All Forum Posts by: Michael H.

Happy to connect with all as well, I second Andrew's Worcester Real Estate Meet-up, great events. 13 Units in Worcester and growing. 

Mass Save loan will only go up to $10K for Knob & Tube Removal FYI. It should cost you about $40-60K to rewire. I have electricians that can help. 

Regarding insulation, how are the windows? That's often a big area to improve heat efficiency. Mass Save will give up to $10K for that as well. 

I've done $140K worth of HEAT Loan projects including windows, heating systems, knob and tube removal + insulation work on 3 buildings so I am pretty familiar with the programs at this point. All in Worcester. Feel free to reach out with questions. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $340,000
Cash invested: $130,000

3 Family investment property in the Green Hill Neighborhood of Worcester. Large cash flowing triple decker on a corner lot with great access to downtown, the Lincoln street retail hub and I-290. Steps from the 500 acre Green Hill park.

What made you interested in investing in this type of deal?

It was adjacent to two other properties my brother and I owned. Good basis on the deal with strong upside potential.

How did you find this deal and how did you negotiate it?

It was on the market for several months without accepting any offers. We offered cash initially then raised our price. The seller was very close with his tenants and did not want to disrupt them so we offered a very long closing timeline (8+ months).

How did you finance this deal?

Investment loan for the purchase. Private money for the renovations.

How did you add value to the deal?

Two of the three long term tenants who were paying 1/2 of market rent moved out in the 8 month closing process. We are renovating their units and renting them at market. We are planning to refinance next year given our low purchase price and investment in the property.

What was the outcome?

Work in progress.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Joe Galvin with Movement Mortgage. Doug Mercurio with Mercurio Law

@Jonathan Bombaci Glad we got the worcester meet-up back! See you there!

Hi Nick congrats on graduating and for aligning your career with your investment goals. Feel free to send me a message if you want to connect. Graduated two years ago and have had a good start in both aspects. 

I have considered converting my pantries into bathrooms and removing the wall dividing the kitchen and living room. I have successfully divided the living room / parlor into two separate rooms to add a room. Funny, I could see my properties in my mind while you were describing the issues above, and have seen many others that fit the description! 

Worcester is a fantastic city. Easily the best market in New England right now for getting both appreciation and cash flow. @Brian J Allen's advice above is 100% true. Are you looking for an investment property or an owner occupied property? That will have a major impact on your strategy.

The best deals right now are fully occupied properties with below-market rents, assuming you can carry the costs for the roll-over.  You need good cash reserves for this though as the cash flow won't be there for the first 12 months while you bring the units to market rent. I landed a great deal that is closing later this year with this strategy.

Strategy two is owner occupant investments, with a win being defined by living for free. You can also achieve some cash flow with this strategy, especially if you are comfortable with DIY and room rentals in your occupied unit. The market is very competitive for these owner occupant deals so the pricing keeps rising but you can easily make a deal work with an with the strategy above. I know because I've done it twice now! 

Feel free to reach out if you'd like to discuss either of these or the market in general!

I have spoken with Joe Galvin at Movement Mortgage about these. He was referred by a few people. Definitely give him a shout. Also happy to connect if you want to chat about the Worcester market! 

@Jonathan Bombaci is one of the top investor-oriented brokers in Lowell, perhaps he can help. Lowell is a great market 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Worcester.

4 Family house-hack in the Green Hill Neighborhood of Worcester. Cash flowing four family on a corner lot with great access to downtown, the Lincoln street retail hub and I-290. Steps from the 500 acre Green Hill park.

The building consists of 3 studios and a three bedroom. I plan to re-finish the basement and attic to add an extra 1000 SF+ of living space.

What made you interested in investing in this type of deal?

Great real estate with a large lot, parking, proximity to Green Hill park, and location at the top of the hill.

How did you find this deal and how did you negotiate it?

Craigslist for sale by owners.

How did you finance this deal?

FHA owner occupant loan at 3.5%

How did you add value to the deal?

Negotiated a good deal. Plans to add living space in basement and attic. Renting apartments at market rents.

What did you learn?
Don't give up on a deal. I initially engaged the sellers in October of 2020. They had to settle with a trouble tenant which took several months to move them out. I closed 6-7 months later in May of 2021.