All Forum Posts by: Brian J Allen

Once things hit the MLS in Worcester they are typically out of reach for most people. The agents in Worcester know the other agents that do Multifamily and have their own buyers who they offer the houses to first. If the seller is reasonable the house will never hit the MLS because the sellers don't want the circus and don't want to bother their tenants. You need to buy them before they hit the MLS and all of that is done on a local basis. House Hacking can sometimes work better as people are open to roomate situatations since there are a lot of graduate students who just simply want a room of their own.

Worcester Rents and prices are up. Keep in mind with FHA you will likely have to outbid other investors to get an offer accepted. FHA buyers can only pay appraised value. Investors are able to pay above appraised value so they have an advantage.

you can REFI with a commercial bank and they may allow you to get to 80%LTV but you will have a 5 year reset, there are banks local to Worcester that are willing to do that. The other thought is to Do a refi, keep you equity in the property and try to get a HELOC and use that money as cash. Just a thought. Make sure you have good comps for your property both on sales and rents when you apply to the bank so they know what value you place on the 3 decker. There are 3 deckers going from $400k to $500k but the RENTS are KING on the REFI

Congrats on another one!

All, I was just re reading these posts this AM. There is a lot of upside to Worcester County and there are deals in all of these towns. The key is to know your market and work with people who know the market. I mainly focus on Worcester and down RT 146, if I don't know the town, I refer my clients out. That way you avoid the issues with street by street. Keep in mind that these areas are really small towns, even Worcester. Most of the multifamily deals are going on behind the scenes so that people can do 1031 exchanges and move up to bigger properties. You need to be dialed in with locals in the markets you want so that you can get a shot before things hit the MLS. Once they hit the MLS the nicer ones are bid up by owner occupants who don't mind overpaying by $10-20k. Once again there are lots of opportunities in Worcester, MA. But you need to be educated and ready to make decisions very quickly to get the good deals.

The properties in Worcester, MA are generally old. 49% were built prior to 1939 and 73% were built prior to 1969!! some have had work done, but most have been rehabbed in a patchwork pattern which is not good. Those who are able to rehab for the long term have a great opportunity to eliminate their CAP-EX and have healthier more modern units that everyone likes to rent.

Alex, I do recommend investing where you live until you are ready to branch out.  I think there is sense of confidence that you know the neighborhoods and you don't have to rely as much on others.  There are always local deals if you work hard enough on your network.  If you decide to come out to Worcester, MA. let me know and i will get you the full lay of the land, both from the geographic side and the economics of Worcester rents.

I echo these sentiments.  All real estate is local.  And the good agents have contacts who are property managers and vice versa.

Nicholas,

This is always the first thing investors ask. Do I go somewhere with lower cost of living and get more bang for my buck, or do i invest near my house. It all comes down to your personal risk tolerance and trust of others. I have a condo in AZ that i havent seen in over 10 years, and it makes me a little money. Personally, I would like to 1031 it back to Worcester, MA where I work, but that has costs as well. There is a ton of stuff in Northeast CT with great returns which is still close to MA, and close to Worcester, but you need to figure out why you pick an area. Population Growth, Economic Viability, Historical Investment returns? what are you looking for most? Or is it just about the CAP Rate.

Northeast CT can get you cash flow, Worcester will get you some appreciation with your cash flow.  It all comes down to risk, and if you are going to manage it yourself location is HUGE