Live in MA, already investing in MA, considering RI?

[Steve Porcello]

Hello everyone,

My name is Steve. Me and a partner have experience with SFH, condos, apartments, and small storefronts geographically between Boston and Cape Cod. We primarily buy, rehab (if necessary, usually less than $100k,) and rent.

We are trying to grow, and have had a particular interest in duplexes,triplexes,fourplexes, or even 5+ (very hard to find 5+ in my area). It can be quite difficult to find deals in this area, especially with the real estate boom taking place in Boston and branching out into surrounding communities.

Should I consider looking into RI? Is the process any easier/more difficult than MA? If yes, then in what way? If anyone on BP has experience with living in MA and buying multi-families in RI I am open to hearing any stories, good or bad. I don't know much about the market in RI, and I would like to hear about what is going on there. Any predictions for 2017? Thanks guys.

-Steve 

[Christy Alferes]

@Eric Dufault @Steve Porcello

I am a real estate agent showing 9+ Multi-family properties for sale, and my family HH'd one 3 Unit in the South End of New Bedford. I cannot speak on the RI market. 

The New Bedford market is hot with House Hackers wanting to purchase the "Nice" buildings. It is surprising to me (even though I did the same) that the HH are buying into, in my opinion, some tricky neighborhoods. That being said, New Bedford doesn't really have "tough" neighborhoods, but they have "tough" streets. You have these really beautiful Homes, with gardens & all on one street and just one street over is a dump. The only real way to find out is to go to that street on a sunny/warm weekend and look around. You'll know if its right for you. We bought an A+ building on a tough street (really tough) and have had no problems. We got an amazing deal on a building with new siding, windows, roof, heating system and more!

Because I am working with some 80+ tenants, mostly TAW, some Section 8, I may have some insight here. For the most part, the tenants are okay. Out of the 80 I have met, there are about 7 that stick out in my mind as people I would want out if they were my buildings, even if they were paying their rent. I met a few tenants on Section 8, again, there are good and bad .. I would say you really have to make decisions person to person. I love the Section 8 scenario, if you are ready to deal with inspections & complaints readily, you'll be ok. Having a bad tenant can ruin a whole building of tenants. I love when I go to a building where the tenants are mutually respectful to each other, what a difference it makes to the building, the landscaping, the hallways, basements. It seems that when one tenant is given "careful" responsibility, they kinda keep everything in line.

HH cannot buy the properties that do not meet their FHA guidelines, (peeling paint, needs new roof, utilities cannot be turned on, etc.) so that's what investors have been looking at. I've been showing properties in the $77-150k range to these investors.

Hope this was helpful, I am interested in RI also, so hopefully someone from that market will chime in soon!

Current Market 1/13/17

2-3 Units New Bedford, Dartmouth, Westport, Acushnet

ACTIVE ... Multi-Family Listings: 90 Avg. Liv.Area SqFt: 2,701.28 Avg. List$: $199,151 * Avg. List$/SqFt: $79 Avg. DOM: 174.58

SOLD ... Multi-Family Listings: 78 Avg. Liv.Area SqFt: 2,652.16 Avg. List$: $206,803 * Avg. List$/SqFt: $83 Avg. DOM: 88.08 Avg. DTO: 64.94

* Auction listings are not included in this total Avg. Sale$: $196,974 Avg. Sale$/SqFt: $79

4-9 Units New Bedford, Dartmouth, Westport, Acushnet

ACTIVE: Multi-Family Listings: 15 Avg. Liv.Area SqFt: 4,115.87 Avg. List$: $216,325 Avg. List$/SqFt: $55 Avg. DOM: 228.73 Avg. DTO:

SOLD:  Multi-Family Listings: 7 Avg. Liv.Area SqFt: 4,905.29 Avg. List$: $229,971 Avg. List$/SqFt: $49 Avg. DOM: 361.71 Avg. DTO: 302.00 Avg. Sale$: $207,321 Avg. Sale$/SqFt: $44