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.)
Real Estate Agent · Worcester, MA · Member since 2018 · 516 posts · 409 votes
5y
@Alexander Rosario, This is a tough ask. First off it is very hard to get both appreciation and high CAP Rates/Cash Flow. This is the risk reward part of investing. The lower the risk, the lower the CAP rate, the more likely you are to have appreciation. I am intimately familiar with the Worcester Market for the last 20+ years and the multiple cycles we have seen. The multis in the best locations (surrounded by SF homes) have always maintained value in the ups and downs. The ones in areas Full of Multis and on hills, with limited parking have risen and fallen more quickly. You can try to time the market if you like, for appreciation but that is difficult. Ultimately in Worcester, Springfield and Fall River, a majority of the Multi family properties trend to the price of rent. Worcester has had huge rental appreciation over the last 4 years. Average 3 BR apartment in Worcester was $1326 in 2017 and in 2020 it is $1742, that is SECTION 8 Rent based on HUD statistics. THAT is 31% increase !!!!!!! This pretty much mirrors the multi family price appreciation. If the Helicopter money from the FED continues and we have inflation, one of the few ways to keep up with inflation is to own appreciating assets like real estate. But keep in mind, the best multis are in the areas with the least amount of multis, as they are where people prefer to live!!!!!
Fall River, MA · Member since 2020 · 12 posts · 2 votes
5y
@Nick Earls it’s going to be 825 Davol St. Durfee street is right near there a couple min walk and there’s a lot of multi family’s. My thought is that that’s the first street that’s going to feel the impact from the train. The area currently is an okay area. Not the best not the worst but it could be a hidden treasure if that train gets things going in the right direction
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.)
Hi Nick,
Fall River, Taunton, New Bedford have all been great for me. Shoot me a PM if you'd like to chat!
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?
Thank you!!
Springfield has been pretty solid for us as property managers. I have no experience in Worcester or Fall River.
Springfield is like Hartford,CT in the sense that you would do well to stay out of the North End. If you are near the hospital (Baystate) you will always get a few nurses interested in your property, which is comforting to know. Generally, the further you are from 91 (in springfield) the better / nicer the neighborhood. Indian orchard is pretty nice.
Feel free to reach out with any questions about Springfield / western mass. We are based in Windsor Locks, CT but cover a lot of western MA, up to the Berkshires give or take.
The Greater Fall River area currently has some great opportunities for multi & single family homes. Rents are rising and now is a great time to invest in this area. Amazon currently has a 1 million sq ft warehouse in the north end of Fall River and south coast rail connecting to Boston is scheduled to arrive within the next few year.
Thanks for the advice, Fred. Is there documentation showing where the train stations will be?
They have been talking about this "train" stations for 25 years !
Accountant · Westport, MA · Member since 2021 · 17 posts · 5 votes
5y
Hi everyone, what are your current thoughts on investing in Fall River/New Bedford? I recently moved back to the area and still find that some of these properties are high with the pandemic and will not generate as much cash flow. Thoughts?