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Updated over 8 years ago, 07/08/2016
New to BP!
Hello Everyone, I am new to the BP message boards. I am currently living in Revere Ma and interested in investing 2-4 famiiy properties in western Massachusetts, Fitchburg, Leominster, Clinton. I have been listening to the podcast for the last several months and have read the UBG as well as Brandon's "Book on Rental Property Investing" and J. Scott's book on estimating rehab costs to name a few. You could say I have been doing my homework. After getting motivated by one of Brandon's webinars I got preapproved & I'm currently viewing properties. Anyway I just wanted to make my first post and say hi to everyone in the forum.
#5 New Member Introductions Contributor
- Real Estate Agent
- Falls Church
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#5 New Member Introductions Contributor
- Real Estate Agent
- Falls Church
@Christopher DeFronzo welcome to BP. Good luck with your goals.
Thanks!
hi @christopher defronzo
Welcome! I am also in Massachusetts and have similar goals as you. Nice move on being pre approved before viewing properties since you can see houses that are in your target price range.
Feel free to reach out!
Thanks! I've been doing my homework and just getting to the point after a few months of analyzing properties and reading all the standard books where I'm going to look at properties that meet my criteria for cash flow & are in my wheelhouse in terms of price & renovation needs. Ideally looking for some brrr action but the more I look I'm realizing that I need to get some skin in the game soon even if it's a turn key buy & hold.
#2 New Member Introductions Contributor
- Specialist
- Rockland, MA
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#2 New Member Introductions Contributor
- Specialist
- Rockland, MA
Welcome take full advantage of the BP resources.
You might consider Worcester there is a good college market there.
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). Find them through Google and meetup.com There is a Black Diamond meeting in Worcester.
Paul
I went to school @ WPI before transferring closer to home to Northeastern so I am semi-familiar although that was over 10yrs ago and the last time I was there, last year, the campuses had greatly expanded. Great advice on the REIA meetings. Thanks!
@Christopher DeFronzo why are you looking in those towns? Not saying it isn't a good market, I am just curious what you see there that you don't see closer to home in Essex county?
@Christopher DeFronzo - Welcome! I just recently purchased my first 3 fam in December 2015. It's an exciting ride and I look forward to hearing more about your deals to come!
@Justin Repp Again I'm new to investing but from what I can see the closer you get to Boston like Essex county the cash flow just isn't there in my price range. The best deals can barely positive cash flow and the quality of property that you get for your $ is decreased while the areas that I would be investing in (eg. Lynn) would be similar in demographic to some of the western towns (eg Fitchburg/Leominster). I have also found that there are just less 3-4 family properties (which I am currently targeting) in many of these north shore communities. Investing in the Boston area is more of an appreciation game IMO, not to say I wouldn't be interested in an owner occ. or "house hack" closer to Boston down the road, but I feel like the best opportunity for me to grow my investment is out west.
I've looked in towns like Lynn & Salem & $300k can barely get me into a 2 family that cash flows even every month and would take my entire savings of liquid cash as a down payment. Out past the I495 belt I could stretch that cash to purchase 2-3 cash flowing multi-families. It just seems like the best strategy for my current goals to cash flow add value where possible, refi/cash out & continue to leverage.
@Christopher DeFronzo I think those are all great points and I think you are making the right move. The only thing I would caution, is that make sure you do your homework on what is the driving force behind people living in your projected investment areas. While it might be pricier and less appealing on paper in a city like Lynn, the industries/jobs that are nearby will help buoy values and ensure your rents stay stable and likely go up over time. I am not super familiar with Fitchburg/Leominster but generally speaking when investing in smaller towns, often time it is only 1-2 companies that employ your renters. If they decide to pack it up and move out of town, your investment might suffer. Fitchburg is appealing because of the school which is a stable employer and driver of population.
Good luck!
Christopher DeFronzo
I have a 2 1/2 family for sale n Lynn 01904 I haven't put it n the market yet . But I have a 1100 cash flow
@Justin Repp thanks for the input definitely something to think about. I see a lot of retailers moving to these areas & infrastructure being put in place to handle the increase in population/commuters like rt. 2 construction projects for example. I feel like these towns also are not so far away that some portion of the population works in Boston & surrounding areas. Your point is not lost though that's why I think a property with off street parking is extremely important in these areas to attract a certain caliber of tenant with a car that would value this amenity.
@Luis Capriles I'm not saying there aren't investors cash flowing in Lynn & surrounding areas, I'm sure if you purchased during the down market you would be benefitting from positive cash flow & appreciation. Likewise I'm sure there are opportunities for extensive rehab projects that would cash flow positive when completed even in the current market. I can only comment on what I see and my focus in the current market & for that matter I can only comment on properties I see on MLS since that is where I am finding the majority of the deals that I am analyzing. I'm assuming that once you sell your property the next owner will not enjoy the same $1100/month cash flow that you do.
I bought mine not even a year ago there is deal everywhere n the north shore area . My rent are really low so is possible that the new owner could be cash flowing same or more.
Lusi Capriles can you provide any more details on your property? I'm genuinely interested since I would much rather invest closer to home but my experience has been quite different on what is available. What kind of price range do you invest in & what kind of rents you are getting?
For example right now I see only one multifamily property available in Lynn under $300k ( 2-family $230k) on MLS. This would mean over $50k if I were to put 25% down which is over 3/4 of the $ I have to invest currently. After PITI, water etc ballpark expenses will be $1600-1700, rents maybe $1100/month per unit? So maybe cash flow $500/month in this example but I'd be cash poor and unable to do another property in the immediate future. That's if I were able to get a deal done on the only property in town (on the mls).
As a new investor I don't have any kind of system in place to dig too far below the surface other than what's available on mls & Craigslist. I don't have any flyers or bandit signs or a book full of connections (yet). I'm just trying to get some skin in the game with a property that works for my first investment and leaves me with some cash reserve to renovate & cash out refi or $ to do another deal immediately.
@Christopher DeFronzo welcome to BP! I'm a newbie myself (been on about a month), and have already started networking with members. It's a great forum for information and getting to know members of the community.
I never considered Western MA, but with the MGM opening there next year the area's prime for revitalization. I'll have to check it out...I'm in the same boat as you, can't afford anything inside 495.
Welcome to BP Christopher, you'll learn a great deal here. Hi Lusi , I'm interested in the multi you have coming up in Lynn. Would you reach out to me when you have some time this wk. Thanks.
Tim Slatt yeah this community is great, and I'm learning a lot through the podcast, discussion boards & books. I guess when I say western MA it's really more of central MA that I'm referring to (Worcester county). As someone who grew up on the north shore & went to school in Boston I guess I fall into the group who considers anything out past I495 as western MA.
Good luck to you on your investment journey!
Hi Christopher,
Welcome to the group. Feel free to reach out to me with any questions.
Good luck,
Enis