Real Estate Agent · Boston, MA · Member since 2015 · 9 posts · 4 votes
Hello BP,
Was wondering what people thought about investing in Springfield MA? Prices are low and cash flows seem to be legit. A lot of houses on the market seem to be more updated (Outside, inside, plumbing, electrical) compared to other lower price areas in Massachusetts or providence, RI. I know that Springfield is not the best area, but I still think i'm gonna start investing there. I own a small property management company in Boston and the surrounding areas. If anyone is interested in management of their properties please let me know as well.
Investor · Cambridge, MA · Member since 2014 · 6 posts · 12 votes
9y
Hi All,
I currently own a tri-plex in Springfield, MA. Tenants are not section 8 and cash flow is legit.
Currently looking for my next property. Looking for value add properties, but anything worth buying on the MLS goes quick. So instead of competing on the MLS I am beginning to do some direct marketing to absentee and equity owners, as well as pre-forclosures.
I would love to form an investment group with a focus on 3-family or larger, buy and hold. If anyone is interested please contact me.
Investor · Southport, NC · Member since 2017 · 38 posts · 26 votes
9y
Pablo Ottenwalder Jr. I like how you have found a focus, smart. Keep me posted on your progress. Next time I'm out in Springfield I'd like to see one of your projects. Always interested in deals if numbers make sense. Best of luck.
Melrose, MA · Member since 2017 · 8 posts · 1 vote
9y
Thanks @Andrew Laing for the reply. I am new to BP and was expecting a notification email, if there is a reply or mention in this discussion. Anyways, very good info about your purchase. I live in Melrose near Malden area, will be great to meet some time when you are in the neighborhood to learn a thing or two from you!
Developer · Boston, MA · Member since 2016 · 175 posts · 155 votes
9y
@Brendan Garrity I currently invest in the Somerville area and in the Springfield area. From my experience, the cash flow in Springfield is a lot better with less risk due to market price. Last year I purchased a two family in Somerville for about the same price I paid for a 16 unit in Springfield. You would not believe the cash flow coming out of the 16 unit. If you do decide to invest in Springfield please find a good property manager. Depending on your network seller financing is a lot easier to get in Springfield too!!! I hope this helps.
Developer · Boston, MA · Member since 2016 · 175 posts · 155 votes
9y
@Steve Bracero The deal was off market. My agent/property manager found the deal. The owner, owned the property for over 30 years and did not want the residents to know he was selling. The property was purchased for 862k. The break down in units. 8 four bedrooms 4 five bedrooms and 4 three bedrooms equaling 16 units. I wanted to purchase the property for 850k. The seller wanted 862k. I agreed to pay 862k if the seller would give 5 percent seller financing. The bank approved the seller financing and I was able to purchase with 15 percent down.
The terms on the seller financing was rate of 5 per annum amortized over 20 years with monthly principal and interest. Remainder of the loan paid off no later than 7 years.
Investor · Southport, NC · Member since 2017 · 38 posts · 26 votes
8y
Anyone do college rentals in Springfield area? How's the area around Springfield College? I spoke with an employee at the college and he informed me that 90% of undergrads stay on campus, but there is a real need for off campus housing for grad students. Thinking of buying a 2-3 family and renting out per room.
Renting per room in a college area seems like a fantastic idea! Typically college students can be on a 1 year lease and only live on campus (if they are local) from Late August to early December (semester 1) then late January to early May.
Also, consider them having their parents co-sign.
Have you analyzed any of college rentals? I'd like to see !
Investor · Westbrook, CT · Member since 2016 · 79 posts · 27 votes
8y
@Andrew Laing thanks. Congrats to you too. I found the deals through MLS. The first one was a cash deal and it meets the 2% rule. The inherited tenants are not good though.
The reason I chose a fixer for the 2nd property is I wanted to try to do some value add and cash out refinance to improve the ROI. I would like to retain as much capital as possible so i can buy more property.
Let me know when you are in Springfield. We can exchange experiences.
Investor · Westbrook, CT · Member since 2016 · 79 posts · 27 votes
8y
@Josue Velney What bank did you work with in conjunction with the seller financing the deal partially? I would like to find banks that are investor friendly in the area.
Brooklyn, NY · Member since 2017 · 8 posts · 7 votes
8y
Hello all,
I'm new to BP and looking into purchasing my first home in Springfield MA. I'm looking into a multi-family home which I'm planning to rent out the entire property. Currently I'm looking for a good realtor and property management company. I will be purchasing in the next 60 - 90 days.
Real Estate Agent · Springfield, MA · Member since 2016 · 37 posts · 10 votes
8y
there’s a lot of people on this post that would like to buy property in Springfield which is awesome. I have a two family that I bought with a fha, I had it rented out fully making a amazing cash on cash return but of course it’s a fha so one of the tenants had to go so I can move in. That being said I would like to see if the people that are really interested, be able to meet up for a coffee meeting and throw some ideas together and see if something great come out of this. I would like to buy another property by the summer of 2018 but would need a parntner to do that so hopefully we can all meet and see this through
Investor · Southport, NC · Member since 2017 · 38 posts · 26 votes
8y
@Edward Dones very cool that you have bought a two family out there in Springfield. Next time I'm out there we can meet for coffee. Currently in escrow on deal to purchase 7 multi family properties (1 two family, 6 three family). I really like Springfield and have some ideas to share. PM me and we'll get in touch. Anyone else that would like to meet up would be great as well! Happy Holidays to all.
@Edward Dones very cool that you have bought a two family out there in Springfield. Next time I'm out there we can meet for coffee. Currently in escrow on deal to purchase 7 multi family properties (1 two family, 6 three family). I really like Springfield and have some ideas to share. PM me and we'll get in touch. Anyone else that would like to meet up would be great as well! Happy Holidays to all.
Are you self managing these? If so, that's impressive!
Boston area resident, and I'm interested in investing in Springfield. I'd love to chat someone up or hear thoughts on whether or not now is a good time to invest.
I am interested in multi family's as well in Springfield. I'm seeing that many on here have had interest in about 1 year ago. Do you feel it is still a good market to buy Nd hold? Still good cash flow etc
@Josue Velney@Andrew Laing@Brendan Garrity@Nick Newsome@Jose Castillo@Safee Idrees How is the Springfield Market 2 years later? I'm looking at a 2 unit in the Old Hill area. Thoughts on the market? has the Casino hurt, helped, or kept the market flat? It looks like median income is still low (25k) and poverty level is 25-40% depending on the neighborhood. Any other indicators that you found are helpful?
Developer · Boston, MA · Member since 2016 · 175 posts · 155 votes
7y
Hi @Greg Devlin, the Springfield market has changed a bit. The 2/4 families cost more. Personally I have been selling more than buying. I am still keeping the 16 unit and the two 6 units. I like cash flow to much to sell everything. The bigger units are easier to manage. I will have a two family on the market in February or March. PM me if you want more Information. I will see you at the top my friend.
Brooklyn, NY · Member since 2017 · 8 posts · 7 votes
7y
Hi @Greg Devlin, I just closed on a 2 family in Springfield in December. It's a buy and hold. Both units are fully rented. I'm currently in the market for another in the Springfield area. Good luck there are plenty out there for good prices & the rents are good.