Western Mass / Holyoke Multi Family Investing

29 Replies

Hey All,

I hope everyone is doing well. I'm a 21 year new investor and I'm looking to start of with multi family properties for cashflow. I currently live in Newton, MA and the prices around here are crazy for multi family homes. Some starting from $800,000 just for a 2 family! Currently my credit score is 750+ and I have around 10,000k I've saved so far for R.E. investing. With that being said I've been looking at areas in western mass like Holyoke & Springfield where multifamily prices are more affordable for me to start small. If possible I'd like to hear about investors experience about investing in these two areas. It would mean a lot to me!

Best,

Mike 

Micahel (or is it Michael)?,

Kudos for beginning your path to real estate investing. What are your goals though? And have you been to/driven around/talked to the locals in Holyoke/Springfield yet? If not, that would be a good first step

Micahel Evans I recently picked up a 2 Family in Springfield. I live in Boston area, but had taken a number of trips through Springfield and felt comfortable investing there. Cash flow is great in the area. I'm definitely not counting on appreciation. A lot of properties are deleaded which is huge. Many section 8 tenants (one of my tenants is section 8, great tenant). A lot of 10+ cap rate properties on the MLS. Not familiar with all neighborhoods in Springfield, but you'll definitely want to drive around, check crime maps, etc...

I'm still looking for a good agent that I trust to begin making offers on a few more out there.

Let me know how you progress. If you ever want to meet up out there in Springfield when I'm there, I'd be more than happy to do so.

Originally posted by @Andrew Laing :

Micahel Evans I recently picked up a 2 Family in Springfield. I live in Boston area, but had taken a number of trips through Springfield and felt comfortable investing there. Cash flow is great in the area. I'm definitely not counting on appreciation. A lot of properties are deleaded which is huge. Many section 8 tenants (one of my tenants is section 8, great tenant). A lot of 10+ cap rate properties on the MLS. Not familiar with all neighborhoods in Springfield, but you'll definitely want to drive around, check crime maps, etc...

I'm still looking for a good agent that I trust to begin making offers on a few more out there.

Let me know how you progress. If you ever want to meet up out there in Springfield when I'm there, I'd be more than happy to do so.

I really appreciate you telling me about your experience investing in Springfield. I will definetly keep you touch when I head out there to look at some properties. Is there also an investment meet up group in the city there?

Originally posted by @Angel Dejesus :

Awesome saving up money. I've been looking around Springfield and Agawam. Pm me sometime to discuss what are your priorities in investing.
Currently looking for 10 plus units

 Thanks Angel. I'd love to talk more, I'll PM you

Originally posted by @Joe Schmoe :

Micahel (or is it Michael)?,

Kudos for beginning your path to real estate investing. What are your goals though? And have you been to/driven around/talked to the locals in Holyoke/Springfield yet? If not, that would be a good first step

 Thanks Joe. I haven't been there yet, but plan to head out there soon to check out some neighborhoods. 

@Dedric Polite and @An Duong ,  I've made several offers here in the past 6 months.  I had a package deal for several 3 families, but had to back out due to some concerns dealing with the seller. I've offered on everything from smaller multi families, bids on single families via online auction, and larger apartment complexes.  I've had a good experience with the 2 family I purchased almost a year ago, so I plan to keep offering to add more units.  Looking for 10+ cap properties using conservative numbers, so definitely losing out on deals because of that. 

Where is your 3 fam located An Duong?

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I used to live in Chicopee and didn’t really mind the area. I left right as construction was starting on the casino. Has anyone there seen the area pick up since that has finished?

Chicopee is thriving @Justin Reed , inventory is extremely low but there has been a surge in buying; specifically 2-3 families. Myself and a business associate own/manage a handful of properties in the area...If you have any questions or are looking for more information don't hesitate to reach out

@An Duong is right on the money. There is evidence of a substantial reduction in the opportunity to pick up 8+ units out in the Springfield area. Market is saturated with 2-famalies but not much else

@Dedric Polite if you are looking for reliable representation out in the Holyoke market, don't hesitate to send me a message. I'd be more than willing to work with you and provide assistance in any way possible

@Ryan Jopson helping me out with a deal for 28 units in Holyoke right now.  Definitely learning a lot through this process and will learn even more after we close (knock on wood).  I should be in Western Mass a decent amount over the next month or so.  I think it would it be great to meet up with some of you investing and interested in investing in the area.  

@Dedric Polite These are old homes/buildings, so as far as due diligence goes, the lead and asbestos are something you have to examine.  Also, many of these tenants in a number of the deals I've looked at have not paid security deposits, so just be aware of this.  Many Section 8 tenants as well, just an FYI.  

Insurance premiums are on the high end because the replacement cost is much higher than the purchase price for these deals, so make sure to include this in your expenses when figuring out your offer. Section 8 tenants raise the rates as well.  

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