All Forum Posts by: Brian J Allen

@Edgar Vigil. If this property is in Worcester and you are paying $560k for a 3 family you better not put more than $50k into it as you will never refi out. You are trapping your equity there. you could buy something done for $575k and get cash flow right away with NO CAPEX. You can get awesome DONE properties for $675k. Also, remember in Worcester the Rents can fluctuate 25% from one area to the next and that is the key. Also, Worcester has areas that are management intensive, that is you have to work every month to get your rent. Remember the median income in Worcester is under $50k so close to 60% of renters struggle month to month paying their bills. Now with increased electricity prices and heat prices this will be worse as well. Hopefully you are working with a realtor who knows the city and the areas so you can price your projected rents accordingly. Also, remember that if you don't have parking you will have to find new tenants every year (unless you are next to a bus line and your tenants don't have cars) since the winters are brutal and 1 bad storm can make it impossible to park on the street for weeks at a time.

in Worcester it is all about LOCATION.  if the location is great then maybe you do it.  if it is marginal, RUN RUN RUN.  you can fix the house but you cant move it.  There are many places where the house is like that because it is not worth fixing it.  Make sure you triple check the location.

@Henry Li the WPI rental market is fantastic, but as @Chris Seveney says it is very small.  Rents are running around $700/BR for good stuff.  I have clients who will only buy there.  Last year i did 4 multis in that area and all were super happy with their purchases,  I have one under contract right now as well.  There are lots of good property managers in Worcester for that area.  Reach out off line if you want recommendations.  The best property managers are local people who do it for select clients.  

I believe if you are in the market you should constantly look for deals.  There are deals in every market.  If the market dips more, then the owners of the good properties won't sell them.  The best opportunities are currently off the mls, and they typically are.  The good sellers only sell when they have a reason, like getting something they prefer more for some reason.  If the market tanks like in 2008 there might be foreclosures, but those typically come with tenants who don't pay and are a mess.  Taking time off does not mean that there will be better deals down the road.  If you are in the market you should be shopping.  You can make your offers based on a declining market and see if sellers agree.  Trying to time the market is difficult.  If you find a house you like in an area you like, make an offer you are happy with.  Over time you win with good houses.  It is like buying a Toyota, if you plan to drive it 300k miles you can pay a little more to get the options you like as you will win in the long run.

@Anton Filiptsov. I echo what Klye and Sabrina says.  Our group is finding great deals all the time in Worcester.  You need to find a good agent who does multifamily in the Market that you are looking at, be it Worcester, Marlboro or Framingham.  You need someone who can spend time with you and guide you about the process until you are ready.  We just picked up a 3 family with a full basement yesterday for a client off market in a cool location for a client.  There is stuff out there but you have to work with someone who is seeing 5-10 properties a week in your market and really understands you and what you are looking to accomplish.  Best of luck.

@Chris Wang I realize that you are trying to save the most money here but it is important at the beginning of your investor journey to think long term.  The hardest part of being a property owner, (and that includes your personal residence) is getting tradespeople to show up in a timely manner and give you a fair price.  I feel it is best to try to build those relationships early on.  You can definitely save money by doing things yourself, and by micro managing project.  I suggest you find a solid general contractor and let them run your project for you.  Surprisingly they may even be able to source materials cheaper than you can and you could end up saving money.  The key however, is to think long term and who you will be able to call when you have a larger or more timely a project.  Best of luck with your Condo purchase, and Welcome to Worcester.

Feel free to reach out if you want specific contractors

Luke 16:10. Whoever can be trusted with small things can also be trusted with big things.  Whoever is dishonest in little things will be dishonest in big things too.

I'm sure he is busy but Marc Feldman. 508.867.5082. tell him i say hi and he will text you back

For all on this forum, Keep in mind that as a licensed real estate agent it is not allowed to tell people what neighborhoods are good or bad. It is also illegal to categorize one neighborhood as containing a certain type of people. We are only allowed to point out geographical positives and negatives.  Hills, small lots, lack of parking, traffic choke points if you are trying to get to one location from another, and similar attributes.  That being said, the closer you are to job centers the better your prospects for renting are.  Traffic and hills are the biggest determiners of what a good location is.  Find a local real estate agent and go for a ride for a couple hours and have them show you how traffic works in the city and where the jobs are along with the major bus routes.  Once you see this, you will understand the city.  LOCAL is the key.

I wanted to give a public thank you and a shout out to 

AMEN