All Forum Posts by: Brian J Allen

@James K. in worcester you trigger sprinklers (typically) for the following.  There has been a prior fire, you do more than 50% rehab, you add a bedroom, you add a unit(2 to 3) or (3 to 4) and last but not least THEY JUST DECIDE TO MAKE YOU DO IT.  The other big trigger is basically if you touch the electrical with a permit to add a service, then you need to go to code with everything.  As mentioned above the prices are too high.  Sadly there are people who simply need a place to live who will out pay the people who want to make things better.  This is the double edge sword because if you fix things then the units are better and the rent goes up and no one can afford them.  If you don't fix them they are still dumps and likely unsafe (and the rents will probably go up anyway since the new owners have higher cost basis) What is happening is it is driving people from worcester to Webster/southbridge/northbridge/spencer and they are being replaced with people who have been driven from Framingham.  Just like the people from Boston got pushed to Framingham

@James K.. The market has simply dried up. Buyers think that everything will crash so they are on the sidelines. The FHA buyers want to purchase but the FHA NO FLIP RULE and the SELF SUFFICIENCY requirements make it very hard for them. The True investors don't buy flipped homes, and the 25% down buyers are just not around anymore. Keep in mind that we are flipping Multi family not SF. That market is a little different. The reason they only made $5k was they took too long and missed the market. I have another guy with rehab&Hold projects going. Same thing, taking too long. Probably should just sell them instead of trying to hold them.

@Shane Burlingame, it is so hard right now to flip in central mass,  my clients had 5 in the last 2 years, 1 we barely made $5k, and we have 2 going right now that are over budget and prices have dropped so they may just hold them.  Basically you need to be ready to go cash all the time to get a deal.  I have a couple coming up.  Let me know if you are interested and i can get you an address or 2

Give me a shout.  I do Worcester along with Webster and Northbridge, and have buddies who do Fitchburg and Southbridge.

@tarik kafel   Welcome to BP, let me know if i can be of help in the Worcester Area for off market multifamily.

@Ramin M.. i would be glad to help you find something in Worcester.  I also represent a dentist who has multiple locations and is looking for more dentists.  Please let me know if I can help.  Currently I have 5 off market 3 families, 3 off market 4 families and 2 off market 6 families that might interest you.

@Nick Noon. The numbers really don't matter in Worcester, it is the neighborhood/Location/Lot that provides long term value.  Realistically $330k is a good price but it is a great price if you are in a good neighborhood, have parking, and a flat lot with some space in the back.  Tenants are key as well.  A vacant building is worth a lot more than an occupied building as you can fix things so you don't have issues when it is occupied.  Also, you can pick your tenants which is HUGE.  So basically if the Neighborhood has the qualities you want, and you can pick your tenants you will do well.  If you pick the wrong neighborhood and prices start to drop (which will happen at some point) then you will regret it.  If you have the wrong tenants even in the right house in the right neighborhood, it will be the bane of your existence.  LOCATION and TENANTS are the most important things.  I used to say LOCATION 3X but this is Massachusetts and the tenants have a lot of pull.  Let me know if you want to chat off line.

pm me and i can share some thoughts, worcester is an interesting 

@Irving VizcainoThere are very few places that cash flow, you need to move tenants and replace them to get where you want to be.  Most people are selling because they cannot do that or will not do that themselves.  I know of places with $800 and $900 a month tenants who should be paying $1500-1700 and the owners want to price the buildings as if they are at $1500.  If you can solve that problem there are places to buy in Worcester.  If all the rents are in place, there are plenty of buyers ready to go who are probably doing a 1031 out of something else.

Worcester has experienced a big run up in the last couple of years.  The key is really knowing the traffic patterns and where the jobs are. There are 4 main tenants in Worcester, Section 8, long term renters, people who work in Worcester, and people who work east of worcester.  Depending on what you are looking for, you can find the right location.  Low inventory right now 36 multis for sale, but there is a lot of off market inventory if you work with local agents who are really involved with the market.  Love to help if you are interested.