New Investor from Massachusetts

[Nate Jones]

Hey everyone,

My wife and I are new investors in the Western Mass area. We're primarily focused on a buy and hold strategy. Our location is almost dead smack between Worcester and Springfield. I personally grew up in Springfield and understand that the area can be challenging and the market is extremely hot and cold which has lead me to look for other opportunities. I'm not too familiar with Worcester, but from what I've read it can be a great market. We would like to focus our efforts on the smaller towns surrounding Springfield and Worcester such as Palmer, Ware, Monson, Brookfield etc because that is what we are most familiar with.

Currently I work for a local land clearing company and my wife works as a teacher. We both enjoy our careers and have no plans of leaving. Our goal as real estate investors is to find a sound, long term place to park our money. At this point in time we're interested in buying up a handful of newer (70's up) duplexes. Our goal is to provide clean and well maintained housing while providing both parties with a positive solution, the tenant and us of course. We are open to all/any advice from local investors and look forward to hearing from everyone!

Thank you,

Nate Jones

[Jonathan Bombaci]

Welcome and congratulations on deciding to start investing. I think you have a good strategy. You narrowed down the area and it sounds like you have a well defined goal. I’d recommend that you start networking and attend local meetups if you’re not already doing so. Your network will become your networth. 

Two things I’d recommend you keep in mind:

1. Duplexes are not the same as 2 families. Side by side duplexes tend to be more attractive to renters over the up and down style. Also while it doesn’t make sense in Springfield currently, the side by side makes a much better condo conversion project which could give you an additional exit strategy in the future. 

2. Play to your strengths and what differentiates you from other investors. Since you work for a land clearing company try to use that to your advantage. Maybe target properties that are heavily wooded or with double lots or lots that could be divided (a call to the town will tell you that). I think Building costs are too high for new construction in western MA right now but things will change. Having additional options and targeting properties with value add opportunities is the way you’ll turn a good deal today into a HOME RUN deal in the future. My guess is you’ll be able to size up those lots pretty quickly and determine if they’re buildable or even worth building on or not which others will struggle with.

Best of luck,

Jon