Worcester Off Market Deal

[Nick Noon]

I was presented with an off market 2 family deal that I am analyzing in Worcester, MA

1st floor is a 3 bed/1bath, 2nd floor is a 2 bed/1 bath with possible expansion into the finished attic to make it a 3 bedroom.  Utilities are all separated, the house need some updating but no major Cap Ex in the very near future anyway.  

After some negotiation, he is willing to take $330k for the property as long as we delay closing for a month in order for his sister who is living there to find a new place.  

I guess my general question to the Worcester investors out there is that I run the numbers and its still pretty skinny. I figure I can get $3200 to $3400 total for both units, the mortgage would be around 1700, taxes around 420 a month, throw in some rainy day money for repairs and cap ex and im not looking at a crazy cash flow or ROI. However, I feel like you can't really find a two family in Worcester for that price in this decent of condition. So even though the numbers aren't great, does it still seem like a good deal...maybe a 6 month flip? It's hard to find a rental property in the low 3's anywhere in the greater Boston area it seems in general.

Would appreciate any general advice. 

[Sabrina Sanchez]

Quote from @Nick Noon:

I was presented with an off market 2 family deal that I am analyzing in Worcester, MA

1st floor is a 3 bed/1bath, 2nd floor is a 2 bed/1 bath with possible expansion into the finished attic to make it a 3 bedroom.  Utilities are all separated, the house need some updating but no major Cap Ex in the very near future anyway.  

After some negotiation, he is willing to take $330k for the property as long as we delay closing for a month in order for his sister who is living there to find a new place.  

I guess my general question to the Worcester investors out there is that I run the numbers and its still pretty skinny. I figure I can get $3200 to $3400 total for both units, the mortgage would be around 1700, taxes around 420 a month, throw in some rainy day money for repairs and cap ex and im not looking at a crazy cash flow or ROI. However, I feel like you can't really find a two family in Worcester for that price in this decent of condition. So even though the numbers aren't great, does it still seem like a good deal...maybe a 6 month flip? It's hard to find a rental property in the low 3's anywhere in the greater Boston area it seems in general.

Would appreciate any general advice. 

Hi Nick,

You are absolutely right that you cannot find duplexes in decent condition at that price in worcester

Furthermore, depending on condition, size and location you might be able to get more on those units.

With a quick look getting two units for about 165k each is not the best but its not the worst either in worcester.

You also mentioned a finished attic which may also be a value add in the future. But without more info I can't say too much here.  

You mention the condition is decent but it seems like it needs work and I think thats going to be the deciding factor as to whether or not its worth it. You need to find out how much its going to cost you to get it to rent at market rent and make sure its also in area that has a strong rental market.