Anyone else super frustrated with the MA MF housing market?

Boston, Massachusetts
Boston Real Estate Forum
10yFollow

Anyone else super frustrated with the MA MF housing market?

Justin Bioc
MA 路 Member since 2015 路 11 posts 路 4 votes

Mostly looking to vent and see if other people who are investing in the area are feeling the same sentiments. Been looking for a while now for a MF property to house hack my way in real estate, but homes are low in inventory, way overpriced (and over paid for), and generally poor quality. I get anxious being that person that never gets started, but I can definitely see how much of a mental exercise making your first deal is. Thanks for reading :) Any suggestions/tips/frustrations appreciated.

1Reply
63 views

Most Popular Reply

Russell BrazilBusiness Member
Moderator
Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
10y

I think a lot of people on the site that live in expensive areas think that prices are overpriced. But that is simply the market. 10 years from now, that extra 10, 15, 20k you have ti pay now will likely not be a significant amount. I just sold a multifamily in Chelsea, that some other BP members felt was over priced...but it met the 1% rule and like likely make the next owner a lot of money just like it did for me.

Time is the greatest ally of the real estate investor.

[email protected]301-893-4635Podcast Guest on Show #192
District Invest Group545 Reviews
WebsiteView Page
3Reply
See this reply in the discussion

30 Replies

Jump to latestLatest
  • Charlie MacPherson
    China, ME 路 Member since 2014 路 3k+ posts 路 4k+ votes
    10y

    Hi Justin.  You're right about inventory and it's the same for SFRs.  I put an offer in for a client 2 weeks ago, where with our escalation clause in force, we were $7,500 over asking.  We were outbid.

    If the property is selling with standard lender financing (FHA, VA, USDA, etc), there is a substantial risk that these over-paid properties won't appraise. Stay in touch with the seller to see if the deal blows up due to the failed appraisal. You might be able to scoop the property up at that point.

    I do have an investor-friendly agent in Melrose I can connect you with.  Message me if you like.

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
    10y

    I think a lot of people on the site that live in expensive areas think that prices are overpriced. But that is simply the market. 10 years from now, that extra 10, 15, 20k you have ti pay now will likely not be a significant amount. I just sold a multifamily in Chelsea, that some other BP members felt was over priced...but it met the 1% rule and like likely make the next owner a lot of money just like it did for me.

    Time is the greatest ally of the real estate investor.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    3Reply
  • Logan AllecBusiness Member
    Accountant 路 Los Angeles, CA 路 Member since 2014 路 1k+ posts 路 980 votes
    10y

    @Justin Bioc, are you looking to use FHA financing? It will be even tougher for you, but it is possible. I recently closed on a fourplex in the Los Angeles area using FHA financing. It was a long time coming, but definitely worth it. PM me with any questions about buying FHA 2-4 units in an expensive market.

    Clarita CPA Group516 Reviews
    WebsiteView Page
    1Reply
  • Steve Bracero
    Real Estate Agent 路 Westboro, MA 路 Member since 2016 路 1k+ posts 路 471 votes
    10y

    Welcome @Justin Bioc

    I am also looking for Multi family properties in Mass. It is difficult but most of the deals on the MLS are not deals... It takes time finding the deals

    0Reply
  • Mike Duran
    Real Estate Broker 路 Worcester, MA 路 Member since 2015 路 84 posts 路 38 votes
    10y

    Hi @Justin Bioc . I suggest you head west out to worcester, thats about the closest place you can find a good cash flowing multi on the market besides maybe lowell. If you are looking for a deal I agree with @Charlie MacPherson in saying you should find an investor friendly agent that knows the market. I would be happy to help as well, feel free to send me a message if thats what you want.

    2Reply
  • Joshua PoitrasPro Member
    Real Estate Agent 路 Lowell, MA 路 Member since 2015 路 187 posts 路 67 votes
    10y

    I agree with all, it seems that foriegn buyers saturated the greater boston market and are paying whatever to have real estate here. (that tells you something). 

    going out west seems to be the alternative. 

    0Reply
  • Joshua PoitrasPro Member
    Real Estate Agent 路 Lowell, MA 路 Member since 2015 路 187 posts 路 67 votes
    10y

    also sellers seem to be holding fast. itll be interesting to watch market over next two years (appreciation wise)

    0Reply
  • Marian Smith
    Real Estate Investor 路 Williamson County, TX 路 Member since 2011 路 1k+ posts 路 961 votes
    10y
    Warren Buffet changed focus mid-career or so to favor paying fair prices for excellent businesses. I broke even every year at tax time on my first rental for years but time eventually worked in my favor. Not saying Boston isn't overpriced...just saying you may need to adjust expectations and think longer term in deciding if a property is an excellent business (location) and what price is fair...or too high. Boston is a pretty desirable place.
    1Reply
  • Joshua PoitrasPro Member
    Real Estate Agent 路 Lowell, MA 路 Member since 2015 路 187 posts 路 67 votes
    10y

    are any Lawrence, Haverhill, Methuen, lowell, or north andover thinking aboit selling a multi family privately,

    I have a buyer who just cant seem to find one. 

    0Reply
  • Carmen Frias
    Rental Property Investor 路 Methuen, MA 路 Member since 2016 路 18 posts 路 4 votes
    10y

    Properties in Lawrence and methuen have high prices at the moment but you can still find ok deals in haverhill, although rents there are a bit lower.

