My name is Alex Wardell and I live in Sandwich, Massachusetts. I am very new to real estate and the only experience I have is from buying my primary residence back in 2014. I am currently a state employee for the state prison system and I am looking forward to adding that to the list of previous work experience rather than current.
Prior to living in Massachusetts I lived on the New Jersey coast until I enlisted in the United States Marine Corps in 2008. After five years of active duty I deiced a change of scenery was a good idea, which lead me to Cape Cod.
My goals in real estate are buy and hold rental properties, mainly multifamily. I am looking forward to learning from others in the business as I start this path to the ever so elusive financial freedom!
Thank you all
@Alexander Wardell First thing you should do is to familiarize yourself with MA landlord/tenant laws - which are biased WILDLY in favor of tenants.
Next, learn about Fair Housing. There are 7 federally protected classes. In MA there at 15. There are also "testers" sent out by the state to entrap you into saying or doing something that they can call discriminatory. They will prosecute you and the courts have already held that "entrapment" is not an allowable defense.
Once you have that all figured out, it's time to move forward.
I have long been a fan of Plymouth and Bristol counties as the places where an MFR buy can still make sense. The key is to watch what comes on the market very closely. When a target property surfaces, be prepared to act on it within HOURS not days.
Be prepared to show a solid proof of funds (not a print-it-yourself POF from a hard money site) and to submit a reasonable offer (most likely 97%+ of asking price).
And if you have a good agent, you'll get that property under contract and start you due diligence. From there, the flip games begin!
Thank you for the info! I will look into landlord tenant laws and start my funding venture. 97% of the asking price is high but then again if I can get a good MFR the rents will more than cover the monthly expenses, at least from what I have seen on the rental market.
@Alexander Wardell I wanted to see if my 97% of asking was about right, so just for fun I ran the numbers on MFRs that sold in Plymouth County in the last 6 months. Here's what I found.
There were 208 units sold. Of those, 123 were sold in Brockton. 13 in Plymouth, 8 in Middleboro, 6 in Wareham.
Average list price: $418,745
Average sell price: $407,215
Sell price as a % of asking: 97.24% of asking.
Low price: $137,000 (Brockton. A wreck of a duplex)
High price: $875,000 (Also Brockton. A 6-plex + a duplex package)
Average days on market: 49.8 (from listing to close)
Average days to offer: 32.7
That might give you a better idea of what to be prepared for as you start to hunt down MFRs.
Welcome to the world of real estate @Alexander Wardell ! Read, listen, and meet...you're likelihood of being successful in real estate will increase dramatically if you just do those three things. Good luck!
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