1st Time Investor Seeking Connections (& Wisdom!) in New Bedford

[Peter Carboni]

Hey all,

I'm a first-time investor looking to do my first house hack in New Bedford, MA. I'm looking to connect with investors with experience with the city.

Why New Bedford?

I know that taxes and tenants get tricky here, but overall I have many reasons to want to invest here. It's close to home, with many hospitals, burgeoning culture and arts scene, and commuter rail in the works. I believe in the city and have been overjoyed to see it prosper so much in recent years.

Here is roughly where I'm at when it comes to my first househack.

I know that everyone on here is busy, so I appreciate any responses from anyone who has invested in southcoast MA.

My main goal here is simply to connect with anyone who's invested in the city. This will be my first home purchase and I'd love to hear from as many investors who are familiar with the city. I'm also hoping to make local friends and find meetups to attend.

What I do know:

I have an agent and a lender.

I'm looking for a triplex. 

How to find properties off of the MLS

I'm partial to the south end of the city.

How to use the deal calculator on this site. 

What I know I don't know:

How to inspect a property in-person

How to act/ what to wear to the showing

Which streets and neighborhoods to avoid

Which streets and neighborhoods might meet my goals 

How old is too old (some of these buildings are verrrry old)

Tenant laws to watch out for

And last but not least, I don't know what I don't know. I'm expecting the unexpected and hopefully have saved enough to cushion me against any major disaster. 

I realize I've posed a bunch of specific of questions- I don't expect to cover it all here. I assume that the more people I meet and connect with the less of a mystery this will all become.

All that is to say that I would appreciate any and all advice about the New Bedford market. I'm happy to chat privately as well. 

Thank you!

[Wayne Marques]

@Peter Carboni I have lived in, and right outside of, the city for many years, but I never invested there.  The reason I didn't invest there was because we wanted to invest in Maine where we will be retiring, but I have some insight into the city.  As you are house hacking you will want to be real careful which parts of the city you choose to buy your property.  I'm not sure how familiar you are with the different areas, but there are many high crime neighborhoods.  A lot of these questions can be answered by your Reatlor/Agent.  

After you find a potential investment, you would need to have a home inspection to identify problems with the home.  I would never skip the inspection. 

Act professionally, but don't worry too much about what you wear as long as you are presentable.  The area isn't a high net worth market where they need to see you in designer clothes before you are taken as a serious buyer.  

As far as which specific streets or areas to avoid?  There are so many, but there are also nicer areas too.  The far North End is generally safer than most of the central part of the city.  The South End, as you mentioned, has nicer areas down by the beaches, but it also has bad areas a short distance away.  Though all this is subjective so I can't say for sure what you are looking for in a neighborhood.

Nearly all of the triplexes are old, but many have been updated over time.  This is where an inspector can tell you what is to code and what will need to be updated. 

As I haven't invested in MA, I can't speak to the tenant laws.  The only thing I would say is that there are never many multi-family homes for sale in the city, compared to how many there are in total.  The rental market has been strong for a long time and landlords aren't trying to sell.   This tells me that tenant laws aren't as restrictive as other inventors might lead you to believe, but please confirm this with your agent.  Hopefully your agent is an investor as well.  If not, you may want to consider finding one.

If you have any other city specific questions, please reach out. 


  

[Jonathan R McLaughlin]

@Wayne Marques finally! A post that recognizes rental regulations usually follow places where people are making a good deal of money. " Why would anyone invest there?!" Because you do well.

@Peter Carboni We looked at a few commercial properties in New Bedford a while ago now. Love the history, all that you talked about, but there were clearly challenges with gangs on the waterfront, bizaarely high taxes, some other stuff. I'd listen to folks like wayne carefully and check city data crime maps etc. I looked at one place and the first 3 google hits were different shootings in the nearby park. Realtors can't "steer" you so don't expect them to be all that helpful, though most give you some indication. I'd call the police on any property you are thinking of and ask about activity. 

