All Forum Posts by: Brian J Allen

there is a bunch of off market inventory, but they will not show with out proof of funds and bank letters from commercial banks.  not just a pre approval 

Congrats, great to have a plan and execute on it.  Time for the next one!

i think you are accurate on those numbers.  Building is expensive and the time factor of waiting for the inspectors when you GC yourself is tougher.  you will need to make sure you use electricians and plumbers who do a lot with the city to keep your projects on track.  there was a 2 family on Greenwood st that would have been a great teardown, but i think it is UAG.  remember to price your comps to the neighborhoods

lots of stuff going on here for you.  Good to get answers prior to starting.  Toughest part is gettting land in Worcester which is scarce.  Sometimes it is easier to buy and tear down.  Multi/townhouses sell very well, but in worcester it is all about neighborhoods.  I have a client who finds land for people and has a good deal of experience building, but he has moved onto other projects, mostly contracting to avoid the risk of time/holding costs of building.  

I'm here in worcester,  going to a bunch of OH today for 3 deckers.  15 Ames, 71 Maywood, 47 Canterbury, 35 Bowdoin.  I will see you out there if you are looking

As an economist i have been tracking a number of factors.  Houses that are move in ready have a premium.  Others have a discount.  There is not as much money chasing stuff as there was a couple of months ago

Ryan, 

Good to see you jump in here.  I have seen Phil out looking at places.  Worcester is on an upswing.  The downtown now has high end options not seen before.  And the marginal neighborhoods are getting better.  In terms of the macro real estate market there are tons of buyers looking for deals but not much out there.  Trying to get some sellers into the market but most think prices are still going up.  Once the prices peak, and i think they are close, more sellers will come to the market to sell their multis. HC93

Amen Phil!  lots of good info

There are only 51 multis for sale in Worcester right now. Most of them are 2 families.  This particular property you discuss is one of the lower priced 3's for sale, and as you know it is a short sale.  The asking price of $272k is the approved price.  It is possible that you can get it for less but it is unlikely.  There would be a line out the door at $250k.  This would probably sell at The $272k if it did not require a cash buyer and close in 10 days.  That prices is likely close to market price.  I hope that helps.

B

Cameron,

Best of luck to you.  It is good to run the numbers, but the most important thing is to know the location you are looking at and what sales prices and rents the neighborhood can support.

• The price for this place is $272k and that is the short sale price, i have spoken to the agent and that is the best they can do.
• Rents are likely between $1200-$1300 per floor, no real need to improve the units as the neighborhood is unlikely to support higher rents at this time.  There are 2 BR units within 10 houses away that rent for $600-700
• This property is also in a flood zone, it is in the firm remarks so $2500 for flood insurance, not only that but your basement is stressed from the various floods over the years
• probably $2200 for insurance if you live there, and higher if you don't
• 2017 Taxes are $3701, 2018 will be higher as 3 families assessed values in Worcester went up 9% on average
• keep in mind that when this place is "fixed up" the market value will be about $310k as there are 4500 of these in the city and this is on a 3810 SF lot in a RG5 Zone which requires 5000 SF so it will be hard to ReFi out of whatever hard money you use.

Let me know if you want a tour of Worcester before you spend too much time running numbers.