Newbie from Shrewsbury MA

Rental Property Investor · Holden, MA · Member since 2014 · 16 posts · 7 votes

Hello all,

My name is Alan and I live in Shrewsbury MA. Tax-achusetts as we call it here. Other than my current home, which was also my first purchase, I am relatively new to the real estate world. In June of 2014 I jumped feet first into my first dealings with investment properties by purchasing a 3-family in Worcester Ma. Essentially it was a cheap-ish purchase with decent rental incomes.

So far so good. I did have one eviction but the property management team has been dealing with all that fun. I have done a fair bit of research but looking to learn as much as possible from BP. My goal is to build my portfolio over time and ultimately I just want some stable income to support my ever growing family and if all works out, maybe I can pull off an early retirement.

Thanks!

-Alan

1 Reply

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Trevor Western

Investor · Sudbury, MA · Member since 2013 · 12 posts · 8 votes

12y

Hi Alan,

I think we're neighbors. You must have the place at 25 Cambridge Street. I watched them install a new roof on that house this summer. I own the 4 family at the end of Nixon Ave (no 11) at the field. Nixon Ave begins almost opposite your house.

If you see a white van with Red Oak Renovations on the side, that means my son and possibly me are at the house working on it. You're welcome to come down and see the property. We can exchange a few pointers on plumbers, roofers, electricians, city inspectors.

Breens Cafe at Nixon/Cambridge is a great place for a burger, by the way.

