All Forum Posts by: Tyler Munroe

Adding another to this thread - 129 Webster St, Haverhill, MA.

This 4-unit property in Haverhill presents a strong investment opportunity with recent upgrades, solid rental demand, and potential for easy value-add improvements. I've been watching this for a bit and it's at 10 DOM, so may be some room on the price since it's sitting. I also like Haverhill as a peripheral city to Boston - commuter rail stop, close to major highways, and nice downtown with some municipal improvements on the way.

PROPERTY OVERVIEW:

• Unit Mix: (3) 2BR units, (1) 1BR unit, plus parking
• Recent Upgrades: New roof, updated electrical panels, new hot water heater
• Location: Walkable to downtown in a well-established neighborhood
• Parking: Dual driveways provide off-street parking for tenants

RENOVATION SCOPE & COSTS:

• Limited photos available, but if the rest of the house is in similar condition, likely cosmetic rehab only (~$30K per unit).
• Potential upgrades include paint, flooring, kitchen cabinets/counters, and appliances.
• Ideal for a DIY landlord or owner-occupant looking to add value, but also works well for any investor seeking cashflow.

MARKET RENTS & INCOME POTENTIAL:

• Market Rent Estimates (based on local comps):
  • 2BR Units: $2,200 - $2,500/month
  • 1BR Unit: ~$2,000/month
  • Total Potential Rent: ~$8,600/month
• Currently Fully Tenanted:
  • Current rents cover mortgage payment.
  • Would need to manage tenant move-outs before renovations, which could delay the project.
  • Evictions may be necessary if tenants do not leave voluntarily.

FINANCIALS & PROJECTED RETURNS:

• Financing Assumptions:
  • 20% down payment, 7% interest rate, 30-year fixed mortgage
  • Principal & Interest (P&I): ~$4,524/month
• Annual Expenses (including taxes & insurance): ~$17,000
• Utility Costs:
  • Heat is not separately metered, leading to higher utility costs (factored into analysis).
• Projected Cash Flow & Returns:
  • 10% cash-on-cash return once stabilized
  • $31K+ annual cash flow
  • 5-year total ROI ~95%, factoring in principal paydown and 2% annual appreciation

Thanks @Lien Vuong! Great info, nice to see there's some deals making sense these days, although it was UAG in only a few days so we won't know the final price for a bit.

Thanks Warren! I haven't walked this property to verify numbers, so it could definitely be a bit more expensive for the renovation, but nice to see some deals pop up that potentially cash flow in strong markets around Boston. Too bad I can't say the same for the anything close to the city...

As an investor-only agent in the Boston area, I'm looking at the market nearly every day and analyzing deals for clients. I've been pleasantly surprised to see a mix of buy and hold, flip, and ADU type opportunities surface, so I figured I'd put them out to the BP community for anyone who's in this market and feeling frustrated. I haven't walked most of these properties in person so my rehab numbers are based off the pictures, but it definitely seems like there's some value to be had here. Feel free to let me know what you think and post some more deals if you find them!

78 Endicott St, Peabody – A 4-unit property with all 2BR/1BA layouts and off-street parking in a prime location near Route 128, the commuter rail, and Salem—just a 30-minute drive to Boston.

Investment Breakdown:

• Purchase Price: $900K
• 20% Down Payment @ 7% Interest: $180K → P&I = $4,790/month
• Renovation Estimate: $200K ($50K/unit) → Total investment: $340K
• Operating Expenses: ~$18K/year (taxes & insurance)
• Stabilized Rents: $2,300/unit (market comps)
• Cash-on-Cash Return: 9% when stabilized

This deal checks a lot of boxes:

• Max units for residential financing – You could live here & house hack
• Cosmetic rehab potential – Flooring, cabinets, counters, appliances, paint (~$50K/unit)
• Strong long-term ROI – Factoring in principal paydown + 2% appreciation, a 5-year stabilized ROI of ~75%

Pre-pandemic, these deals were more common closer to the city, but now we’re looking slightly further out—yet they still work as wealth-building assets.

