Second Rental Property Search

[Dung Nguyen]

Hey BP community!

I am a new investor that has recently purchased a three family rental property in Worcester, Massachusetts. Although I would love to purchase my second rental property in Worcester as well, the prices have recently sky rocketed. There is so much competition in that market right now. I have started to look at properties in Woonsocket and Providence Rhode Island, New Bedford, and Fall River while still also keeping an eye on the Worcester market. Should I just be patient and wait for a property that makes sense in Worcester? Or is it a good idea to invest in a rental property in a different city? Do you have any city recommendations? All advice is welcomed.

P.S. If anyone has any handymen recommendations I would greatly appreciate it!

- Dung Nguyen

[Anthony Thompson]

@Dung Nguyen I’d tend to lean toward buying another property in a market you already know and have resources in, rather than branching out to a different market completely, if possible.

Where have you been looking for deals? Have you tried marketing directly to owners in your current market or are you just looking on the MLS?

Direct mail is frequently recommended here on BP (for good reason - it works, eventually), but I also like to tell people to try calling “for rent” signs in their area to ask the owner if s/he would like to sell. The best deals are the ones you find and create yourself, though they do take more work and time.

Also consider that just because another market is cheaper price-wise, doesn’t necessarily mean its properties are better deals. If prices are 20% cheaper but rents are 30% lower (for example), you’d actually be worse off. So it’s important to be able to analyze properties on an individual basis for comparison purposes, too.