 duplex sales in NAMA in the last year or so, not too scary low number, as far as exit goes. Population is declining all over Berkshire county, a little nerve wracking when trying to get into REI locally.

    Another thing I've noticed is how the houses are built on top of each other. There is so little space on the land that a lot of these buildings sit, its kind of ridiculous. 

    1Reply
  • Carl Schmitt
    CT · Member since 2010 · 135 posts · 100 votes
    9y

    Hi Brian,

    Welcome!  Small world- I grew up not far from North Adams in the Dalton area.  I would tend to agree with you.  I would probably shy away from North Adams as well.  However, I think there is money to be made in a lot of the surrounding towns.  

    If you're looking for an agent still, my mother is an agent in the area.  

    0Reply
  • Moshe H.
    Rental Property Investor · Ramapo, NY · Member since 2016 · 243 posts · 108 votes
    9y

    Hi @Brendan L., thanks for the great input and sharing your valid concerns. I think I agree that providing a decent place to live should attract better tenants, but you have to screen properly. I don't know how much you've delved into BP's resources and podcast, but they're great for giving you the knowledge to feel more confident beginning in real estate. Only thing is they are heavily biased toward urban areas ;-) 

    I don't know if you're already a home-owner; if not, maybe you could consider buying a duplex and living in one side? Here at BP they call it "house-hacking". (You can do it with any property up to 4 units, which still qualify for low down payment FHA loans/traditional mortgages.) It's an easy way to get in the game with less risk because at worst if the other side is vacant, you're probably not paying much more (for mortgage) than you would even without a rental property.

    0Reply
  • Brendan L.
    Boston, MA · Member since 2017 · 74 posts · 8 votes
    9y

    Hey @Moshe H. , I've been going non-stop on BP, its great stuff! Living in one side of a duplex is the exact start I want. I could probably pull off forgoing the FHA and go conventional but 2 things: I know I have at least 2-3 more years in my current job, which might seem like enough to get started doing this? But I worry about not being able to sell when I'm ready to leave. Maybe that's just the inherent risk, and maybe I won't want to sell if I can go forward with renting both sides.

    Second is, if I build it, will they come? The uncertainty of not finding a tenant, even when I'm living in the place, given population decline and overall lack of real attractions, is a little halting. I mean, worst case scenario like you said, other side is vacant, and I still actually save money because I can make the mortgage be significantly less than my current rent. But again, what happens in 2-3 years? Will it be on the market for a year and I'll be stuck with a second mortgage payment? Will I sell at a loss? That would be a real bummer. I dunno, I'd love to hear from you, @Robin First , or others about mitigating these risks

    0Reply
  • Brian Gallagher
    OP
    Berlin, Berlin · Member since 2017 · 7 posts · 3 votes
    9y

    Well, i go away for the weekend & great conversations happen!
    First off, thanks @Moshe H. @Brendan L. & @Carl Schmitt for your greetings and participating in the conversation.

    Since I posted the welcome, a few weeks ago, my wife & I have looked at all sorts of properties in NA. We've looked at about a dozen duplex/triplex units (almost every unit that is currently on the market).  Being it that we are not looking to flip a property, only one property was really exciting for us (specifically thinking of a property that we would live in unit and rent out the other - maybe our standards are too high?).

    Our bigger concern is one that Brendan also mentioned- we are not sure how long we want to stay in the area.  So... that one property that looks nice, doesn't look amazing when you weigh those issues.  Also, we're concerned about a few things with that property.  Not that we are looking for a 'perfect property'... but, we are ok with some things that need doing & not others.  

    Anyhow, 

    Moshe: I'd love to connect more & chat some.
    Brendan: It'd be great to meet up & chat in person.
    Carl: Please do send me a message with your mother's name. We have a realtor we are working with (out of Dalton actually) but, always worth having more connections.

    1Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    9y

    @Brian Gallagher

    Welcome to the BP family! Here are some recommendations for you:

    Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet
    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
    Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
    Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast/

    Wishing you the best!

    2Reply
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