Anyone have experience investing in Worcester, MA?

Question

Hi,

I am currently looking to buy my first rental property and since I live next to Worcester I would like to start there (if all of the math works out). I was wondering if there are any investors out there that either currently have properties in Worcester or have past experience with the area. I have been looking on Trulia, Zillow, and Realtor to get a gist of prices and what's available and have also driven by a few prospects this past weekend. I am hoping to buy my first property once I find a house that cash flows well and that I think is a good buy.

Any advice or help is much appreciated. Thanks!

Sean Brennan · Answer

Welcome Lawrence G!  You came to the right place.  There are a lot of experienced investors on here and tons of info.  Like Ann and Mike said, the Black Diamond meetings are great.  Hope to see you there!

Mike Jones · Answer

Yes.  By turn key I mean there is no significant work that needs to be done.  Thanks for the offer but I don't manage for others just my own stuff. The Worc property owners assoc would be a good place to find someone to manage for you.

Lawrence G · Answer

Ann Bellamy - Thanks for the name, I will look for him at the Black Diamond event and will look up the landlord association.

Mike Jones - By turn key do you mean that the house is in good shape and doesn't require any immediate rehabbing to start renting it out? If so, I do not know at this time whether or not the houses I looked at require any work but I am under the assumption that the first house I buy will require some type of fixing up, but I will be trying to stay close to 200k after any rehab. Also, if you run your own property management company, maybe I don't need to look any further for a PM.

Mike Jones · Answer

Lawerence.  $200k at a high level sounds right.  Again depending on the neighborhood it may or may not be a good deal.  Is $200 a turn key price?  Most of what I do is in the college area and I don't like to be into anything for much more than $205-210.  That's after I renovate.  That's a number that cash flows for me.  Ann is right about Worc prop owners assoc, there are some good landlords there.  I know a bunch of those players. We are members but like Ann said there not a savy investor group, more just a bunch of landlords, so I don't attend many of their meetings.  I have my own management company so I can't really give you a good reference. But if you have little experience with being a landlord I highly recommend that you use one!  It's worth the fee all day long.

Ann Bellamy · Answer

Lawrence G, you will probably meet Brian Lucier, the head of the Northern Worcester County Landlord Assn at the Worcester Black Diamond meeting in April, and he is our speaker at the May Worcester event.  He is a very experienced property manager.  Brian focuses further north, towards Fitchburg, though, so if he doesn't work in the area you are buying, he is likely to have some referrals for you.  There is also the Worcester Property Owners Assn.  I don't have any connections in that group, although Brian probably does, and you can google it.

Landlord/property owners assns focus more on landlording issues, and less on buying and selling, as a rule.  So if you are buying rental property, you definitely should check out one or both of these.   They would be good ways, I think, to find a property manager.

Lawrence G · Answer

Ann Bellamy, Sean Brennan, Mike LaCava I have put the Black Diamond event on my calendar and look forward to meeting you all!

Mike Jones - The prices that I have seen have all been around 200k which is fine for me. Also, with the majority of them being triplexes, I feel like there should be some decent cash flowing properties. The only thing that gets me is that the houses I looked at were very old and it was hard to get a feel for the neighborhood just by driving through it because most of Worcester feels old and kind of run down to me. I will definitely try to get in contact with local investors once I find a few properties to focus on. Do you have any experience with propterty management companies in Worcester? I'm still deciding between being a landlord or hiring a PM.

Thanks for the replies!

Mike Jones · Answer

Lawrence.  Worcester is a real interesting market.  Often times comps don't support the properties you are looking at.  The key is to be sure you know the value of the subject property right down to the neighborhood you are looking at.  So many deals happen behind the scenes that its tough to determine after renovated value.  Find some investors that play in the neighborhoods you are looking at and try to network with them.  Might be your best bet.

Mike LaCava · Answer

Hi Lawrence - Welcome to BP.

Ann Bellamy sums it nice for you. Definitely check out the Black Diamond event coming your way. You need to be there and create relationships and Ann is definitely someone you should meet.

Ann Bellamy · Answer

Lawrence, there are many investors in Worcester and surrounding towns in Massachusetts and a few of them are here on Bigger Pockets.  You can do a search for Worcester and find some.  Also, be sure to set your keyword search notifications so you are sent an email when a topic regarding Worcester is posted.

I feel that there are lots of opportunities in the Worcester area, take the time to educate yourself about the market and how much you should be paying for a property.

We also have a free networking event of all real estate investors and associated professions, and our Worcester location of Black Diamond is launching next Tuesday.  Website in my signature.  If you can make it, please come and introduce yourself.

I look forward to meeting you.

Anyone have experience investing in Worcester, MA?

Most Popular Reply