All Forum Posts by: Brian J Allen

We can also price these buildings per SF. They range from $80/SF for junk to $200/SF for the super good stuff so there is a huge range. Most are in the $110-150/SF range. Also, we can price based on market rents - CAPEX. so a good building with no CAPEX runs about 110X monthly rent. So $1500X3 = $4500 X 110 = $495k. if it needs a roof (subtract $15k) if the bathrooms are poor (subtract $5k per BA) if it doesn't have central heat on the first floor (Subtract $10k). So the pricing is not just CAP Rate, but a more involved construction related pricing. I hope this helps. I have been in 1650 multis in Worcester in the last 4 years and have lots of data on building systems and rents and market prices. When you crunch the numbers you can still find value in this Market.

I would reach out to Bruce Mathieu at IC Credit union. And they are local to Leominster. They also do 80% LTV for portfolios

Still trying to get them out in multiple properties

nature of the game.

I am with Lien on this, but in Worcester we are seeing the number even higher in some cases.  I made an offer on behalf of a buyer where we offered $10k for each vacancy and still ended up with someone on one of the floors.  They simply couldn't get them out with 45 days from offer to close and the $10k incentive.

Very kind of both of you.  Jose I would be glad to help.  Also you should head over to the Worcester Meetup.  There are a lot of like minded folks you can chat with.

it all depends on the condition of the property.  There are places for $500k with lots of deferred maintenance and others that are in great shape.  I would want to have $15k available on most places, but if the roof is older the roof alone is $15k.  Older heating systems can be up to $10k per unit.  The key is to get a place with good bones, so what you are addressing is cosmetics not electrical or plumbing upgrades

Give Wendell Butler a shout.  He is great at working through these low down payment loans.

I agree, do not chase COC. Look for something that has value long term, and incrementally raise your rents. If you spend all of your money fixing things, you will never win. Take a quick look at this.

https://www.biggerpockets.com/...

You should also get Estoppel Letters from the tenants that verify the current state of their tenancy and if they have a last month's rent or security deposit being held.  This helps you to understand where they are at this point in time prior to purchase.

It will be super hard to buy a cash flowing 3 family in Worcester within 45 minutes to Sudbury.  This limits you to the East side of Worcester and there isn't much inventory.  Currently there are 77 multi listings in Worcester and very few, 13 under $400k, and only 4 of them are 3 families.  It is hard even under $450k but you have a shot if you are willing to do work.  The best of these is 30 Esther St, which has NO PARKING, and steps to the first floor for $400k.  at $450k things change a bit and at $500k things change dramatically.  Keep in mind that the cost of borrowing $100k more is in the neighborhood of $500/month and your neighborhoods, parking and size of the property and building change as well which changes the $$$$ you can make.