All Forum Posts by: Brian J Allen

@Karl Kauper with a SF you can require the tenant to take care of lawn and snow, but they might not be up to your standards.  There are plenty of local landscapers who you can hire to do everything.  I might suggest going directly to one of these guys.  Let me know if you need names in Sutton.

Jaclyn Packard

https://packardlawoffice.com/

@Karl Kauper Sadly MA is a very tenant friendly state.  The tenants can bind you up for a long time.  And it is difficult for you to refuse to take their rent, as there are many agencies that will pay up to $10k in back rent and rent moving forward.  Not sure if that is what you are looking for.  I just served a 30 day notice in Millbury (I live in Sutton but my rental is in Millbury) and I am hoping that the $4k I offered the tenants to actually move out on time is enough for them to find somewhere to go.  Sadly there is so little inventory that many are simply trying to last as long as possible and wait for the constable to tell them that the moving trucks are here for them.  They often don't have enough $ to take their stuff out.  Whatever you do, please make sure that you get something signed saying that are completely gone and have no claim to any possessions they left behind.  I had a client who thought they did the eviction correctly, and ended up in court as one of the occupants who had moved 3 months earlier said her stuff (including 3 rollex watches) was thrown out.  It cost him another 3 months before he could start work turning the unit.  Best of luck.  DM if you have any additional questions.

@Jack Lee is is great to know how to structure the deal, another is to find the property and make sure you are not missing the issues you will run into with an older house.  Let me know if you want to see some properties in Worcester.

A recent statistic from Banker & Tradesman caught my attention, highlighting a growing concern in the housing market. According to Zoocasa, the annual median income in Greater Boston has increased by 22.4 percent since 2018, yet in that same period, the average monthly mortgage payment has jumped by 27.5 percent. The disparity is even more alarming in Worcester, where median income has grown by 19.7 percent, while mortgage payments have surged a staggering 82.9 percent.

It’s no surprise that home prices in Worcester have risen, but I didn’t realize the jump was so dramatic.

What I’m seeing on the ground is that many of the buyers for multifamily homes (multis) in Worcester are coming from the east—places like Greater Boston. Unfortunately, very few local Worcester residents can afford these properties, creating intense pressure on those who live and work in the city. As rents and home prices rise, long-time residents are being squeezed out.

Worcester is increasingly becoming a bedroom community for towns like Marlborough, Hudson, Natick, and Framingham, as those areas become more expensive. We seem to be returning to the “Drive until you qualify” days, where homebuyers are forced to move further out to find affordable housing.

For someone who works in Marlborough and only commutes a couple of times a week, buying a multifamily home in Worcester might seem like a smart investment. However, the rapid rise in housing costs is dramatically impacting people who live and work in Worcester, pushing them farther west and south in search of more affordable options to buy or rent.

It is hard to find a duplex in Worcester that cash flows.  It is even hard to find one that works as a mtg helper anymore.  There are some triplexes out there that make sense but most of them trade off market.

I haven’t come across many articles connecting the Dunning-Kruger effect to real estate, so I thought I’d share my thoughts.

In short, the Dunning-Kruger effect explains how, when you know very little about a subject, you tend to think you know a lot. As you learn more, you realize how much you don’t know. Eventually, with time and experience, your knowledge and confidence begin to align more realistically.

This concept is incredibly relevant to real estate investing.

I encounter this often: an investor seeks advice but quickly tells me how much they already know. In their mind, they just need some local knowledge and access to off-market properties. They’re convinced they can pick the right house and make a fortune. In the last five years, I’ve had close to 10 investor clients who either became real estate agents or had their spouses do so—because they were certain they already knew enough to handle it on their own.

From here, I’ve seen things go in two directions.

One path is overconfidence: they rush out, buy properties, and quickly get themselves into trouble. Their perception of their skills far outweighs their actual knowledge, leading to costly mistakes.

The other path is paralysis: they begin to realize how much they don’t know and become stuck, afraid to make a move. This "analysis paralysis" can prevent them from acting on opportunities out of fear of making the wrong decision.

I’ve experienced this journey myself. Five years ago, I thought I had all the answers. But around three years ago, I realized just how much I still had to learn. I started listening more to other agents and experienced investors, which has helped me grow tremendously. Today, I’m in a place where I can share my knowledge and experience with clients, while still valuing their input and perspectives.

The Dunning-Kruger effect reminds us that learning is a continuous process. In real estate, as in anything else, the more we grow, the more we realize there’s always more to know.

People often ask me why I choose to buy investment properties and other real estate. The answer is simple:

Labor is finite.

We can only work in the present, and once that time is gone, it’s gone for good. If you take a day off and don't earn, that day will never return, and neither will the money you could have made. We all have a limited amount of time to work, and there’s a constant push to maximize that time to earn as much as possible—so we can enjoy life beyond work.

Most people work to meet their immediate needs—food, clothing, and shelter. When they have a little extra money, they invest in things that don’t lose value right away. Durable goods like fridges, cars, and houses give us more control over our time and resources. A fridge keeps food fresh longer, a car saves time by reducing the need to walk everywhere, and buying a house ensures your money doesn’t simply expire like rent.

But as investors, we’re aiming for something bigger. We take the money we’ve earned and make it work for us. In real estate, this means buying properties that generate income—while we sleep—and (ideally) appreciate in value over time. Many people believe investing in real estate is a passive activity, but that's rarely the case. There’s always work involved.

Ultimately, what we’re trying to do is transform a finite resource—our time—into something that can last indefinitely. Real estate is one of the few investments that allows us to take today’s effort and turn it into long-term gains that can continue even when we're no longer actively working.

That’s why I buy investment properties. I’m not just thinking about today, but about building something that lasts far into the future.

@Robert Cardinal welcome to BP.  Im out all the time in worcester if you would like to meet up.  I was in 10 multis yesterday which is a typical Saturday.

I agree, the Government is NOT YOUR FRIEND