Quote from @Bud Gaffney:
I think Western Mass also cash flows, but I don't know the market out there much.
Fellow cash flow investors can expect ~$200-$400 per door in Western Mass, depending on building size, area, tenants, etc. There are some unique elements about investing in this market that investors should consider:
- Stagnant job market and economic outlook. Some big employers are leaving this area, lots more NGOs/Non profits popping up out here.
- Difficult and varying building inspection requirements. Each town has their own "checklist" for a permitted renovation and or build out. One town requires seismic analysis to be done on brick apartment buildings. This analysis costs north of $100K. We are known to have notoriously difficult and unreasonable building inspectors.
- Low tenant quality in some inner city areas
- High crime rates in most rental areas, e.g., Springfield, Holyoke.
- Common to all of Massachusetts, the legal environment favors tenants heavily, and in Western Mass courts, the tenants have all the rights.
- Contractors are more reasonable than Boston rates, but the solid ones are few and far between.
