All Forum Posts by: Brian J Allen

Nick,

Welcome to BP.  First and foremost remember that Worcester's Geography is Hyper local.  Figure out the neighborhoods and the traffic patterns before you buy/invest.  If you are going East for work, plan accordingly.

There are a lot of opportunities in worcester.  I just went by a house today where someone bought a SF home for $141k on may 23, 2019 and just put it on the market for $319k . I saw it in April and it was a mess. Due to location it is likely worth closer to $280k, but there are opportunities.  Make sure you know the neighborhood.  I think these guys thought they would have a different buyer with the rehab they did.  There definitely are neighborhoods in Worcester where the $320k for this house is a slam dunk, but just not this one.  Make sure you add a bathroom as there are so few places with 2 BA that it stands out.

sounds like a great plan!  i would pre rent the place a month prior to completion so you get better tenants.  look forward to seeing the progress.  

I think $1600 is probably the rent there.  but if you have a new heating system and super clean bathrooms you will get more.  The 2nd bathroom is huge in worcester.  One of the big factors is the rating of the elementary schools in worcester as there are 35 of them and some are rated better than others.  This will determine who you should market to.  If you can stick a driveway in somewhere that is big as well and it will improve your tenants.  

@Woodly Tisme . I echo Colleen on this.  Make sure you know where you are in relation to what you are investing in.  Your ability to do work or manage the property is often dependent on your location.  The further away the more you need to rely on others.  Im close to both Worcester and Woonsocket, RI, but i choose Worcester as i am there more often and i have better networks in the area.  I do think the price point in Woonsocket is Better, and you may make more money year over year, but MA historically does better than RI in terms of jobs.

Art, Great stuff here.  Stats serve to validate what you see in the market, and also to open your eyes to places to invest.  AS you know they should not be the be all and end all.  What the data doesnt tell you is that people in metro Springfield, and metro worcester are willing to accept lesser rental conditions then in the more affluent areas.  the quality of the units in worcester pale in comparison to those in Boston.  You also find more TAW then Leases in the areas with the higher numbers so you need more active management to protect your investment.  Once again Great data

This is a great question.  I would chime in here that all real estate is local.  When you are buying older properties, you have to have a full fledged team.  Acquisition, maintenance, repair, rehab and property management.  It is much easier to make money and have success if you are closer.  I think all 3 have the ability to succeed.  I would add a couple more in there as well, Springfield, Lowell, Lawerence, Hoyloke as big ones.  The reality of it is you need to know your market or have people you can trust to get you fair pricing on all the work you are doing and make sure you are in the right neighborhoods and have the correct tenant mix who can pay and respect your property.  This is a great Thread to keep going.  For the record, I LIKE WORCESTER because I am local and know the market.

The small single family market in worcester and surrounding towns is seeing a price decline, and due to the typical weather trends in sales, there will be some dips.  There are a lot of houses that people simply dont want to hold through the winter.  The key is working with someone local and finding those.  there is upside on the house hack front as you can get appreciation as well.  it is much easier to find appreciation on a SF house then on a MULTI

It gets you a better tenant in Worcester to have "real" heating systems, but rents will not jump automatically.  it is best to do it as a larger project. Figure $8-12k per floor to put in heating systems.   If you improve the bathrooms, and if you take the "galley" kitchen and put the sink in the actual kitchen, those make a big difference in the flow of the unit and make it more attractive.  Also if you are able to provide laundry (NOT IN THE KITCHEN) and parking you have a much better product.

@Andrew Schulz

Worcester is an interesting town. When you know people jobs are everywhere. When you don’t it is hard. I’m in Worcester every day let me know if you want to meet up. Some jobs are not fun but they are out there for people who show up on time. Dressed appropriately with a desire to learn.