Hi All - my partner and I own and self manage 26 units in Fall River, MA. We are buy and hold investors for cash flow. Appreciation is icing on the cake. We are finding our market saturated. I would love any insight on the Lewiston Market.
Are rents stable, in the rise or declining? Vacancy rates to expect? Turnover, etc.
On the surface Lewiston and Fall River appear to me to be similar cities.
I'm an investor in the Lewiston market, or at least looking for my first one in the market. I own 11 units 15 minutes away in a suburb of Lewiston and the market is good. I believe you're right, Fall River and Lewiston are very similar. In Lewiston/Auburn area the prices are good to get in but not everything is a deal. Anything on the MLS sucks there, its just people who have owned since the 90s or bought during the crash that want to cash out. The market is rough, but there are nice neighborhoods. It's an interesting thing because in Lewiston the closer you are to the city center, the crappier it is.
Best bet is to get some off market deals. I know a few people right now offering duplex's in Auburn, ones a full rehab at $50-$60k off market, and another is $105k with a value of $150k that needs some work outside. Personally it will need it inside next turnover as well.
To get down to it though, the are is gentrifying slowly. It's going to take another 10 years to get somewhere like Biddeford is currently but appreciation is still possible. I honestly think a big part of the area getting better is actually providing good housing. The area has a lot of slumlords that just don't give a ****, and they are also mainly older landlords that want to retire and have been doing it for years.
I'd suggest getting a rockstar property management company too. I can recommend one if you'd like as well. Good rates, team, and they always have leads on people selling buildings and put together deals.
Thanks Corey. Very helpful. I have seen the slumlord issue in fall river as well. Not my game, I want to provide quality units to attract decent tennants. It tskes patience but worth it. I would greatly appreciate that referral for a PM.
cody whose your PM company?
I'm a newbie and currently house hacking but I couldn't agree more with Cody. Lewiston feels like the slowest gentrification possible. It's crazy how quickly you can go from a decent neighborhood with beautiful architecture to crappy apartment buildings which are crumbling into the ground occupied by drug addicts.
I'll be looking for a PM company in the L/A area sooner rather than later. Has anyone here dealt with Schneider Property Management?
@Eric Pierpont I haven't used Schneider but deff talk to Central Maine Property Management. The COO has gone to look at a few properties for me to tell me rehab costs, what it'd rent for, etc. Really saved my *** from making a bad investment.
@Chris Cyr I have to agree with what has been said already about Lewiston/Auburn. I currently have 18 units in the twin cities and manage them myself. We are currently remodeling 2 units of a 3 unit on Academy st in Auburn that I acquired in March that was off market. I picked that one and a 4 unit in Lewiston up for 125k. You won't find anything like that usually on the mls anymore. Like @Cody DeLong said it seems people are shooting for pie in the sky with the current listings and from an investors point of view it won't work.
You also will definitely have to factor in remod costs, almost every building up for sale is around 80-120 years old, lead paint, old furnaces, old doors etc etc.
If you decide you are interested in something send me a note and I can tell you about the area it is in. From what you said there are definitely areas you would not want to invest in.
Thanks @carl herbert. Pretty much what I expected. For now we are going to continue to grow locally until we scale