Property Selection Checklist !

[Matthew Cataldo]

Hello again everyone,

I come seeking more advice from everyone. I have mentioned before that my first investment property would ideally be a multifamily duplex/triplex/quadplex. I have created a criteria of things that I would like to have when I make my first deal. The more I look each thing on my wish list the more skeptical I am of it's overall influence of my decision. For example, if I can buy a house in Medford (popular city outside of Boston) for 400,000 that has 4 units for 1500 a unit. What's the advantage there if I can buy a 4 unit house in Springfield MA (2 hours west of Boston and a less desirable town than Medford based on crime rates etc) for 200,000 at 1200 per month. I suppose my point is how much does "location location location" matter when purchasing a property strictly for renting purposes.

Thanks !!!

[Shaun Reilly]

I'm not actually going to comment on your actual questions since I think it is a little more important to temper your expectations.

If you can find a 4 family in Medford for $400K get that sh*t under contact yesterday! NOT HAPPENING (Unless it is a full gut, maybe)! Looking at MLS there aren't any 4 families period (In any state of active, under agreement or sold in the last 6 months) and the cheapest active multi family listing is a $450K duplex with 2/1 units. Your rent figure for Medford is probably okay for nice 2/1 units, low for anything bigger, and a little high if they are 1BR or really small 2BR.

You can get 4 family places in Springfield. $200K is actually the going rate. You are probably way off on the rents though. 3BR places will more likely get you in the $800-900 range. If they are updated and are big maybe more like $1000. Not a big discount it seems for 2BR units but probably topping out in the lower $800s.

In your other thread you indicated you were seriously looking at doing an FHA. If that is a top option you need to live in the place. Do you want to live in Springfield? No offense to people in that area, but you are in Billerica now so I assume you have friends and family in the area. Do you want to be 2 hours away from your current life just to get a cheaper property? Maybe you do but not an insignificant consideration.