Investor · Newton Center, MA · Member since 2016 · 3 posts · 2 votes
I've been looking into investment properties in both Worcester and Providence, as these second tier cities seem to yield higher returns than within Boston. That being said I understand that there is a higher level of risk coming with those investments. Does anyone own any rental property in Worcester MA, or Providence RI that would be willing to talk about their experience and the rental market?
San Diego, CA · Member since 2015 · 12 posts · 10 votes
10y
Hello Dan,
First off GO UMASS!! I'm an alumni myself. Do not know much about Providence but I did work in property management and apartment rentals in Worcester for six years. I have met a good amount of investors in Worcester that have done very well within that market. The key is being very selective in what areas you buy in. I would target these areas in no particular order, Burncoat, Westside, Lake ave, Grafton north of Pilgrim, Indian lake, and Highland area close to WPI. There is a couple B-C areas I would go for but I would not recommend them for a newbie to that area. Also I recently sold a property that was in the Holy Cross area that did well for me. If you have the patience to deal with students that is another area to consider. Feel free in emailing me if you have any other questions about Worcester. Good luck to you!
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
10y
Welcome, I don't have any properties in these areas I am in southern RI and live in MA but you have come to the right place for finding people. I know there are a few Worcester, ma and providence investors here. Look into the difference in RI and MA landlord tenant law and see what state you want to invest in. Also do some driving to see the areas in both Worcester and providence there is a wide range of quality and thus rent prices.
If you have not been to a local real estate investment group go to one, Black Diamond is in the Worcester area, there is also a boston REIA. Not familiar with any in RI. I haven't been but some people find they greatly benefit from talking to local investor at these forums.
Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
10y
Hi Dan, welcome to BP.
This is a great place to learn. Make sure to listen to all the BP podcasts, read the articles on the main blog and be active in these forums to learn a ton very quickly about any topic in real estate you want to know more about.
This is also a great place to meet people that can be assets to your business. Lots of great connections all over but we also have a very strong and active contingent here in MA on here so make sure to find them (Set up some keyword alerts to find out about local topics) and get connected.
Besides doing that on here make sure to get out to some of the many local investor events we have. As mentioned if you are looking into RI then you might want to get out to the RIREIG meeting. Definitely check out the Black Diamond meetings. They alternate between Waltham and Worcester. Get out to the Worcester ones if you want to work out there but also go to the Waltham ones to learn and meet local investors since it is the closest meeting to you. Lots of other opportunities to network all over the state but those are probably your best ones for finding people in those areas.
Southbridge, MA · Member since 2015 · 15 posts · 4 votes
10y
My recent tenants tell me everyone wants out of Worcester. Private money lenders in Massachusetts are very challenging to deal with too. Most I've contacted like to stay inside the 495 loop.
San Diego, CA · Member since 2015 · 12 posts · 10 votes
10y
Hello Dan,
First off GO UMASS!! I'm an alumni myself. Do not know much about Providence but I did work in property management and apartment rentals in Worcester for six years. I have met a good amount of investors in Worcester that have done very well within that market. The key is being very selective in what areas you buy in. I would target these areas in no particular order, Burncoat, Westside, Lake ave, Grafton north of Pilgrim, Indian lake, and Highland area close to WPI. There is a couple B-C areas I would go for but I would not recommend them for a newbie to that area. Also I recently sold a property that was in the Holy Cross area that did well for me. If you have the patience to deal with students that is another area to consider. Feel free in emailing me if you have any other questions about Worcester. Good luck to you!
Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
10y
@Account Closed
Both great markets for student housing. Had a number in Providence focus on college. Alot of 3 families. A buddy has 130 beds gets 71K, 50K after expenses per month.
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
10y
The key is to know your markets. I no longer lend in Providence, due to lending infrastructure gaps, but I do lend in Worcester. I do want to know that the borrower knows what they are doing, and I do look at neighborhoods carefully. I ALWAYS visit the property, and I cross check on the location with other investors who know the neighborhoods well. There are certainly areas where the tenant base is more challenging than others.
If you are going to buy in Worcester, or thinking about it,you should start attending masslandlords.net/wpoa/
If you are going to buy in Providence, or thinking about it, you should start attending rereig.com as @Jerrel Almeidamentioned above.
(I am also not difficult to deal with, @Stacy Gilman, although I'm sure there are some that think I am. :-)
My recent tenants tell me everyone wants out of Worcester. Private money lenders in Massachusetts are very challenging to deal with too. Most I've contacted like to stay inside the 495 loop.
Stacy,
can you elaborate more on your comment? "My recent tenants tell me everyone wants out of Worcester"
Flipper · Hopkinton, MA · Member since 2016 · 19 posts · 9 votes
10y
@Account ClosedWorcester is one of the areas I am looking closely at as well. I spent 4 years there for school and it is like any other city: there are areas I would live in nor problem and there are areas Id rather not drive through. My accountant, who does a lot of REI work, mentioned a client indicated Worcester as a great area for investing. It is all in what you know and making smart informed decisions.
Specifically, the Main South area is one I am avoiding. As you go from Park ave toward Worcester State, the area really cleans up quickly. In other words, a few streets down make a big difference. I actually spent a day recently just driving around getting a feel for the area, writing down intersections that were noit great and where they get better. For me, on my first deals, I am trying to avoid areas where a lot of land lording is required. There is plenty to learn in this business without having to learn all the hard lessons at once. If you are interested in college rentals, keep in mind some schools have a lot of on campus housing and most students stay there (Assumption College, for example), where other schools (maybe Worcester State and WPI) have a lot more off campus students. That said, the Salisbury St area is super nice and while you wont get many students, your demographic will be good.
