South coast real estate market ranked among worst?

[Erik Pfundstein]

Saw this article saying the new bedford and fall river markets are among the lowest ranked according to these standards. I would like to see others opinions on this. i am(have been) looking into these markets for 3+ unit buy/hold.

http://fallriverreporter.com/fall-river-new-bedfor...

Thanks!

Erik

[Gualter Amarelo]

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