All Forum Posts by: Brian J Allen

I think your purchase price may be a little low. Not much at all under $200k or even $250k. If you go North or west of Worcester maybe you get those numbers but there is not as much demand for the finished product. I think if you shoot for $250k purchase and $325k ARV you are more on target. Yes, these places are old. The key is to pull the appropriate permits from the cities as banks are now looking for those things. I'm out looking at these things every day in Worcester

Jerry,

I see about 5-10 multis a week, over 1100 in the last 3 years.  would be glad to go through a bunch of houses with you and show what we look for in the good and the bad in Worcester to help your education!

Brian

That would be a wonderful addition to the Worcester Rental stock.  Depending on location you could get $2/Month per SF with decent amenities.  If you can keep you construction costs down you can do well.  The biggest issue is land acquisition cost, and construction cost.  Land varies greatly by location in Worcester.  And there are various projects that are in the works which will add to the housing stock in that quality/price point, which is sorely lacking in Worcester.  Feel free to reach out and we can discuss projects that are currently available and others that are in the works in Worcester.  Rents climb each day and people appear to be looking to smaller cities like Worcester that provide location and vibrancy of a bigger city with more space to spread out.

I have a bunch of guys.  PM me.

I would look into some of the local credit unions around Worcester. They like these assets and have a better understanding of the value based on "market rents" and location which determine the true value. Just because someone is willing to give you 80% LTV doesn't mean it is the best deal. A lot of times they offer the 80% and then kill you on the appraisal (though they say they wont)

You can get 8 CAP in worcester with decent properties, and Worcester has shown a lot of rental growth

I can put you in touch with some people in Worcester.  If i were to price it i would say $150/SF not including land or sewer tie in.  so $420k construction cost, but you may be able to shave a bit since you have 2 houses basically under one roof.  I would be glad to help.

All depends on the project.  If you had a fire and need sprinklers there are certain guys.  If you just need paint flooring and new appliances there are other guys.  the stuff in the middle is the hardest to price as everytime you open a wall, WHO KNOWS!

Glad to talk to you about Worcester, MA

I would be willing to have a conversation about WARE, MA which has over 10CAP