All that said, I think there are a number of projects people came in, bought cheap and renovated and you might do well to look at those. Some will be slap and dash home depot specials but some will be quality and people are trying to get out with the perceived slide. There was a place on MLS for $510K and 6 units where they want to sell supposedly for a 1031 that looked well done and appealing, separated utilities etc. I can't comment on location, current comps or anything, it just crossed my mind that under 100K a unit could really work for a long term hold and potential rise. And quality one beds could attract the early adopters of coffee shops etc. Even with the low rents there it might be worth sniffing around.

I have no affiliation with the property or anything/anyone in New Bedford, just a thought experiment for you. Look at recent roofs, wiring, Lead paint issues, age of heating systems and older windows, could run you a fortune...yada yada

Good luck!

[Peter Carboni]

@Wayne Marques Thank you- I really appreciate your response. All of that is fantastic and very pragmatic advice.

I'll certainly be careful when choosing a location- I'm not the most familiar but can utilize my agent and crime data to get a clear idea. I appreciate your advice on the showing and how to present myself.

Lastly, I'm glad to hear what you said about landlords not wanting to sell. I don't know much about market specifics, but what I do know is that the city isn't what it was 10 years ago. I'm really optimistic that I can find a great deal here.

I really like the south end. So many properties down there can at least see the water. It's not a bad view!

Thanks again for your insightful advice, Wayne!

[Peter Carboni]

@Jonathan R McLaughlin Thank you, that's a great heads up. Especially about gangs on the waterfront- ha!

Thank you for letting me know about the new stuff going on- that's incredibly useful to know. I guess my next task, as a first-timer, would be learning how to tell the quality people from the home depot slash and dashers. I'm sure my agent can help me there..

I have a couple of clarifying questions if it's okay to shoot you a private message?

Thanks again for the thought experiment and the practical advice on what to look for with older properties. Really appreciate your response. 

[Jonathan R McLaughlin]

Hi Peter, sure. Happy to chat.

[Nicholas D.]

@Peter Carboni You are starting off well ahead of many others. I applaud you on the layout of your post and the fact that you broke down "what you know" and "what you don't know". I too see the city of New Bedford as a growing opportunity pool of investments. It certainly has come a long way in the past 10 years. I have lived in this city, worked in this city, and invest in this city. I see that there is still plenty of potential and room to grow in the southeast region. House hacking is a good way to get started with the inspection, walkthrough of properties, underwriting, and eventually managing. When you make mistakes (you will make plenty) you will be able to immediately adjust/correct easily and quicker by house hacking and get your feet wet.

[Peter Carboni]

@Nicholas D. Thank you for your response. All of that is great to hear. I appreciate what you mentioned about making mistakes. I'm certainly expecting to make plenty- haha. 

In searching the MLS, It's difficult to find a triplex that will cover the entire mortgage, especially when I'm only putting down 3.5% as opposed to the traditional 20%. I'm wondering if a fourplex would be too much to take on as a first-time investor. What do you think? Also, I'm certainly going to use a property manager- and I'd really appreciate any recommendations you might have.

[Nicholas D.]

@Peter Carboni when aiming for smaller multifamily properties I would specifically focus in on fourplexes as you are maxing out your potential unit count with still allowing owner occupied financing for better terms. So to answer your question: I would suggest focusing on a 4-plex instead of a 3, but more units doesn't always mean more cashflow. Feel free to PM me and I'd be happy to at least give my insight on any questions you have.

[Bud Gaffney]

Congrats Peter! I love investing in New Bedford. I currently have 31 units in New Bedford, Taunton, Fall River, and Westport. I look at NB as my bread and butter, and would love to help in any way possible. Please feel free to shoot me a message + we can grab breakfast downtown on me. Congrats again :)

[Josue Velney]

@Peter Carboni I hope all is well. I was in your shoes about twelve years ago. Some advice I could give you, read as much as you can about real estate and talk with investors with gray hair! Your first purchase will set the tone. It would be wise for you to learn all the different first time home buyers programs including anything the city might offer! I don't tell most people this but my favorite time to buy is between Thanksgiving and Christmas!! When everyone is buying gifts I prefer to buys houses!! Stay hungry my friend!!! You got this!!

[Bud Gaffney]

@Peter Carboni hi Peter, I have 4 properties in NB. Union St, Washburn, West Rodney French, Braley Rd. I think it’s a great city to invest in. Ask me anything.