All Forum Posts by: Brian J Allen

PM me and we will get you out here!  Thanks Ernest!

https://www.wcvb.com/article/booming-worcester-rea...

here is the link

john, 

The Refi is interesting, cash out refis are harder then HELOCs. You can get a credit union to do a drive by appraisal for a HELOC and the brokers can tell you prior what it will appraise for and you probably dont have to pay for the appraisal. Fro the cash out best option is probably a mtg broker. The broker can probably give you some direction. if you need help with comps from MLS PM me and i can pull some for you. Remember Worcester is neighborhood by neighborhood so you can help the appraiser a bit. You can also consider selling and reinvesting your winnings then you never have to worry about the cost basis of your investment.

John,

When you are renting, the rules don't apply. I was in Two 3 Family homes yesterday which converted 2 BR units into 3 BR units. On the MLS they typically use the city assessors data which will call it a 2 BR. Section 8 may call it a BR if it is over a certain Sq Footage and has a closet and then your approved rents go up. In terms of doing a refi the house would be compared to others of the same value and adjustments made for BR or SQ FT. Your prospective tenant may prefer a play room vs a BR in the basement so it is a little tricky. But clearly 3BR units have a higher value then 2 BR units.

check out these things. I saw one on a basement 3 decker for a second egress and it was approved by the city.   

check out Bilco company egress window wells on google, the things are cool

https://www.bilco.com/category293/Egress_Window_Wells

Jason,

You may want to look into selling your 2 family and leasing it back for a year as a TAW while you shop for your SF.  The lack of inventory will cause you to pay more than you could at a later date.  The other option is the wait until the market drops.  If your 2 is a nice owner occupied 2 family, then it competes with SF homes.  There are so many people priced out of the SF market still that they will still be waiting when those prices drop.  As long as the rents stay high, you could still get solid pricing for your 2.  Hope that helps.

Ryan,

Boots on the ground is very important.  If your father is around he can check out the property likely to limited extent.  it is rare to find a place in Worcester at this point under $200k that has not had a fire or something.  As said above, most of these places at this price point will not qualify for conventional loans and you will need to have cash or hard money.  It is a great idea so keep looking.

in solid areas $1100 $1400 is good, in all 3 Decker neighborhoods i would say it would work with $900, $1200,  i was in a place off shrewsbury st 2 days ago which was bare bones, but good location and 3 BR was $1650!!!! and they were getting it

Guys, Make sure you are very familiar with the area you invest in and who lives there.  The tenants will make or break you.  Also, consider the cost of hiring a property manager vs your time going back and forth if you are far away.  Remember things never break when it is convenient and you can't plan for that.  Find out what the real local rents are and what the tenant demographic is.  You need to be comfortable asking for your rent, it is much easier to do so with people who one time hope to buy a home, then from people who are working month to month to pay their cell phone bill then you.

reach out via PM and we can get together to chat

Adrian,

If you plan to manage the units yourself, i would suggest picking a market.  While Leominster and Fitchburg are close to each other and have somewhat similar market characteristics.  Worcester is not like Leominster/Fitchburg.  Worcester has lots of sub markets, colleges, East Side, West side, Shrewsbury street, burncoat/Greendale, and the mid city properties.  Once you pick city you should find someone to help you in that particular market.  I can help you in Worcester, but not in Leominster/fitchburg