All Forum Posts by: Brian J Allen

There are so many people chasing multis in Central MA it is hard to find a deal.  Best is to find something that is imperfect that you can correct.  Those opportunites still exist, the difficulty is they are not fully rented and need work.  it is a QUEST, the ones that are done are gone in a flash to cash or 25% down buyers with no inspections

Builders typically try to hold their lots and save them so they always have something to build on.  I may be able to find a builder who you can contract to build a duplex and work with your financing.

@Nik Lavoie

You can use the same program every year if you have a viable reason to do so. Perhaps a better house. Perhaps a better commute etc. it has to pass the look test of the bank. As for not listing. There are a lot of landlords who want to sell and not let the tenants know. Tenants do a lot of things to sabotage the few like saying there are mice. Or the toilets never work. They realize rents will go up if the building is sold. Also since things are so hot you might get 50 people walking through the units and it really irks the tenants. Long term owners are often more interested in controlling the close date for tax consequence then in another $5-10k. Also they look to avoid the pain and suffering of a deal not working out. They will work with somebody trust and vett the buyer before considering an offer

NIk,

This is a great plan. As Tom mentions you can buy every 12 months with similar low down payment plans. The difficulty in Worcester is that the best value properties in Worcester are not FHA ready and the sellers dont want to sell to FHA buyers if they can get a 5% down Mass Housing buyer or a 20/25% down buyer. The best way to buy FHA is to go NO INSPECTION or buy OFF MARKET. There are great pockets of worcester that have value and are nice places to live, the key is being able to get to work. There are also some owners who will hold paper on a multi as they want to avoid taxes, this is difficult too, but with the right relationships you can get these opportunities. There is a lot of off market trading in worcester.

I have thought the same thing for years.  Worcester has what is called Zero Lot Line zoning.  This allows these to be sold as 1/2 a house and not as condos, so no condo documents need to be created or anything.  The issue comes 30 years from now when you do your roof and they dont.  There are a couple of these out there that you can put back together if you want.  I also know a builder who has some lots and you could purpose build them for rentals if you want.  Let me know if you are interested in chatting about this.  I am in Worcester almost every day. 

If you are interested in Worcester I can help. Worcester is an interesting market as there are so many distinct neighborhoods and types of tenants. People talk about 1% or CAP rates, but as Russell says above, Yield is a measure of risk. Street by street the risk in Worcester changes. The key is to get the balance that you are looking for. You can get the yields in Worcester, and you can get low risk, and you can get a balance, the key is finding what is right for you.

6% CAP on good stuff, all depends on what you use for expenses

there are more opportunities in 2 Families as most of the money is chasing 3-4 families,  if you can go 5 family you get opportunities as well

most important thing to do is find people who can help you locally, if that is in Lawrence or Brockton or Worcester as the locals know the scene and have been through it and can help you make more timely decisions.  

If you want to look in Worcester I would be glad to help.  if you plan to self manage, the closer you are the better.  There are places in all areas you can self manage, and places close to home where you need to get a property manager.  make sure you are familiar with the areas, in Worcester it changes street to street!

@Ryan O'Leary Worcester is a great central location hopefully we can make something work for you