Is this property a good investment? (Pittsfield MA)

[Faaz Hafid]

I'm considering purchasing a property located at 243 Robbins Ave, Pittsfield, MA 01201 (link: realtor.com listing). The property seems very appropriately priced based on all the upgrades and already has a tenant. Would love to get some insights on whether this is a good investment. Any advice or things I should be aware of? 

Thanks!

[Nathan Gesner]

Quote from @Faaz Hafid:

I'm considering purchasing a property located at 243 Robbins Ave, Pittsfield, MA 01201 (link: realtor.com listing). The property seems very appropriately priced based on all the upgrades and already has a tenant. Would love to get some insights on whether this is a good investment. Any advice or things I should be aware of? 

Thanks!

A quick search reveals this is a high-crime area.

[Faaz Hafid]

Quote from @Nathan Gesner:

Quote from @Faaz Hafid:

I'm considering purchasing a property located at 243 Robbins Ave, Pittsfield, MA 01201 (link: realtor.com listing). The property seems very appropriately priced based on all the upgrades and already has a tenant. Would love to get some insights on whether this is a good investment. Any advice or things I should be aware of? 

Thanks!

A quick search reveals this is a high-crime area.

 Thanks, care to share what tools did you use? And if it’s exclusive to realtors? Also I believe it’s priced lower due to the area, I’m not going to be living there so it doesn’t really matter I just think with potential rental income it might be worth it because I wouldn’t be getting a mortgage but buying out all cash.

[Nathan Gesner]

Quote from @Faaz Hafid:

There are many versions, but I checked this one: https://crimegrade.org/violent-crime-pittsfield-ma/

Crime affects your ability to find quality renters. It will also affect the appreciation of the property. In a high-crime area, you will attract low-quality renters who are more likely to cause problems. The risk of high turnover, theft, vandalism, squatters, and all other negatives will increase.

[Dave Meyer]

@Faaz Hafid the only way to know if a deal is a good investment or not is to run the numbers. If you do that and share the results here, I think you'll have more members of the community happy to weigh in. With just an address its tough to say. 

[Faaz Hafid]

Quote from @Dave Meyer:

@Faaz Hafid the only way to know if a deal is a good investment or not is to run the numbers. If you do that and share the results here, I think you'll have more members of the community happy to weigh in. With just an address its tough to say. 

I haven't done this as this is going to be my very first property, please feel free to ask any questions:

Potential Rental Income: $1000/- month (Right now through housing, but rent is due for increase)

Taxes: $2600/-

Utilities Water/Sewer: $800/- (Rest of the utilities are paid by tenant)

Purchase Price: $124,900/-

[Dave Meyer]

Hey @Faaz Hafid no worries, good place to come when you're new. 

You should try out the BiggerPockets calculators -- that will help you understand more objectively what type of returns you'll earn. It will help you understand what expenses you need to account for (more than what you have above). We have tons of videos and some webinars than can help you with the calculators if you've never done it before. 

[Christopher DeAraujo]

The area and crime statistics can be offset by your tolerance to problems.  I would be more concerned with the quality of tenant in place and payment history.  If its truly "turn-key", go for it. The entry cost for this is relatively low

[MIlton Monzon]

@Faaz Hafid

I am actually expanding to the MA market and under contract on a duplex in that same street.
Did you end up buying this property?  Let me know how your experience has been with tenants if you did.