Massachusetts Home Buyer Guide

Buying Tips For The Spring Market

In the Boston Herald's Spring real estate section April 4, 2008, an article by reporter Paul Restuccia discussed "some unusual pitfalls that house hunters need to watch out for."

I discussed foreclosures with Paul on Tuesday April 1, 2008.

"Foreclosures. Richard Rosa of Haverhill’s Buyers Brokers Only said purchasers should exercise care when looking at foreclosed homes.

“'Some bank-owned properties can be good deals, but almost all of them need work,' he said. 'If you don’t have the money to fix them up after you buy, the work will never get done.'”

“Short sales. Also use caution with 'short sales,' where a lender agrees to let a homeowner sell a home for less than the mortgage balance.

"Rosa got a bank to accept a $380,000 offer on Revere home with a $550,000 mortgage balance, but said lenders can take months to sign off on such deals."

Find foreclosed listings and short sales at MassForeclosed.com

Gary Dwyer, a buyer agent in Boston, had some good advice about purchasing homes that have been "rehabbed."

"When looking at rehabbed properties, beware of what Gary Dwyer of Buyer Agents of Boston calls 'caulk-and-spackle' renovations: Cosmetic work that merely covers up problems."

I have seen many properties marketed as "like new" that have had poorly done renovations.

Read The Boston Herald Article

Don't Fear Gradually Falling Home Prices

Yale economics professor Robert Shiller says not to fear gradually falling home prices.

In a February 21, 2008 article by Reuters news service, Shiller is quoted as saying that, "'There's nothing troubling about a gradual correction of home prices. If we keep our incomes at the current level and home prices go down we are richer, we can buy more housing.'"

It is sharp declines that erode consumer confidence and bring on recession, Shiller believes.

Read The Reuters Article

Multi-family Homes In Boston For Less Than $300K

As of December 21, 2007, there were more than 100 multi-family properties listed on the MLS Property Information Network for sale for less than $300K throughout the City of Boston.

Finding a decent multi-family property at a price that would allow it to be cash-flow positive was next to impossible just a year or so ago, but that is beginning to change.

Check out this three-family property in East Boston for $250K.

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Free Investment Property Analysis

The free widget below provides a basic analysis of a property's investment potential. Of course, a paid version also is available and provides more flexibility, but the free version below is pretty good.

I tell clients new to investment properties who want to take a conservative (and I would suggest smart) approach to investing in real estate, such as a multi-family property, to assume rental property will be rented 45 months out of the next 60 months (on average nine months per year). For example, if the rental income is $2,400 per month, then multiply $2,400 by nine to get a conservative estimate of annual income.

Your property may be fully rented in the first two years, but vacant nine months in year three. You just can't predict it. If it does better than that, well, you have that much more cash to invest in your second property.

Of course, if you plan to occupy a part of the property, then your analysis would be a little different. If it is a commercial property, and you are certain you can obtain a long-term lease with a financially solid tenant (two big "ifs"), using 45 months rented out of the next 60 for your analysis might be too conservative.

Powered by iAnalyzeREI: Real Estate Investment Analysis

More Than 400 Multi-Family Homes For Sale In Lawrence

With new foreclosed multi-family properties hitting the market in Lawrence, MA regularly, Lawrence has more than 400 multi-family homes, including regular listings, bank-owned properties and short sales, listed on the MLS Property Information Network, Inc. as of today.

Find multi-family homes for sale in Lawrence, Massachusetts.

Check out The Boston Globe's October 7, 2007 special report, including video, on Lawrence's foreclosure crisis.

Lawrence profile from the October 7, 2007 Boston Globe.