Lets link up sometime, be great to network with people in the same boat.
Professional · Shrewsbury, MA · Member since 2015 · 6 posts · 4 votes
10y
Hi Dan,
I own one property in Worcester and am currently looking to expand to a second. My experience has been good so far. You can definitely find much better cash-flow deals in Worcester than in other parts of the state. I own another property in East Boston. And the rental market obviously isn't anywhere near as rabid as Eastie (and the property is not going to appreciate like Eastie). So you don't necessarily have the same number or quality of tenants to choose from. But, we inherited one vacancy last fall and were able to fill it with a great tenant very quickly at a competitive rent. There is also lots to like about what is going on in Worcester from a development perspective. So I do think there is long-term upside potential (although, I never invest based on that -- its all about the cash flows for me).
I strongly agree with and echo the other comments on here, however, that location in Worcester is critical. And it can literally change by the block. So make sure you are working with someone who knows the neighborhoods if you don't know them yourself. I grew up in the area and have been living in a neighboring town for 3 years and feel like I know central mass like the back of my hand. But, I still don't feel totally confident figuring out the Worcester neighborhoods. I've worked with a very helpful realtor who does a lot of multi-families. I'd be happy to private message you his contact info if you like.
I'd also be happy to grab a cup of coffee or have a phone call sometime if you have more specific questions.
Lender · Portsmouth, NH · Member since 2014 · 15 posts · 3 votes
10y
Hi Mike,
We lend in both cities (all of New England but VT actually). Oddly we have a few borrowers that own properties in both locations right now. Some are doing fix & flips and others buy and hold. We've been targeting both areas of late to lend in because of the strength in market activity. Of course every town has good and bad areas but overall we're seeing great pending and sold comps for 1-4 families in those towns right now and our borrowers have been able to get in and out of our loans through a sale or refinance without issue. Reach out directly if you want to chat further.
Worcester, MA · Member since 2016 · 4 posts · 2 votes
10y
I purchased my first multi family property in Worcester 2 months ago. Originally from Worcester, I moved to Boston for work, but the housing opportunities in Worcester were far to great to pass up. Upon closing I had one Tennant paying under market value and two vacant units. I was able to rehab one of them and had no problem getting it rented for May 1, I did screen through 4 applicants before choosing and had a few more interested. The demand for rentals is high but certainly not as high as a market such as Boston; Bottom line is that there is money to be made and cash flow to be had. I'm planning to have the second unit remodeled and ready for June 1 and will hope to have created a decent cash flow with that rental.
Jeff Strom Thank you for the post! I am interested to invest in the Worcester area as there seems to be no multi families in my area.
Can I please get the contact of realtor you may recommend that does multi family and knows the Worcester area? Thanks!
Real Estate Investor · Allston, MA · Member since 2016 · 14 posts · 4 votes
9y
Jeff Strom and Nayan Patel I am very interested in Worcester property investment. Especially multi family homes and student housing. Can I please get the contacts of the realtor.
I would also be interested in knowing if anyone has a good property manager in the Worcester area they can recommend.
I am also thinking of properties in Springfield. I was wondering what people thought of Springfield and if anyone had contacts of good realtor or property manager in Springfield
Thank you
Investor · Providence, RI · Member since 2016 · 30 posts · 9 votes
9y
@Account Closed
I suppose calling Providence a "second tier" city to Boston might make some sense but I can't understand putting Providence and Worcester on the same level. As said before, there are certain neighborhoods you definitely want to stay away from in Providence but, as a whole, the city only has one direction to go and that's up. The cost of entry in Boston is getting out of hand but there are some great areas in Providence (East Side) that are already solid or about to pop (Fed Hill/West End). Just take a drive the West End and Fed Hill and you can see a ton of properties being totally rehabbed and renovated.
So you know where I'm coming from... I have a 3 family in MA just over the RI border, about 10 miles from Providence. I'm closing on a 2 family on the East Side of Providence near Brown University soon, which I will occupy. I drive all over MA every day of the week for work and comparing Providence to Worcester or Worcester to Springfield really isn't apples to apples. I work in sales for a major manufacturer in the construction industry. I spend on average one night a week in Springfield. I've never looked at the numbers to compare returns. For me, it's all about location. I'd rather have the ugliest house in the best neighborhood than the nicest house in the worst.
At the end of the day, it's all about what your goals are and if the numbers work for you.
Worcester has a myriad of options in terms of investment. Worcester had was tops in the state for deed transfers in 2016. That being said I work in the capacity as real estate agent. Area is key when dealing with Worcester. The Main South area is a tough area, but you might be able to find the "right deal." On the other hand there are other more lucrative areas. The main thing about Worcester is not to get caught in the hype. As more and more people discover Worcester. The home values have increased (may be artificial), but keep your eyes open. Good luck!
Lynnfield, MA · Member since 2017 · 4 posts · 0 votes
8y
I know this thread was from last year so I’m wondering if any of you purchased a multi in Worcester in the last year. I’m looking for a 3 family for rental where the numbers make sense but haven’t seen much out there. For those of you who invest in properties that are more than an hour away, do you hire a property manager?