    0Reply
  • Stefanie Willie-Bonglo
    Real Estate Broker 路 Atkinson, NH 路 Member since 2015 路 92 posts 路 24 votes
    10y

    I am selling a Haverhill 2 family that I bought 2 years ago, the closing is Thursday- Yay! We were able to make a great rental income and profit on this property. It was under contract within 48 hours of putting it on the market. For those of you  searching in the area, I know it's tough to change your mindset, but it's a sellers market in Haverhill area right now, I would look elsewhere as suggested above. Good luck!

    0Reply
  • Flavio Zanetti
    Investor 路 Andover, MA 路 Member since 2015 路 269 posts 路 67 votes
    10y
    Russell Brazil would love to know which property you sold since I do follow Chelsea's market everyday and the good properties would not last a day - I looked at 4 John St (offer in less than 24 hours) I am also looking at properties in Lynn and the same is happening they are getting offers right on the same day or day or two after being on MLS... Also frustrated that multifamily homes around the Boston area are not easy to come bye. Even if you look more north like Lawrence or Haverhill situation is not much better with a much more difficult clientele to manage in general. Search continues...
    0Reply
  • Steve Bracero
    Real Estate Agent 路 Westboro, MA 路 Member since 2016 路 1k+ posts 路 471 votes
    10y

    @Flavio Zanetti

    The market is very tough in this area... I am looking more towards Worcester County and the search is difficult.. Daily just keep looking for leads and eventually the process will lead you to the result of new properties 

    0Reply
  • Ellie T.
    Investor 路 Boston, MA 路 Member since 2016 路 73 posts 路 18 votes
    10y
    I actually gave up on investing in MF in MA and ended up investing out of state. The returns are way better and more than cover the property management costs in other parts of the country.
    1Reply
  • Flavio Zanetti
    Investor 路 Andover, MA 路 Member since 2015 路 269 posts 路 67 votes
    10y

    @Ellie T., where are you investing now? NH? RI? Or far out of state?

    0Reply
  • Ellie T.
    Investor 路 Boston, MA 路 Member since 2016 路 73 posts 路 18 votes
    10y

    Ohio and Florida.  Looking at RI but haven't found anything I liked yet.

    0Reply
  • Eric P.
    New York City, NY 路 Member since 2016 路 470 posts 路 348 votes
    10y

    @Ellie T. Where in Ohio?

    0Reply
  • Flavio Zanetti
    Investor 路 Andover, MA 路 Member since 2015 路 269 posts 路 67 votes
    9y

    Bump to resuscitate this thread - interested to know where in Ohio as well... 

    0Reply
  • Eric P.
    New York City, NY 路 Member since 2016 路 470 posts 路 348 votes
    9y

    It's tough to find good MF deals anywhere in the US rt now (record # of RE investors combined with lmtd supply of MF) except places with bad economies. There's way more investors than MF available in most gd cities. Luckily there's more SFR inventory than investors in most places

    0Reply
  • Luis Capriles
    Investor 路 Lynn, MA 路 Member since 2015 路 66 posts 路 19 votes
    9y

    I have a two family n lynn 46 bulfinch st lynn ma , 6 rooms , 3 bath for 350,000

    0Reply
  • Karen B.
    Boston, MA 路 Member since 2017 路 11 posts 路 6 votes
    9y

    you dont have to buy where you live

    0Reply
  • Chris Stewart
    Middleton, MA 路 Member since 2017 路 6 posts 路 0 votes
    9y

    True but I thought for your first one buying locally would help with learning process.  I bid on a property being sold by owner in Lowell.  Up as a two family but actually had 4 units in it.  Two were not legal but the numbers worked really well so felt it was worth a punt.  My bid was about 20k (360k)under asking to give me some room (2 % cash on cash) if the illegal units couldn't be made legal.  I left the process after the sellers lawyer phoned up to say that they had already received a bid for 405 and did I want to increase my bid馃榾.

    Weird how worried/nervous I was about them accepting my offer and at same time refusing it.  Glad overall I stuck to my criteria.  Looking for another deal now.  I think they are there but as others say they need work to find them 

    0Reply
  • Katherine Robbins
    Interior Decorator 路 Barcelona 路 Member since 2016 路 75 posts 路 60 votes
    9y

    It is definitely a sellers market and is over saturated with investors, flippers and out of country buyers. People have the money in MA to overpay and no one even bats an eye anymore when someone offers all cash, no contingencies. I think your best bet is to look at the market trends for the lower end neighborhoods and see which is trending upwards. As an investor, flipper and Realtor - I would suggest Chelsea, Lynn, Revere, Everett and go north from there. Try to get a 203k loan and find a fixer upper. You'll have a contractor set the budget and you'll be following the direction of the bank so it's relatively easy to do and you'll be able to design it the way you want. Plus you'll buy something under market value and have instant equity. It's definitely hard to find properties but look outside the box and try to find something off market - send out letters and contact homeowners who live out of state. And always use a Realtor as a buyer! You don't pay any fees or commissions to them on the buy side, the seller pays it all. Just find one who is investor friendly. 

    0Reply
  • Eric James
    Investor 路 Malakoff, TX 路 Member since 2017 路 2k+ posts 路 2k+ votes
    9y

    I looked into house hacking a few years ago....until I saw the rent:purchase price ratios. I knew I wasn't going to be in this area long term, so I kept my capital (and added to it). Now I've moved away and am preparing to purchase multiple properties. I don't have any advice, other than get out.

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent 路 Washington, D.C. 路 Member since 2012 路 17k+ posts 路 30k+ votes
    9y

    No one is over paying. You just have to adjust your expectations to what peopke are willing to accept in a near zero interest rate environment.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free