Thoughts on This property

[Duncan Banks]

I have been making an effort to get into my first Multi, but it is slim pickin's in my area (south/ east Massachusetts). It seems investors are scooping up the cherries before they hit the real estate websites. This 4 family came up today. I haven't gone and seen the property but the positives seem fairly obvious. 3 units currently rented, reasonable price (not great), near public transit, one bedrooms, from the street view the neighborhood looks nice. Thought i'd post it here and see what a few of our veterans have to say.

http://www.zillow.com/homedetails/39-Harvard-St-Whitman-MA-02382/2111107193_zpid/

[Shaun Reilly]

Hi @Duncan Banks

Interesting place. At first I actually thought it might be a dud looking at the actual MLS listing. 4 units 3 rented and they give rental amounts for all 4. 3 were between $550 and $625 and one was $800, I made a guess to which was the vacant one. :)

However those rents look quite low. Looking at Rentometer it gives the average rent for a 1BR in that area as $840 with the median being $800, also says >90% are $700+.

Looking at the MLS rentals in the area seems to validate this with one studio that rented at $675 and nothing else listed for less than $875. The 2 most recent 1BRs rented were $900 and $1,100(!).

Pricewise going against the comps it looks pretty decent. No other 4 families active or sold in the last 6 months so not any other inventory. It is actually the least expensive multi that is active on the market. Next cheapest is a duplex for $30K more. That has 2 3BR so more attractive units that will rent for a lot more, but not as much likely as the 4 units total.

I'd say it is worth looking at a little more.

BTW I see you said it "Just came up today", it actually just had a price drop of $20K on 10/9 but has been listed since 9/6 so it isn't a "hot" property, which is a good thing.