Holyoke, MA: Current state of the market
Good Evening,
Comments/concerns/questions always appreciated;
Over the past few months I've been paying close attention to the Holyoke, MA market. Noticing a consistent rise in Holyoke multi-family property values, I thought it would be beneficial to ask if others share the same like-minded opinion?
After diving deeper into the forces driving the current state of the market, I continue to ask myself the following questions;
-What is propelling this surge in value?
-Are rents justifying the increase or is there a variable factor playing a significant role that I have yet to distinguish?
-Are investors more heavily weighing the appreciation benefit over cash flow?
I've seen 2's and 3's go under deposit in a matter of days. That is; 2's and 3's listed for north of 250K. Are these multi's going under because Holyoke is becoming a more desirable "owner occupied" city. Or are investors settling for a "nicer" location with decent rents and quality tenants rather than a purely cash-flow vantage point.
Even if the Holyoke market is seeing rents in the $1200-1300/month range; is this a worthwhile justification to paying a premium on these smaller multi-families?
I often ask if paying $100-125K+, for a turn-key unit, is a more financially effective play compared to buying a rehab/remodel project at discount. I understand a rehab/remodel project carries a far greater risk, but aren't your returns going to be much more enticing?
Thoughts, insights, or comments about anything regarding the Holyoke, MA market are much appreciated. Generally speaking, it is always nice to see the area receive the recognition it truly deserves. As I do whole-heartedly believe the potential and opportunity in this area are fantastic.
Kindly,
Ryan J