Springfield, MA multi-family
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.
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.
Hello everyone!
I'm looking to invest in the Springfield, MA area. Would you consider this to be a C+ area? How is the current cash flow looking for multi-familes (3-4 unit)? Did the area improve or get worse in the past 3 years? etc.
Would love to hear everyones feedback!
Hello everyone!
I'm looking to invest in the Springfield, MA area. Would you consider this to be a C+ area? How is the current cash flow looking for multi-familes (3-4 unit)? Did the area improve or get worse in the past 3 years? etc.
Would love to hear everyones feedback!
I do think some areas of Springfield can be considered C+, but if I had to give it an overall rating, I would probably say it's around C / C -. Generally speaking, you want to stay away from 91 and away from the North End. Once you start moving towards the South Eastern side, things get noticeably better. We like the Indian Orchard area ourselves.
@Brendan Garrity Hi Brendan, I realize this post in a few years ago. I am curious to your success in Springfield or if you’ve moved onto other areas. I have been looking in various areas of MA but struggling to find something with attractive returns. Thank you.
Best,
Ryan
Hello All,
any Springfield MA area investors care to share their experiences in that market? I have been looking at opportunities there and on paper they look pretty good. How is the actual experience of owning and renting multi family property in the city? I am from the Worcester area and this market has become increasingly difficult to find decent deals in. Prices continue to rise and inventory is slim and in my analysis cash flow seems tight. What areas of the city do you feel best about? What do you feel you would have wanted to know about the area before investing in it?
Thank You in advance
Phil
Hello All,
any Springfield MA area investors care to share their experiences in that market? I have been looking at opportunities there and on paper they look pretty good. How is the actual experience of owning and renting multi family property in the city? I am from the Worcester area and this market has become increasingly difficult to find decent deals in. Prices continue to rise and inventory is slim and in my analysis cash flow seems tight. What areas of the city do you feel best about? What do you feel you would have wanted to know about the area before investing in it?
Thank You in advance
Phil
@Alexander Rosario Hi Alex- there are some C neighborhoods in Springfield but its mostly D neighborhoods and properties. High crime, no job growth, worst public schools in MA, below state median income, etc. And no effort by the city or state to turn it around. Dont be fooled by the casino- casinos mever help with jobs or crime. Theres a reason Worcester got the ballpark and Springfield got the casino and the rest of the state and private investment is in the Boston area.
@Phil Dimopoulos Springfield can be a great place to invest depending on your goals. The cash flow is greater than you’ll find in Worcester or Boston. If there is an expectation for average or above average appreciation, Springfield is not your spot. I have 30 total units in Springfield/Holyoke and the cash flow is something I really enjoy. I had a property in Boston, but recently sold because appreciation outpaced the rents, so I sold and took cash elsewhere. I’m now living in NC and multi family properties are few and far between. It makes me appreciate Western Mass as a great place to invest, where there are a ton of multi family units.
Hello All,
any Springfield MA area investors care to share their experiences in that market? I have been looking at opportunities there and on paper they look pretty good. How is the actual experience of owning and renting multi family property in the city? I am from the Worcester area and this market has become increasingly difficult to find decent deals in. Prices continue to rise and inventory is slim and in my analysis cash flow seems tight. What areas of the city do you feel best about? What do you feel you would have wanted to know about the area before investing in it?
Thank You in advance
Phil
Hi Phil,
From my experience, Springfield is very good for multi-family units. I brought a home there in 2018 and I'm currently in the market for another. It's definitely a C- when compared to other areas in Massachusetts but the rents are great and you can find low cost multi's, do a little TLC and make really good profits.
@Phil Dimopoulos Springfield can be a great place to invest depending on your goals. The cash flow is greater than you’ll find in Worcester or Boston. If there is an expectation for average or above average appreciation, Springfield is not your spot. I have 30 total units in Springfield/Holyoke and the cash flow is something I really enjoy. I had a property in Boston, but recently sold because appreciation outpaced the rents, so I sold and took cash elsewhere. I’m now living in NC and multi family properties are few and far between. It makes me appreciate Western Mass as a great place to invest, where there are a ton of multi family units.
