Where in Massachusetts.....

Question

Hello all....

My husband and I live north of Boston and purchased our first 3 family almost two years ago in Salem, Ma.  We are still new and learning a lot but we have been VERY lucky with how well our first property cash flows for us.  So here we are again and we have been looking around, as we are ready to purchase again, but as you all know the market isn't allowing us too.  So here I am looking for suggestions on other towns around the state to look into.  We are not opposed to investing either South, West, or Central, Mass but our biggest issue is identifying the right towns.  We have started researching but was hoping to hear from others who have suggestions on specific towns that we can look into that are decent areas and will actually produce cash flow, unlike what is happening here just North of Boston!  Thanking everyone in advance and looking forward to hearing your responses!

Charlie MacPherson · Answer

I agree with @Nelson Fernandes.  There is a bubble around the center that is a rougher area.  But go west about 8 blocks and it is indistinguishable from Braintree.  I can't remember who said it, but someone told me that the Mayor is working on a plan to march that line from west to east.

It's also a good rental market.  I recently sold a 3-plex in Brockton at $350,000.  Try finding that in Salem!

And yes, I know a very good real estate agent who knows the area.  I saw him in the mirror this morning!

Nelson Fernandes · Answer

Hey there @Angie Briggs. I would agree with Charlie in that Kingston, Brockton, Plymouth, etc are great places to start looking.  I wouldn't be so quick to rule out Brockton, it's really not as bad as people think.  I've lived here for over 30 years, own businesses and property in the city and will continue to invest.  I just sold a fix & flip for $400,000 on Brockton's South Side just to give you an idea.  Of the locations Charlie mentioned, Brockton is probably the best located as the city has THREE commuter rail stops which has been attracting Boston buyers and renters by the truckload (my fix & flip buyer was from Boston as well as the four other offers I received on the house). The rents are on the rise as more and more from Greater Boston are moving to the South Shore. If Brockton still isn't your cup of tea then I would definitely consider Kingston and Plymouth next.

Charlie MacPherson · Answer

South of Boston is worth a look.  I looked at a 5-plex here in Plymouth County yesterday that was outperforming the 1% rule.  Those are really scarce - especially inside the RT 128 belt.

Western MA, particularly west of I-91 has some very low prices, but much lower rents to go along with it.  The same can be said for Fall River and New Bedford and to a lesser extent, Taunton.

I'd suggest looking in Kingston, Brockton, Plymouth, Pembroke, Whitman and all 3 Bridgewaters.

Charlie MacPherson · Answer

Personally, if I were buying there, I'd look for the west side, which is fairly well defined by zip code 02301.  The other Brockton zip code, 02302 has some parts that are good too, but also contains some of the rougher parts.

Angie Briggs · Answer

What neighborhoods in Brockton should I check out or stay far away from?

Angie Briggs · Answer

Hi Nelson!  Thank you both so very much for your input, I appreciate it greatly!  We are fairly new investors (still have loads and loads to learn) and I, by nature, am a worrier (I blame my kids for this one!).  My mothers family lived in brockton for years, now fall river, and maybe they put a bad taste in my mouth (god forgive me but they weren't very nice tenants to their landlords and abused the Mass system tremendously-lots of evictions).  I certainly won't rule it out and will start looking more into those areas.

Charlie I wish I could find that in Salem ha ha!  My property in Salem just outperforms the 1% rule (at about 1.5%).  I have actually thought about selling that property, at the higher return now, and taking the profits and investing south shore in several properties to expand our portfolio.  BUT, the property cash flows so well for us I am not sure that is the best idea. We go back and forth with that a lot what to do.... Because we are newer and don't have huge savings laying around that is definitely the challenge for us at this point, being able to come up with down large down payments, so south shore would be more manageable.

Angie Briggs · Answer

Hi Charlie

Thanks so much for your response!  We definitely see what is happening here on the north shore. We own a single family in Lynnfield and a 3 family in Salem, prices are crazy!  So yes we are looking elsewhere. We don't want Brockton or any higher crime towns.  I will start looking into other you have suggested.  Do you have any recommendation with real estate agents that know that market well to maybe give me a better idea on specific neighborhoods to avoid, etc?

Where in Massachusetts.....

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