All Forum Posts by: Brian J Allen

Congratulations!  You are not alone in Worcester.  Due to the older housing stock there is huge upside if you buy right.  The key is finding things with upside and having the plan in place.  Currently the vacancy rate in Worcester is about 2% so you will ultimately have tenants.  I think my advice would be to find something where you can add a 1/2 or a 3/4 bath and laundry , as there are so few multiple bath rentals in Worcester that you can command top dollar and get great tenants willing to overpay to have that.  Good luck on the next one.

I will likely be out there today looking at a couple OH multis in Worcester

Malachy, Most of the meet ups are remote.  I go out with a bunch of agents a couple times a week to look at Multis if you want to join.  Usually Saturday mornings, and i can show you around.  reach out off line if you are interested and we can meet up

Sustainable Comfort is great, if you are looking for full service as they have a full time construction arm, that works with rehabs of 3 deckers.

To add to Steven here on #4, don't bet on appreciation in Worcester.  Historically the appreciation in Worcester has come from 2 distinct factors.  1 Rising tide lifts all boats= all real estate went up for MACRO Economic Factors, supply/demand imbalance, Low interest rates, increase in money supply. or 2.  MICRO Economic Factors, and this one is simple in Worcester.  RENTS go up PRICES on MULTIS go up and they almost match.  Rents in Worcester have gone up 30% in the last 3 years at least, which has driven leveraged real estate to go up.  The huge run up on these prices has been a COMBO of both the MACRO- Low supply, low interest rates, and MICRO, the run up in Rents, specifically the increase in SECTION 8 allowed rents.   When buying in Worcester look for 1 LOCATION and 2 QUALITY, these are the long term factors that allow you to ride out the dips!!!!!

Samuel,

There are a bunch of us who go out a couple times a week looking at multis if you would like to join us let me know.  The key in Worcester is to know the neighborhoods and the traffic patterns as that is huge once people go back to work.  Saturday is the big day to do Open Houses to get an idea of the quality you are looking at since most of the houses are over 100 years old and some have had more extensive rehab then others.  Best of luck and let me know if I can be of help in your search.

Brian

that spread is about right.  The key is to buy the neighborhood so you can win on the sale.  The appraisals are hugely dependent on similar comps in the neighborhoods.  Worcester is a street by street city, so if you are off by 3 streets you might not appraise!

I think your purchase price may be a little low. Not much at all under $200k or even $250k. If you go North or west of Worcester maybe you get those numbers but there is not as much demand for the finished product. I think if you shoot for $250k purchase and $325k ARV you are more on target. Yes, these places are old. The key is to pull the appropriate permits from the cities as banks are now looking for those things. I'm out looking at these things every day in Worcester

Jerry,

I see about 5-10 multis a week, over 1100 in the last 3 years.  would be glad to go through a bunch of houses with you and show what we look for in the good and the bad in Worcester to help your education!

Brian

That would be a wonderful addition to the Worcester Rental stock.  Depending on location you could get $2/Month per SF with decent amenities.  If you can keep you construction costs down you can do well.  The biggest issue is land acquisition cost, and construction cost.  Land varies greatly by location in Worcester.  And there are various projects that are in the works which will add to the housing stock in that quality/price point, which is sorely lacking in Worcester.  Feel free to reach out and we can discuss projects that are currently available and others that are in the works in Worcester.  Rents climb each day and people appear to be looking to smaller cities like Worcester that provide location and vibrancy of a bigger city with more space to spread out.