All Forum Posts by: Gualter Amarelo

@Aaron Araujo don't get used  to it brother, but you and @Matt Andrew have me seeing the brighter side of the city, lol.

It also helps that the numbers speak for themselves!

Here are the websites I cited the above information from:

https://wallethub.com/edu/best-real-estate-markets/14889/

https://www.google.com/search?q=how+many+cities+in+the+us&oq=how+many+cities+in+&aqs=chrome.2.69i57j0l5.11567j0j7&sourceid=chrome&ie=UTF-8

https://h3s.mlspin.com/search/results.asp

https://www.census.gov/quickfacts/fact/table/newbedfordcitymassachusetts/PST045217

https://www.census.gov/quickfacts/fact/table/fallrivercitymassachusetts/PST045217

I didn't want to put this all in one response, but below is the method which was used to build the original article:

Methodology

In order to determine the best real-estate markets, WalletHub compared 300 cities across two key dimensions, “Real-Estate Market” and “Affordability & Economic Environment.”

We evaluated those dimensions using 22 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the healthiest housing market.

Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample.

Each city in our sample was categorized according to the following population-size guidelines:

Large cities: More than 300,000 people

Midsize cities: 150,000 to 300,000 people

Small cities: Fewer than 150,000 people

Real-Estate Market – Total Points: 80

Home Value Forecast: Full Weight (~5.33 Points)Note: This metric is based on Zillow’s Home Value Forecast, which predicts the Zillow Home Value Index one year from June 2018.

Median Home-Price Appreciation: Full Weight (~5.33 Points)

Average Number of Days Until a House Is Sold: Full Weight (~5.33 Points)

Share of Homes Selling for a Gain: Full Weight (~5.33 Points)

Share of Listings with Price Cuts: Full Weight (~5.33 Points)

Share of ‘Underwater’ Homes: Full Weight (~5.33 Points)Note: This metric measures the percentage of homes with negative equity.

Home Sales Turnover Rate: Full Weight (~5.33 Points)

Ratio of Rent Price to Sale Price: Full Weight (~5.33 Points)

Foreclosure Rate: Full Weight (~5.33 Points)

Share of Delinquent Mortgage Holders: Full Weight (~5.33 Points)

Number of Bank-Held Homes: Full Weight (~5.33 Points)Note: This metric refers to unsold Real Estate Owned, or REO, housing units.

Vacancy Rate: Full Weight (~5.33 Points)Note: This metric was calculated as follows: Vacant Housing Units / Total Housing Units.

Buy vs. Rent Breakeven Horizon: Full Weight (~5.33 Points)Note: The “breakeven horizon” is defined by Zillow as the point, in years, at which buying a home becomes less expensive than renting the same home.

Share of Young Homes: Full Weight (~5.33 Points)Note: “Young Homes” refer to housing units built between 2010 and 2016.

Building-Permit Activity: Full Weight (~5.33 Points)Note: This metric measures the number of unit permits pulled per 1,000 residents.

Affordability & Economic Environment – Total Points: 20

Housing Affordability: Double Weight (~5.00 Points)Note: This metric measures home price as a percentage of income.

Maintenance Affordability: Full Weight (~2.50 Points)Note: This metric measures maintenance costs as a percentage of income.

Population Growth Rate: Full Weight (~2.50 Points)

Job Growth Rate: Full Weight (~2.50 Points)

Unemployment Rate: Full Weight (~2.50 Points)

Underemployment Rate: Full Weight (~2.50 Points)

Median Credit Score: Full Weight (~2.50 Points)

Hi @Erik Pfundstein I saw that report last night as well and after review I believe that it is important that people keep in perspective that Fall River was included in the list of only 300 cities that have a population over 90,000 in the entire country.

Of the 19,354 "incorporated places" in the United States only 300 of those towns/cities have a population over 90,000.

The city of Fall River's average sales price was $227,900 in 2017 and in 2018 we are seeing it increase in the last 6 months:

Avg. Sale$: $260,238 for the Multi-families (which many of us on BP invest in) with an average days on market of 61

Avg. Sale$: $241,355 for the Single Families with an average days on market of 62

New Bedfords numbers are similarly improved:

The city of New Bedford average sales price was $204,100 in 2017 and in 2018 we are seeing it increase in the last 6 months:

Avg. Sale$: $228,209 for the Multi-families (which again many of us on BP invest in) with an average days on market of 83

Avg. Sale$: $227,072 for the Single Families with an average days on market of 59

To keep things in Perspective let's compare our south coast cities to the biggest in our state, which is our capitol city of Boston. The below chart is how the cities matched up according to the article:

Overall rank (1=Best)	City	Total Score	'Real-Estate Market' Rank	'Affordability & Economic Environment' Rank
154	Boston, MA	58.32	92	270
287	Fall River, MA	42.63	289	275
288	New Bedford, MA	42.62	290	266

As you can see all 3 cities ranked among the bottom of the list as far as Affordability and Economy is concerned. This is common in Massachusetts because as a whole we are certainly one of the less affordable states to live in.

The Important piece to look at is that this article was written based on “Home Appreciation”. Which most true investors agree is nothing more than speculative investing.

If you look at the lowest ranking cities on this chart you will find that just like Fall River and New Bedford, these cities are providing the highest and most stable “Return on Investment” in regards to monthly cashflow.

In Real Estate Cashflow is king and as an investor, Fall River and New Bedford currently have the most stable Cash on Cash potential. in the situation of another market crash, these properties are less likely to be as effected as the more appreciation focused markets like Boston.

I hope this helps and if you are serious about investing here on the southcoast feel free to reach out and we can discuss your goals and the strategies that are working in this current market.

Cheers to our success! #FallRiver #MakeItHere

@Kyle Cabral how is the portfolio coming brother! How did this deal work out?

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@Account Closed great call! I also agree that the real estate you choose to work with for investing, had better have a portfolio themselves!

If you decide to invest down here, I will be looking forward to meeting you.

Cheers to our success!

Angel Dejesus I definitely agree that now is a great time to get a foothold in the city. It sounds like you need some better lenders, lol. All of the local lenders that I work with are extremely optimistic about the cities growth and improvements right now. If you are serious about investing in Fall River and getting some great return on investment, send me a private message. I can get you hooked up with some of the best local residential and commercial lenders in the area! Cheers to our success!!

This is a question I get asked all the time. If you live in Boston or the greater Boston area you have seen real estate explode on an outrageous level. 

There are 2 reason you are interested in Fall River:

1. The prices are very low

2. The cash on cash return is very high

And there are 2 reasons you ask the question:

1. The distance is an hour

2. You've heard about an opiode epidemic 

Let me clear up how I look at it below:

1. Return on investment in Fall River is amazing! (I own 40+ units in the city)

2. Opiode issues are generally as easy as evicting the bad tenants ( since drug use is not a protected class)

3. Get a property manager (this should have been number 1)

4. The city is actually a very nice and desirable place to live (I know... I live here)

5. The right real estate agent can hook you up with the right locations and explain all the process (I own a real estate office in the city, yes, shameless plug)

 I would love to hear some of the other major questions and concerns. 

Let me know why you are interested in Fall River. What's holding you back?

@Erik Pfundstein That is great! You should definitely come to our next meetup and start building your network now before you are ready to start investing!

We look forward to meeting you!

Cheers to our success!