All Forum Posts by: Brian J Allen

John, 

Keep in mind that you may have difficulty replacing the roof if you have issues.  Often in Worcester they call the roof "historic" so you have to apply for a waiver to replace it with asphalt shingles if you want to do that.  It can take as little as 6 weeks and as long as a year to get approval to remove the slate roof.  Good thing is that there are reasonable prices for roofers in Worcester.

i have had many and some are good and some are not.  The key is to have someone who is familiar with the product you are buying.  If you are doing a worcester 3 family, find out how many they have inspected.  I just did an inspection on Sunday and asked the inspector if they checked to see if the knob and tube wiring in the back hall closet was live.  And they had forgotten to test it.  To any buyer's agent that is the first thing that we look for.  Inspectors often treat SF homes the same as MF which is an issue.  Also, I recommend getting an inspector team that works together, they are faster and often find more things.  There are at least 3 that work in Worcester.

One of the easiest moves is this.  You have the Pantry kitchen and bathroom back to back on one side of the house.  In most 3 deckers this is the only "wet wall" in the place, that is it has the Waste stack and the hot and cold water.  Many times you will see someone put a washing machine in the kitchen on that wall since it is so easy to do on the plumbing side.  I think the cheapest and easiest way to add value is to put the kitchen sink on that wall facing the kitchen.  Now you have taken the sink out of the pantry and you can make that into a 1/2 bath with laundry or a 3/4 bath.  Since most places have the storage shed on the back porch you can either cut into that to make the back bedroom or closet in that room bigger, or you can run a new plumbing stack and put washers (and dryers) out there.   I have been in 1500 multis in worcester in the last 4 years and sadly the "modern kitchen" or the multiple bathroom situation is in only about 150 of them that had hit the market.  People either are keeping these or they don't exist.  I think your rent goes up and you have lower vacancy so people are more inclined to keep these, once they get them to that point.

I agree with Charles here. Worcester is Street by street for rental and turnover. Make sure you work with an experienced agent who knows the best places for rent and appreciation. You can still get 10 CAP, even on the MLS, but you will have some projects to do when you buy to keep that multiple going. The best places are down to a 5CAP, but you can find an in place building that when you get rents to market you can be at a 7 CAP.

I Echo Michael H. here.  The upside has been taken for properties with market rents.  Best way is to buy with below market rents and get the rents to market. That is the easiest strategy.  Owner occupant strategy is good as well, if you can find a place with a vacancy, as those tend to have the prices driven up.  Of the 18 we have closed so far this year in Worcester, we have done the best with low rents on solid properties in solid rental locations.

Ethan,

I would be glad to shed some light on things for you regarding Worcester.  First off you are correct, prices are lower in Worcester and returns are higher.  Rents in Worcester are creeping up and have gone up approximately 20-30% in the last 3 years, prices have followed.  As with any city, there are different sections which have different characteristics.  Geography plays a big role here due to the 7 hills and I 290 which cut its way through the city in the 60s.  Rents differ by neighborhood, parking situations and quality of units.  All of these can be explained to you by a solid multi family buyer's agent who does a lot of work in Worcester.  Do not get tricked by price without understanding the location you are buying, or the quality of the building.  Most of these places were built from 1890-1920 and it shows.  Time has not been kind to many of them, but others have been loved and maintained.  I have personally seen 1400 distinct properties in the last 3-4 years and I recommend you see at least 20 buildings before you make an offer so you can see the nuances of the market.  Best of luck, Worcester is a great city and has seen a renaissance over the past couple of years, most notably with Polar Park which opened this spring.

Looking for help on timing and finding a value property in Boca for my daughter. Lease ends I. December and want to hit thr ground running

Sabrina,

The Key would be to identify these folks who are in stress of foreclosure, and help them find a solution.  Typically there are groups that help with foreclosure, but often times their goal is to keep people in their homes.  Sometimes people have made a mistake in becoming owners, sometimes people's situations change and they should not be homeowners.  Homeownership is a wonderful thing, FOR THE RIGHT PEOPLE, and not for all.  There needs to be education about, LETTING THE HOUSE GO, and moving on before you get in too deep.  Perhaps we can reach out to these folks, explain they have equity and help them to sell their houses, before the 18 month saga of foreclosure which not only hurts the owners, but hurts the tenants and the neighbors as well.  How can we find that solution for folk, and simultaneously get these houses into the hands of the people who are best able to maximize value?

Looking at the numbers it will be hard to predict many foreclosures.  Anyone who bought 2 or 3 years ago should have enough equity due to rising prices.  Let's say UP 20% minimum in Worcester, MA.  So they should be able to sell and become whole.  And the average credit score of people originating mortgages is way up as is the amount of down payments.  The people buying this year may be overpaying, but they appear to be in a financial position to do so.

Send me a PM and i will tell you in 5 minutes.  If i cannot, i have a guy who can.  I love this stuff about worcester.  Worcester has 90 miles, and 1000 segments of private roads in the City.  In addition to that there are tons of "paper streets" where the street was never built.  With the address there are a couple quick ways to find that out on line.