All Forum Posts by: Brian J Allen

@ernest partin PM me and we can get together.  i agree with the others on this thread as well, it is good to have a goal and 1000 units works well, you are looking at $80k-150k per unit in worcester, maybe you can get smaller ones and improve them but often that takes more cash then buying ones that are generating income from the jump

@Earnest Partin Worcester is a great market with tons of rentals.  With the prices for auto insurance going up, and buses in Worcester most of the rentals are in worcester.  Worcester has 5 distinct rental markets,  a. High end in downtown,  b. Distinct college rentals, HC/WPI/Becker/Clark/Mass College of Pharmacy, c. East Side for people who work in Shrewsbury/Marlboro/Hudson, d. Working class worcester folks, e. Section 8 subsidized rentals.  These are spread out in different sections of the city and have different price points.  Let me know if you want a tour.

there are still lots of buyers for particular neighborhoods in Worcester, but as you know when the prices go down, buyers will trade up to those better neighborhoods.  if you are in a 1 off neighborhood your prices are trending down more quickly . 

You mention that you are from worcester.  Keep in mind that worcester has 35 elementary schools and the value of the house is greatly impacted by that.  if you went from one of the 4 school(based on High schools) quadrants to another you would not have a reliable comp.  make sure that you use comps from the same elementary school district.  another big issue in worcester is traffic, you need to know the traffic patterns and how a prospective buyer would get to and from work.  there are multiple roads which restrict traffic in the AM hours and do not allow left turns etc.  make sure that you are aware of all of that.  the surrounding towns to worcester are more homogeneous so that is not as big an issue, except if you are talking about Holden and the towns West of worcester which traffic makes a huge difference in where people want to live.  i hope this helps.

sure PM me, that works, the Mass housing has PMI, but the key is that you can appraise out of PMI, with FHA you need to Refi to get rid of PMI, also PMI is higher for the FHA loan

mike, you will see me post on almost everything worcester. if you intend to live in worcester and owner occupy, the city offers grant programs for people like you to cover the cost of the down payment, you can either do an FHA 3.5% down loan, and you will see above you can get a gift for that, you can also get cash back at closing for closing costs and sometimes the down payment if the house appraises for higher than the purchase price, there are also 5% down mass housing loans if you have good credit. im in worcester almost every day seeing 3 deckers if you want to meet up

in worcester you can do very well for cash flow.  just had a buyer close on a 3 family for $250k with $3100 month rent and rents will go up to $3300 next year.  on 5 families you can do much better $280k cash (cash is king) got $3900/month in rent,  but as people are saying up above, it is all about neighborhood, but 3 BR units section 8 in worcester run about $1050/month  so very easy to buy something and get $3150 in rent, all depends on condition and neighborhood

Mike, as you can see from the thread above worcester is worcester and everything else is not.  the suburbs are not urban and do not offer the urban feel.  there are other places like southbridge, fitchburg which are not boston that have an urban feel, but millbury, sutton, auburn, leicester, paxton, holden, west boylston and shrewsbury that complete the loop do not.  you can do well with 3 families in worcester at a reasonable price, but you have to know the neighborhoods.  i have walked them all and see most of the inventory that comes on the market.  let me know if you would like to chat

Sebastian Bilentschuk at JG Wentworth.  

i would love to say that this is overpriced, however.  Greendale is a nice area,  the SF itself at 1050 Sq ft might go for $250k, and a 3 Decker of similar size in the same neighborhood 15 Wilkinson sold for $400k, 12 Summerhill sold for $370k and both were fair deals,  a 2 family that needed over $100k maybe even $150k of work 34 Granville sold for $220k.  The thing is that pricing of multis in Worcester is neighborhood by neighborhood and street by street.  From 11 Ericcson you can be at Boston Scientific in Marlboro in 15 minutes and you cant touch anything in Marlboro for that price.  it is likely that the sale price will be lower than $650k but you have to pick a number. i wish i was around this Weekend to go to the OH but i am not, it would not be a surprise to me if it was gone due to location,  there are deals to be found, but it takes hard work.  that is why i have been in over 400 multis in 2018 and constantly talk to agents, buyers, landlord and tenants as to what market rents are and why they are buying or selling in certain locations.  Due to the scarcity of good properties(first concept in economics class) people have to make economic decisions for themselves.  A young family may want to put their parents in the SF house and rent out the 3 decker or live in it themselves.  you may have a large family pooling their resources to put together a compound, or it could simply be a single family alternative that they can live with and see as a blue chip investment