All Forum Posts by: James Morrison

@Hossam Elaskalani You might want to house hack a single family. An owner occupied multi fam is a great idea but the low down payment makes it hard to get an offer accepted in competitive situations. Are you trying to buy within the 495 belt?

I agree with @Jason Regan. Buying within driving distance to your first investment property is important and you’ll be able to oversee vendors much easier and minimize and mistakes without having to hop on a plane.

@Chris S. Hate to say this but you’ll have to prepare for the worst and for landlords that’s an extension of the moratorium. If your tenant has no plans to pay rent you’ll have to move to evict. There’s an expected tidal wave of evictions to be filed a jam up the courts. I’d get in touch with an attorney and see what they recommend and prepare to get ahead of the tidal wave. I have a friend in your situation that offered the tenant cash for keys to move and they stopped communication with him.

@Alissa Rakauskas I wish more first time buyers did this. You’ll reach your goal so much quicker. I can help you navigate the process. Feel free to reach out with any questions.

@Andrew Sprague Unsolicited vouch for @Brian J Allen as well. Reach out to him as he has great insight on the Worcester Market and ask to join his email list.

@Robert Coulstring If your building why not sub-meter the water and pass that cost onto the tenant as well? Sewer going to be Septic or Town?

Your budget will keep you out of the Greater Boston Market where appreciation would be common but cash flow would be tough. Better for house hacking.

If purchasing in MA your best bet would be Central, MA (Worcester area - which is on fire right now) and Western, MA think I-91 corridor.

Cash flow and some appreciation will be available in some Worcester neighborhoods. Western, MA is pretty much a cash flow play.

I’m not familiar with CT or NY markets. Good luck!

It’s not standard practice yet in the Greater Boston market to pass the cost of water onto tenants because the cost of sub-metering is a significant cap-ex. However, the landlords I’ve talked with that have done so are very happy they did and would do it again.

Required reading if your new to the Worcester Market and thinking of buying. Thanks @Brian J Allen 

@Raisa Penney Welcome to Bigger Pockets!! To make things easier for yourself set up some keyword alerts for our local markets and you'll be able to see what everyone is talking about here in MA

Are your looking to move further away from the city and buy another MF to occupy?  I've helped clients do just that. The Medford and Malden markets have done very well. Nice job!!

@Kati Finneran great points by the folks above. Like you I live in MA so I hope to give you a more local view. 

COVID has caused a supply issue for our MA market. When the stay at home orders were issued in March it caused quite a few folks who were planning to sell (all types of RE) to hold off and wait it out. Resulting in fewer listings than 2019 which has made it even more competitive for buyers. The rise in unemployment nationally has affected our market minimally here in the Greater Boston market.

What town is your multi-fam in? That will really determine its outlook heading into a likely recession. If it's within the 128 Belt your 6-month to 1 year outlook will be fine. 495 belt will be ok as well. Once you get into the Worcesters, Lowells, Lawrences, Fitchburgs, New Bedford, Fall Rivers and Springfields that story changes. Those towns will have foreclosures and short sales that will mostly like cause downward pressure on housing values in those areas. Just like in 2008, they will need to be absorb by the market before prices begin to rise again. 

Finally a benefit for Mult-Fam owners in the Greater Boston Area. Rents rise during a recession around here. 2008 - 2010 saw an influx in renewals for leases. Your rental income should increase in the coming years if you maintain the apartments.

So... go for it and get an offer in before it becomes a multiple bidding situation.