All Forum Posts by: Brian J Allen

Agreed, Worcester is super hot.  Even the junk is selling, things with no parking on busy streets built into hills!  

The key to Worcester is the neighborhoods.  Many are very livable with parks and access to the North and West with places to hike or go skiing.  Providence has better jobs for higher earners, but Worcester has tons of $50k jobs which always make tenants for life.  People stay in their neighborhoods and live there.  There are also neighborhoods with mixes of multis and SF homes.  Also, the colleges are spread out and places like Clark and WPI are integrated into multi family neighborhoods not gated off from them.  Always willing to discuss Worcester with anyone anytime.

There is such interest in Worcester now that a lot of the sellers are going MLS and the prices are rising. There are still off market deals, but cash buyers are able to get stuff on MLS and they are not quite as savvy.

Congratulations!  You are not alone in Worcester.  Due to the older housing stock there is huge upside if you buy right.  The key is finding things with upside and having the plan in place.  Currently the vacancy rate in Worcester is about 2% so you will ultimately have tenants.  I think my advice would be to find something where you can add a 1/2 or a 3/4 bath and laundry , as there are so few multiple bath rentals in Worcester that you can command top dollar and get great tenants willing to overpay to have that.  Good luck on the next one.

I will likely be out there today looking at a couple OH multis in Worcester

Malachy, Most of the meet ups are remote.  I go out with a bunch of agents a couple times a week to look at Multis if you want to join.  Usually Saturday mornings, and i can show you around.  reach out off line if you are interested and we can meet up

Sustainable Comfort is great, if you are looking for full service as they have a full time construction arm, that works with rehabs of 3 deckers.

To add to Steven here on #4, don't bet on appreciation in Worcester.  Historically the appreciation in Worcester has come from 2 distinct factors.  1 Rising tide lifts all boats= all real estate went up for MACRO Economic Factors, supply/demand imbalance, Low interest rates, increase in money supply. or 2.  MICRO Economic Factors, and this one is simple in Worcester.  RENTS go up PRICES on MULTIS go up and they almost match.  Rents in Worcester have gone up 30% in the last 3 years at least, which has driven leveraged real estate to go up.  The huge run up on these prices has been a COMBO of both the MACRO- Low supply, low interest rates, and MICRO, the run up in Rents, specifically the increase in SECTION 8 allowed rents.   When buying in Worcester look for 1 LOCATION and 2 QUALITY, these are the long term factors that allow you to ride out the dips!!!!!

Samuel,

There are a bunch of us who go out a couple times a week looking at multis if you would like to join us let me know.  The key in Worcester is to know the neighborhoods and the traffic patterns as that is huge once people go back to work.  Saturday is the big day to do Open Houses to get an idea of the quality you are looking at since most of the houses are over 100 years old and some have had more extensive rehab then others.  Best of luck and let me know if I can be of help in your search.

Brian

that spread is about right.  The key is to buy the neighborhood so you can win on the sale.  The appraisals are hugely dependent on similar comps in the neighborhoods.  Worcester is a street by street city, so if you are off by 3 streets you might not appraise!