Thank You for the input Andrew!
Im looking for cashflow, and look at appreciation as a long game and sort of a side benefit. In your experience is turnover higher than average? Is vacancy high? Are qualified tenants hard to come by? What sort of rents do you get per unit? anything else you would want to know before investing in that market?
Hi Phil,
From my experience, Springfield is very good for multi-family units. I brought a home there in 2018 and I'm currently in the market for another. It's definitely a C- when compared to other areas in Massachusetts but the rents are great and you can find low cost multi's, do a little TLC and make really good profits.
Hello Damon and Thank You for your insight!
What sorts of properties do you look for and own in that market? Do you have a target price per unit per se? Are there certain areas in the city you like and others you avoid? Anything you would have like to have known before investing there?
Thank You
@Phil Dimopoulos Springfield can be a great place to invest depending on your goals. The cash flow is greater than you’ll find in Worcester or Boston. If there is an expectation for average or above average appreciation, Springfield is not your spot. I have 30 total units in Springfield/Holyoke and the cash flow is something I really enjoy. I had a property in Boston, but recently sold because appreciation outpaced the rents, so I sold and took cash elsewhere. I’m now living in NC and multi family properties are few and far between. It makes me appreciate Western Mass as a great place to invest, where there are a ton of multi family units.
Thank You for the input Andrew!
Im looking for cashflow, and look at appreciation as a long game and sort of a side benefit. In your experience is turnover higher than average? Is vacancy high? Are qualified tenants hard to come by? What sort of rents do you get per unit? anything else you would want to know before investing in that market?
Hi Phil,
I can answer some of these from the perspective as a property manager.
You will get a lot of inquiries on your listings from voucher holding tenants (I never realized there were so many voucher programs until we started managing in Springfield). Vacancies are about average with what we are experiencing in other markets. You may get lucky if you have a great unit, but generally speaking the average credit score will be around 600 or so.
We get between 1,000 and 1,200 for a 2 bedroom, 900-1000 for a 1 bedroom and 1100-1300 for a 3 bedroom.
Feel free to tag me in your response if you have any other questions I may be able to help with.
@Filipe Pereira
@Phil Dimopoulos
Filipe has a great beat on the market, his numbers seem right in line.
I will tell you the water costs have been eye opening. Our tenants really enjoy filling up a blow up pool in the Summer. It’s hard to control their use and my water bill on the 2 family ranged from $250-430/month this Summer.
Our biggest surprise in Holyoke with our larger complexes has been the trash bills. We have had a difficult time controlling all the dumping that occurs. We are going to be installing a security camera system in hopes of controlling this issue as well as the drug dealing that occurs on our properties and nearby.
You have to understand where you are investing, and account for appropriate costs. The issues above should not scare you, it is just something you should include in your numbers.
@Filipe Pereira
@Phil Dimopoulos
Filipe has a great beat on the market, his numbers seem right in line.
I will tell you the water costs have been eye opening. Our tenants really enjoy filling up a blow up pool in the Summer. It’s hard to control their use and my water bill on the 2 family ranged from $250-430/month this Summer.
Our biggest surprise in Holyoke with our larger complexes has been the trash bills. We have had a difficult time controlling all the dumping that occurs. We are going to be installing a security camera system in hopes of controlling this issue as well as the drug dealing that occurs on our properties and nearby.
You have to understand where you are investing, and account for appropriate costs. The issues above should not scare you, it is just something you should include in your numbers.
Thanks Andrew. How have tenants been filling pools? Do you have outdoor spigots, or are they filling them from the kitchen sink?
@Filipe Pereira thank you for the information. If I end up in the area I will reach out!
@Andrew Laing thank you for the information.
Any updates on the Springfield multifamily market? Recently wholesaled my first duplex there and was looking into some buy and holds in the near future. My investing goals are to build cashflow longterm vs appreciation. Any suggestions or things to look out for? Thanks!