All Forum Posts by: Lisa Kattenhorn

@Zachary Ray I did add some extra for cap ex and maintenance, but can you give me some specifics as to what I might not be considering in a house of this age?  

@Colleen F. Thank you for the information. Was there anything specific you did to inspect the wiring and the plumbing before buying? What I can see looks ok, but you never know what is behind the walls.

Thank you to everyone for your replies.  It is really helpful to know that the age itself wouldn't scare you away.  The electrical issues are the biggest question at the moment because the amperage coming from the street is not adequate.  The house is on circuit breakers, not fuses, but according to the inspector, the house only has 50 amps coming from the street.  I am not sure how that is even possible for a 4 unit.  Upgrading the panels is relatively straightforward, but regarding the outlets themselves it's hard to know what kind of wiring is in the walls without opening them up.  

@Nadia O. Luckily only the outside of this property viewable from the street is covered by the historical commission, and the windows are relatively new.  The house needs to be painted outside, but we don't plan to do any modifications to the outside other than some minor repairs.  

Hi everyone!  Any advice would be appreciated.   I currently have a 4 unit under contract in Worcester County, MA, that was built in the 1760s.  The units are laid out quite well and the house seems quite structurally sound on inspection.  They just don't build them like this anymore...the post and beam attic is quite impressive.  The wiring needs a little work, but is relatively up to date (no knob and tube) and the plumbing, heating and windows are in good shape.  The area is great for rentals and the numbers work.   My biggest concern is resale value/appreciation.  It seems the owners struggled to sell this place the last two times it was sold...finally cutting the price quite significantly to get it done.  This past time I assumed was due to covid, but they struggled to sell the place in 2015, as well.  Am I making a huge mistake buying a property of this age?  Any thoughts on if the age of the house will be a huge impediment when it comes time to sell?  

@Richard Guy  I have a multifamily in Woonsocket and I am pretty happy with it.  Good cash flow.  Different areas of the city can be different, however, so just be a little careful.  I have been looking to buy another there sometime soon.

Having some issues with my post but I have a multifamily in Woonsocket that I have been pretty happy with.  Cash flow is good.  Let me know if I can answer any questions for you.

You could potentially get 2000 for that place right now because Worcester is really hot at the moment..for whatever reason..but it's not in the best of neighborhoods.  I would be more conservative and say 1800.  Personally, I would want more of a margin for cash flow but I am pretty picky about my purchases.  This place would make a better house hack or something similar, I think.  Are you going to pay for things like snow removal or utilities?  If so, that could quickly deplete your profit.  What about if you have to evict someone because they aren't actually going to pay that 2000 a month that they said they would.    MA is a tough state for evictions and you may need money for legal fees.  If you are just looking to break even every month and end up with a paid for property in 15 years, I have to ask...why there?  It's not the nicest of areas and unless you have some reason to want to move there eventually, I am not sure I see the point in owning half of a duplex in a giant complex in a not so amazing part of Worcester....but that's just me.  Also, while I understand that the property is new so you may not have as much cap ex/repairs upfront, sometimes those big complexes are put up quite quickly without a lot of concern for quality.  So, I would always budget SOMETHING for those expenses.  You will also need money for paint, carpeting, etc when you turn the apartment over...and that may happen more frequently if you are charging 2000 in that neighborhood.  If you are managing from out of state, I am curious why you picked Worcester, and especially that part of Worcester?  I don't mean to be negative, but I am just trying to help you consider all possibilities.

@Robert Loiselle  Ahh, good to know about the tax credit.  I will look into the paperwork.  Thanks so much!

@Robert Loiselle  Thanks so much!  These tips are great!  If the unit was deleaded and received a cert in 2002 but there is a lot of paint peeling on walls and ceiling now, how much is that lead cert really worth?  I know lead paint is less likely on interior walls and ceilings, but is it some reassurance that major things like window sills, etc were taken care of back then?