Welcome to the neighborhood

-- Trevor

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Ned CareyPro Member
Moderator
Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
12y
Welcome to BP @Alan Lambkin Be sure to check out all areas of the site. Podcasts are particularly popular.
0 Reply
Ann Bellamy
Lender · Tyngsboro, MA · Member since 2009 · 3k+ posts · 2k+ votes
12y
Welcome to Bigger Pockets, Alan. We have an active group of Massachusetts investors, and a growing group living in or investing in Worcester. I've been doing more business there myself lately. You can meet some of them by attending local events. There are two landlord groups that I know of: NWCLA and masslandlords.net, these focus on landlording. The is also my investor group Black Diamond, url in my signature, which has a broader perspective and you are welcome to attend. Keyword alerts help you find topics that interest you, and the search feature here on BP is your best friend for free information. Look forward to meeting you.
0 Reply
Colleen F.Pro Member
Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
12y
welcome, good to have you here. It is a great resource both to learn and share your experiences as they occur. it can help you avoid mistakes or just solidify what you already know. Although I invest in Rhode island I live in Massachusetts also in Shrewsbury. I wish you good luck with your worcester purchase. It is an area I thought about investing in but never pursued. I have seen the investment group Ann mentions also has topics of interest to landlords although I haven't managed to attend.
0 Reply
Erik Peterson
Investor · Franklin, TN · Member since 2014 · 15 posts · 15 votes
12y
Welcome Alan, I know you will find BP to be a great source of support and information. Best of luck to you!
0 Reply
Trevor Western
Investor · Sudbury, MA · Member since 2013 · 12 posts · 8 votes
12y
Hello Alan,
I'm also a newbie investor/landlord in Worcester, having purchased my first 4 family rental house in March 2014. I purchased a very inexpensive property in the Webster Square area with plans to renovate the apartments one a time. I just finished the second apartment renovation last week, and helped the tenants move in this weekend. The house is now having positive cash flow for the first time!
Where is your rental house located? How are you locating tenants?
Welcome to BP!
0 Reply
Kristopher K.Pro Member
Investor · Walpole, MA · Member since 2011 · 136 posts · 20 votes
12y
Welcome @Alan Lambkin . I have Worcester in my search area for my next project. I've been to the Black Diamond events @Ann Bellamy mentioned, they're great! Great information and local networking. Set up some keyword alerts and get ready to read.
Congrats on diving in and good luck!
0 Reply
Marcia Maynard
Investor · Vancouver, WA · Member since 2013 · 3k+ posts · 4k+ votes
12y
@Alan Lambkin Welcome to Bigger Pockets! You will find great support here as you build your business. Check out the Learn tab to get started. Use the "search the site" function at the top right to zero in on topics of interest. Don't be afraid to start your own topic either under Forums by asking a question. Be prepared for the candid responses, good tips and crazy ideas, as well as little good natured fun. All the best to you!
0 Reply
Alan Lambkin
OP
Rental Property Investor · Holden, MA · Member since 2014 · 16 posts · 7 votes
12y
Thank you all! I have lots to do and read so far and look forward to reading through it.
Trevor, I also purchased a property a few steps away from the heart of Webster Square, right there on Cambridge St. Thankfully it had positive flow right away, but it does need a bit of work inside and out to bring in a bit more on the positive side.
0 Reply
Trevor Western
Investor · Sudbury, MA · Member since 2013 · 12 posts · 8 votes
12y
Hi Alan,
I think we're neighbors. You must have the place at 25 Cambridge Street. I watched them install a new roof on that house this summer. I own the 4 family at the end of Nixon Ave (no 11) at the field. Nixon Ave begins almost opposite your house.
If you see a white van with Red Oak Renovations on the side, that means my son and possibly me are at the house working on it. You're welcome to come down and see the property. We can exchange a few pointers on plumbers, roofers, electricians, city inspectors.
Breens Cafe at Nixon/Cambridge is a great place for a burger, by the way.
Welcome to the neighborhood
-- Trevor
2 Reply
Brian Ortins
Real Estate Agent · Beverly, MA · Member since 2013 · 353 posts · 93 votes
12y
Welcome to BP, @Alan Lambkin
I haven't dealt with any multifamily purchases in Worcester, but do invest in Leominster area. I would be interested in your experiences in Worcester, as the properties I did research/view, I was not interested in the neighborhoods. What areas do you prefer to invest in?
0 Reply
Frankie Woods
Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
12y
Welcome to the family! This is a great community with a ton of knowledge. Congratulations on jumping into R.E. This site will can only help you grow your business.
0 Reply
Shaun Reilly
Landlord and Rehabber · Newton, MA · Member since 2010 · 2k+ posts · 877 votes
12y
Hi Alan, 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. Most things are more east but you have the Black Diamond meeting in Worcester that is a must go to for you. Since you are looking at buy and hold there are a couple landlord groups based in Worcester County as Ann mentioned, I have not been but I especially hear good things about the NWCLA. If you want to come more east there are lots of options near Boston as well as North and South of the city.
0 Reply
Dmitriy Fomichenko
Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
12y
Welcome to BP community @Alan Lambkin It is a great place to meet new friends and learn about various aspects of real estate and more.
Wishing you the best!
0 Reply
Dave VisayaPro Member
Moderator
Audio Engineer and Investor · Cebu City, Cebu · Member since 2013 · 7k+ posts · 881 votes
12y
Hey @Alan Lambkin welcome to BP! It's great to have you!
0 Reply
Alan Lambkin
OP
Rental Property Investor · Holden, MA · Member since 2014 · 16 posts · 7 votes
12y
Just to give a bit more info around my first REI, and I would be the first to say I had no idea what I was doing and I maybe made some mistakes.
Anywho... I was sitting on too much money, yea there's a problem. My last employer compensated me well, but bonuses and extras were always in stocks. With almost all of my available capital/savings sitting in risky stocks I decided to cash out an amount to cover a down payment.
From there I zillow-ed my two local big towns, Worcester and Marlborough. I'm sure there are other good markets in Fitchburg or Leominster, but I didn't want to over-do the homework and retire in 30 years still doing the research :). The price point I was comfortable starting into was 150k to 200k. With the props I found and my agent brought to my attention, several had positive income with tenants already in place. Well that sounds easy enough, so I pulled the trigger and bought one at 199k. I financed 75% and got a kill rate at 3.6% 7/1 ARM. I figure rents will go up and cover any interest rate hikes...
My only real criteria for the purchase were a decent inspection, finding no major issues, it had a large amount of square footage, and good income potential right out of the gate. I didn't know about all these formulas that I'm hearing about, or analyzing neighborhoods, demographics, etc.
Once I'm comfortable I plan on going through the process again. Any suggestions would be appreciated.
thanks!
-Alan
0 Reply
Eric Dubrule
Investor · Leominster, MA · Member since 2013 · 54 posts · 5 votes
12y
Hi @Alan Lambkin - Im interested what the #'s look like on the rental property in Worcester. How many beds and units and monthly rent. I invest in Fitchburg and maybe will in Leominster in the near future. I'd like to look to Worcester potentially, but need to do a lot more research on neighborhoods and market rents before pulling trigger there. I'll share with you 2 recent fitchburg purchases. 160k purchase with 6k in repairs gets roughly 3,100 in monthly rents. 163k purchase gets roughly 2,500 in monthly rents. C class neighborhoods and tenants though. Look forward to hearing from you.
1 Reply
Alan Lambkin
OP
Rental Property Investor · Holden, MA · Member since 2014 · 16 posts · 7 votes
12y
Hi @Eric Dubrule
The property has 3 units, roughly identical, with 3 bedrooms, 1 bath, 1100 sqft each. I purchased it for 199k, with monthly rents at $2650 currently. I plan on making a few updates very shortly ranging from 5-10k, but primarily cosmetic changes to start. At that point I hope to bring in 3k a month by this time next year.
With my limited homework, it seemed as though rentals were going for about $1 per sqft. And I did not see many that were staying on the market for long.
-Alan
0 Reply
Eric Dubrule
Investor · Leominster, MA · Member since 2013 · 54 posts · 5 votes
12y
The numbers sound good. Best of luck over the next year making the improvements and getting the rents up! Sounds like you have a good plan. Best of luck.
0 Reply
Justin SilverioPro Member
Developer · Andover, MA · Member since 2008 · 1k+ posts · 489 votes
12y
Hey Alan - Welcome to BP. That's awesome that you may have already met an investor neighbor next to your multi. The power of BP is already at work!
Best of luck with your multi and be sure to attend some local events and stay active on BP.
Podcast Guest on Show How to Easily Find Off-Market Properties (No Experience Required!)
1 Reply
Samuel Getant
Commercial Real Estate Broker · Worcester, MA · Member since 2014 · 38 posts · 6 votes
12y
Good Job on picking up that multi Alan,
@Eric D. which area of Fitchburg did you invest in?
0 Reply
Brian Lee
Investor-Realtor · Union, NJ · Member since 2013 · 48 posts · 4 votes
12y
Alan, Welcome Welcome!
0 Reply
Josh Kabage
Real Estate Investor · PLANO, TX · Member since 2014 · 6 posts · 2 votes
12y
Hi @Alan Lambkin glad to know that the Worcester multis are viable and can generate income. I am interested in multis and have been researching the Worcester area for my first acquisition. What I am finding is that there are quite a bit of them out there and I need to dig deeper (with the help of an agent possibly) into some of them and see which ones make sense. Your post is very encouraging :)
0 Reply
Eric Dubrule
Investor · Leominster, MA · Member since 2013 · 54 posts · 5 votes
12y
@Samuel Getant Oliver Street, West Street and Thomas Street in Fitchburg. Are you familiar with the Fitchburg market Samuel?
0 Reply
Brandon TurnerPro Member
Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
12y
Hey @Alan Lambkin welcome to the site! It's great to have you!
Podcast Guest on Show #92
0 Reply
Sihao Cao
Homeowner · Marlborough, MA · Member since 2014 · 36 posts · 6 votes
12y
Hi there @Alan Lambkin . Great to see you on the BP forums. Similar to you, I myself is also a new member to BP. But unlike you, I am still learning this field and would like to purchase a multifamily rental property in the metrowest/worcester area in the future.
It's also good to see that you are based out of Shrewsbury, which is near me as I live in Marlborough. Perhaps we will have a chance to meet up one of those days in the future.
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