Developer · Tewksbury, MA · Member since 2013 · 43 posts · 22 votes
Hi everyone, I'm currently looking for towns in MA where I can find good cash flowing multi families. I'm currently looking at Worcester, New Bedford, Fall River, and Wareham. The latter three I'm not really that interested in to be honest, but the prices are so low that I figured I'd keep an eye on them. Worcester seems the most promising from my initial searches. Also open to Rhode Island, Connecticut, New Hampshire, and Maine, but my preference is MA. (PS. I've been flipping and doing new construction projects in the Boston area since 2015 and happy to give whatever advice I can on that topic if anyone wants to message me.)
Westford, MA · Member since 2017 · 6 posts · 3 votes
8y
I'm currently investing in Gardner and there are some good opportunities, but you also have to be careful as the rental market is much slower there than in other areas. For example, I see properties get rented out within 2-3 weeks in Worcester, but in Gardner you should really be planning for 2 months of vacancy right up front due to lower population and less industry causing less churn and overall demand for rentals.
Commuter rail does come out to Fitchburg and the stations are a short drive depending on where you buy in Gardner, but the train is a long ride to Boston... You will almost never get renters living out here and commuting in on a daily basis. Other towns closer to the T and Boston are just as affordable for them, with better amenities (for example, Worcester!).
Investor · Andover, MA · Member since 2015 · 269 posts · 67 votes
8y
@Courtney,
Do you self manage those properties in Gardner or do you have a Property Manager?
Curious as the last time I checked PM’s in the area are so scarce...
Do you self manage those properties in Gardner or do you have a Property Manager?
Curious as the last time I checked PM’s in the area are so scarce...
Self-management for me! Not many PMs to start with in the area and I've not been impressed with what I've seen in general, so decided to manage them myself. It helps that I'm only about 35 mins away and work from home.
The South Shore could be a very lucrative area. It is a very desirable place to live, no shortage of tenants. Lots of opportunity for easy rehab projects.
Developer · Salem, MA · Member since 2018 · 83 posts · 68 votes
7y
I have seen a few people bring up Lynn in this thread. A good way to look at Lynn is to stay around the outskirts, either near the water (diamond district), Lynnfield, or Swampscott are good locations in town.
Property Manager · Fall River, MA · Member since 2017 · 34 posts · 13 votes
7y
Fall River MA remains a great area to buy multi unit investment property. Current 3br apt rents are now averaging $1100/ month and climbing. Great time to buy/ invest in this southcoast area of MA.
Rental Property Investor · Woburn, MA · Member since 2011 · 106 posts · 63 votes
7y
If in MA - I agree, Central MA (Gardner, Leominster, Worcester) still work and are seeing some growth.
One very crude way to look at a market, is to ask yourself the question,
"How much per unit does it cost me, for $1000 in gross rents?"
I.E.: Lowell: Approx $120K per unit = 1200 rent = $100K for $1K
Gardner: Approx $30K per unit = $600 Rent = $50K for $1K
Not the best tool, since it does nothing to measure stability in the marketplace (as @Courtney Fitch suggests above, Gardner is in less demand and takes longer to fill than Lowell, Lowell takes longer than Somerville, etc), but a good crude way to determine how far cash can get you in a % return standpoint.
Personally - I have MA rentals, but I invest OUTSIDE of MA every chance I get! We have an excellent tenant retention rate (due to over communicating with our residents and treating them like family) but when there IS an eviction or security deposit issue, MA = the WORST state ever. My 2 cents!
Real Estate Agent · Worcester, MA · Member since 2018 · 518 posts · 410 votes
7y
in worcester you can do very well for cash flow. just had a buyer close on a 3 family for $250k with $3100 month rent and rents will go up to $3300 next year. on 5 families you can do much better $280k cash (cash is king) got $3900/month in rent, but as people are saying up above, it is all about neighborhood, but 3 BR units section 8 in worcester run about $1050/month so very easy to buy something and get $3150 in rent, all depends on condition and neighborhood
Rental Property Investor · Greater Boston Area · Member since 2018 · 258 posts · 105 votes
7y
@Nick Earls The prices in Worcester have intrigued me the past few months as well. The numbers on some of the properties I've been looking at are quite strong, especially for where I believe we are in the real estate cycle currently. Personally, I'd prefer to invest in "nicer" areas, but I'd certainly consider adding a few properties in Worcester if I already had a well-diversified portfolio in areas outside of Worcester.