Hi @Lauren Frazer! Sounds like you're on the right track for areas to find deals. I feel like there's still people trying to make BRRRR deals work close to the city and the truth is it's nearly impossible given prices, rates, and the cost of construction. Pushing into other, close-by, markets is the best (and maybe only) way to make it work. You may want to find a good agent in the southern NH area as I'm hearing that market is prime for investment with people moving up from MA, but your other markets might be just as solid.

Also, since you're already an agent, it's pretty easy to get your reciprocal license for NH or RI. Could help you save some serious $$ if buying and selling there and can also get you access to their MLS systems. I did it for NH, it was very easy!

Hi @Liam Mallon - not a lender, but would you mind sharing your thoughts on how best to utilize Zillow as an agent? I've heard differing opinions on it, especially in the MA area. Thanks!

 The Salem/Beverly area is great and pretty pro-development/housing from what I'm hearing. It's still a tough market to find cashflow but definitely more doable than areas close to Boston. Haverhill is another interesting area with reasonable home prices and a lot of municipal developments in the works (also the commuter rail and easy access to major highways). I do feel like Haverhill is much in the "path of progress" than comparable areas like Lowell and Lawrence, so it's a city on my radar for sure.

@David Lewis I'm regularly looking at multi-family listings on MLS and can only find cash flow in tertiary markets - think Lowell, Fitchburg, Springfield, etc. Problem with these is 1) they won't appreciate as quickly as those closer to the city and 2) it's a whole different tenant base, usually with a lot more management. Honestly, I've given up on finding cashflow anywhere close to the city due to rates and prices, BUT some other opportunities you may want to consider are:

Live in flip - mentioned earlier in this thread, always a solid option in any market.

Condo conversions - good money to be made from this and since they're a little trickier than a traditional flip there tends to be more inventory available that would allow for a profit.

ADUs - come February 2nd, ADUs are allowed BY RIGHT on any SF property in the state, owner occupied or not. This could be a huge opportunity for investors who can find cheap conversions (think: a SF with an existing in law apartment). Additionally, I'm hearing at meetups that this could extend to multi-fam under 4 units as well, although I haven't been able to confirm.

I work exclusively with smaller investors in the multi family space and would be happy to chat more about it. Feel free to connect if so - good luck!

@German Fernandez Love those options! If the commercial space isn't too disruptive, you shouldn't have an issue renting an ADU up there. As long as the city considers your property a true SF, you shouldn't have any issues getting this permitted (in theory, yet to see how some municipalities will handle this law). What a great find, though - a single family turned into basically three streams of income, assuming you get an ADU permitted!

Keep us updated how it goes, interested to hear.

I'd love to get more conversation going about the new MA ADU law going into effect Feb. 2nd. This provision, through the Affordable Homes Act, make ADUs legal BY RIGHT in any single family zoned property in the state. I'm actually hearing that it will be allowed for residential multi family as well, although haven't confirmed that. As long as the ADU is under 900 sq. ft. and meets the state building code, there will be no variance or special permit needed, so no ZBA or neighborhood meetings. Additionally, any existing restrictions at the town level (there are MANY) will be abolished, unless deemed "reasonable" by the state. Lastly, ADUs are allowed for NON owner occupied properties, opening this strategy up for investors who could convert a SF into two units.

That's just a brief summary, but I feel like there's not as much buzz and excitement around this law as there should be. If you look what ADUs have done for California, it seems like this can be a transformative trend here in MA. 

I think initially it makes sense to find properties that already have finished basements, in-law suites, etc. as converting those spaces to ADUs will be inexpensive and create a significant amount of rental income ($2,000/month+ in most areas close to the city). As ground-up ADU builds gain popularity I hope we see some affordable options, like modular, but from what I'm seeing now the ROI just wouldn't be there.

I'm trying to help spread the word about this law and compile as much information as possible so I can help investors capitalize on it. Would love to get some BP community feedback on what you all think of this, let me know!