Any Central Mass flippers?

Question

I was wondering if there were any active MetroWest/Central Mass flippers on the forums.  Specifically, I was drawn to the older and outdated properties in the Worcester area (a lot of SFR's seem to be late 70's early 80's vintage).  I was wondering if there were any active flippers and any insight into that market.  From the preliminary research that I've done, purchase prices seem to be within $150k-$200k with ARV's of mid to high $200k's.  Looking forward to connecting with any Central Mass flippers.  Thanks in advance!

Brian J Allen · Answer

I think your purchase price may be a little low.  Not much at all under $200k or even $250k.  If you go North or west of Worcester maybe you get those numbers but there is not as much demand for the finished product.  I think if you shoot for $250k purchase and $325k ARV you are more on target.  Yes, these places are old.  The key is to pull the appropriate permits from the cities as banks are now looking for those things.  I'm out looking at these things every day in Worcester

Brian J Allen · Answer

that spread is about right.  The key is to buy the neighborhood so you can win on the sale.  The appraisals are hugely dependent on similar comps in the neighborhoods.  Worcester is a street by street city, so if you are off by 3 streets you might not appraise!

David Barnett · Answer

@Brian J Allen Thanks for the insight on the Worcester market.  I had a quick follow up question, with those numbers, what would be the average cost of renovation (with the understanding that it is highly dependent).  I might be off base here, and the spread between acquisition, rehab and ARV doesn't appear to be more than maybe $20k at the high end?