If in MA - I agree, Central MA (Gardner, Leominster, Worcester) still work and are seeing some growth.
One very crude way to look at a market, is to ask yourself the question,
"How much per unit does it cost me, for $1000 in gross rents?"
I.E.: Lowell: Approx $120K per unit = 1200 rent = $100K for $1K
Gardner: Approx $30K per unit = $600 Rent = $50K for $1K
Not the best tool, since it does nothing to measure stability in the marketplace (as @Courtney Fitch suggests above, Gardner is in less demand and takes longer to fill than Lowell, Lowell takes longer than Somerville, etc), but a good crude way to determine how far cash can get you in a % return standpoint.
Personally - I have MA rentals, but I invest OUTSIDE of MA every chance I get! We have an excellent tenant retention rate (due to over communicating with our residents and treating them like family) but when there IS an eviction or security deposit issue, MA = the WORST state ever. My 2 cents!
Real Estate Agent · Beverly, MA · Member since 2013 · 353 posts · 93 votes
7y
@Nick Earls My rental portfolio is located in both Gardner and Leominster (currently own 33 units but manage over 100 units), due to the higher cash flow in Gardner and the appreciation that Leominster offers. While my fix and flip business is based out of my Beverly, MA office, I do have an office in downtown Leominster that houses my property management business, maintenance division and Central MA real estate team. We have been renting out our units in Gardner in less than a month if the units are renovated, or over a month if not renovated. We have a list of qualified tenants but not enough renovated units in this market. Construction costs are high so it is imperative to make the correct improvements to get top rent while not breaking the bank. The Leominster rental market is definitely stronger than Gardner with higher rents, but the price per unit is relatively more expensive. Although I am a licensed real estate agent, most of my rentals have been purchased off market via wholesalers.
Happy to discuss your questions offline as there are too many details to cover in one post.
Plymouth, MA · Member since 2018 · 23 posts · 7 votes
7y
Any one looking at the Wareham, Rochester Ma area. I am looking for my first multi family or should I say my first rental property. Any advice for these areas.
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
7y
@Tim Lovell You can do well in both towns - if you can find the right property.
Right now, there are no MFRs on the market in Rochester and only a few in Wareham.
When you say "rentals" are you looking for singles as well?
The other suggestion I have is to expand your search to include Plymouth and Middleboro. There are a lot more properties in those two towns and the prices are comparable to Wareham and Rochester.
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
7y
@Tim Lovell February 10, 6 PM - same place - Tavern on the Wharf, 7 Town Wharf, Plymouth.
@Martin Grizzanti Sorry for the delay - if you don't @tag me, I won't be alerted to your question.
There are no MFRs on the market in Wrentham right now. In the last 6 months, there has only been one sold. A duplex with 5 total beds, sold $10,000 over asking at $629,000.
You might think about expanding your search area.
BTW - the outlet mall there creates a mini traffic nightmare there every Christmas. Not necessarily a deal breaker, but something to be aware of.
I thought I would reply/renew this topic - I’m a newbie investor, and would be grateful for any insights on the best cash flowing rental markets in MA that will hopefully appreciate as well. I live in Medford, and am open to any market within an hour drive or so. Since this is my first investment, I wanted to keep it pretty local. Thank you!!
I thought I would also reply/renew this topic - I’m a newbie investor as well, and would be grateful for any insights on the best cash flowing rental multi-family markets in MA that will hopefully appreciate as well. Does anybody have some feedback regarding Worcester vs. Springfield vs. Falls River in this current market. What areas should I avoid?
Shrewsbury, MA · Member since 2016 · 65 posts · 13 votes
5y
@Phoebe Barrett I am not too familiar with areas other than Worcester. I own 14 units within Worcester and surrounding towns. Rents have gone up from $1000-$1100 for 2 beds (2018) to $1200-$1300 (2020) depending on the condition of the unit. I just finished remodeling a 3 family and I am charging $1600 for the first floor (2 beds). For 3 bedroom apartments average price is about $1400-$1500. It’s a growing market and a lot of competition but you can come across some solid properties if you keep looking. I would love to connect with you as I am actively investing in Worcester.