All Forum Posts by: Danielle McKahn

I agree that it is more of a buy and hold than a flip market. Lots of solid long-term investments to be found. There's lots of easy value to be added in old housing stock...space being underutilized....all perfect conditions for the BRRRR strategy.

There will be some localized appreciation driven by people escaping NYC and Boston prices for cheaper and more space... We've seen this in Northampton, but it's a small place, as prices have gone up we've seen people start moving to Easthampton, Florence...and Holyoke to a lesser extent. But Holyoke has greater long-term promise. Given that the big cities seem to be having a hard time controlling their runaway housing prices, and given that Western Mass isn't that far away and will be better connected by rail soon (to NYC), and given that there are many jobs/household configurations that require just one foot in the door in the City, I think if you pick the right spots in Western MA you will see some genuine appreciation....

@Ryan Jopson

Yes, the dishwasher and washer/dryer combo have specifically been mentioned to me by some entering tenants as among the main attractions... So far, our investments have been in Northampton, within walking or biking distance of downtown, so that also adds to the quality of tenants we're able to attract. 

Hi Ryan, I generally follow this 'value-add" approach and I've had success with it. I generally include dishwasher and washer/dryer in house or if possible in-unit. I get nice energy star and often stainless steel appliances (or white, depending on the unit). I use MassSave and the Heat Loan program to insulate and if needed upgrade heating equipment. I used the MA lead credit to make the units lead-compliant (usually). I haven't gone all the way to granite countertops but do get high quality cabinets. In general, I watch Craigslist for the range and then offer at the high end of what I have seen. But there's always someone who offers first at a higher rate... Right now, I'm on the middle of a significant development that will by necessity need to be at the very high end of what I've seen, but I think it will be able to command more so I'll offer higher....

Generally speaking, I've found this approach to bring in really high quality tenants who stay for several years, or more. But the best part is that often I get handed new hig quality tenants from the old ones when they leave... So I don't often need to go through the hassle of advertising and sifting through multiple applications, and I am able to keep vacancy close to 0.