All Forum Posts by: Brian J Allen

Worcester 3 Deckers are HYPERLOCAL. Some places are going up for fundamental reasons, others are going up due to momentum. The key is to know what you are getting. Though ground up construction and commercial construction are almost as expensive as Boston, maintenance and repairs are less as there are more tradespeople available to do work at lower cost. Three deckers have hit the $500k mark, 27 Shamrock will sell in the next couple of weeks over $500k, with market rents at $1500 X 3 for $4500 Gross Monthly rents. This works to about an 8 CAP. That is the new norm in worcester. With low vacancy in most areas, things look like if interest rates remain low, it will continue. Worcester Red Sox open up Spring 2021

The Worcester market has experienced a very big jump in multi family pricing for properties that don't need rehab. Some properties of note, 27 Shamrock is selling for $520k CASH in the next couple of days. 3024 SF so $172 per SF, There are also another 5 that may break the $500k barrier as well in the next month. 132 June st, 15 Breck, 21 King, 73 Merrifield, and 166 Fremont. These are solid places in good condition and they will likely all be around 8CAP. There was an open house this weekend at 14 Tatman St, where there were over 100 people there (buyers + agents) to see a place priced at $280k for 2310 SF which would be $121 SF, I believe it will sell for $335k or more for $145 SF. with the existing rents this would be a 5.6 CAP, if rents were market at a little over $1000 per unit, it would be a 7.7 CAP.

i think it is always important to do live education in regards to real estate.  If you go see places and the quality and what the rental rates are in an area it will help.  Worcester is neighborhood by neighborhood.  Just by driving around you can see which areas get higher rents and why.  And the more places you see the more you understand what properties are good and bad, and why there is such a price differential

Good Buy in Worcester, you are also going to have some appreciation due to additional quality units going up in the neighborhood.  The key in buying in Worcester is to have Quality Units as people are willing to overpay for rentals if they are nice!!!

The key to worcester is the Neighborhoods.  Different areas get different rents for a myriad of reasons.  The geography of worcester with its hills, and the snow are big determiners of which neighborhoods people choose.  there is still the opportunity for rental appreciation in some areas, some may have reached their short term peaks in terms of rents as the median income in worcester is $45k,  how much can they pay for rent.

Make sure you are comfortable with the condo situation in any townhouse you buy (Worcester in Particular). In Worcester they have what is called ZERO LOT LINE where you can share common walls with someone but everyone is responsible for their own exterior maintenance and roofs.  You can drive neighborhoods in worcester where 1/2 of the house has a new roof, and the other 1/2 does not.  you will also see everyone with different front doors and even different windows.  Make sure you know how things are deeded.  Also, make sure you have a home inspection as there are different levels of new construction.  See if you can get an idea of what the other rents are in the project.  Best of luck Worcester is very different from other places in projects like this.

it is good to learn  and experience real estate investment in the lowest cost method possible.  if you can live there, you can make a lot of mistakes without feeing as much financial pain.  if you can buy a smaller property, you might not have as much upside, but you can improve your property for less money.  The most important thing is to surround yourself with people who are willing to provide you with honest advice. Find the right neighborhood first as all real estate is local, then work from there.  Does the house need cosmetics, or real work (plumbing/electrical/structural) . there are many choices for the cosmetics work, so you can get better pricing. If you need a license to do the work like electrical or plumbing, your costs go up, since it is expensive to get those skills.

Make sure you find people who are local to where you want to purchase.  it is best to owner occupy if you can get to work from the property location, this gives you better income as you are not paying rent, and better terms on the loan and insurance.  I like worcester because i am there every day.  Figure out the radius you are willing to go to invest then find local agents in those areas that work with investors.

@Ed Maione have your agent reach out to me. I’m sure we can work together to find you something

Looks beautiful!  Congratulations.  I echo the concept of LOCATION here.