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What Does A Multifamily Home In Lynn Cost?

Interested in buying or selling a multifamily home in the Lynn or North Shore area? Your first move should be to find out how/ what the market is doing? Find out what’s selling and for how much. Want to know what’s happening with Lynn Multifamily home sales and rentals?

Here are Lynn’s multifamily sales and rental market statistics over the last 6 months.

Total Multi-Family Listings SOLD: 137

Average Living Area by Square Feet: 2,839

Average Listing Price: $410,045

Average DOM (Days on Market): 14.87 Days

Average Sales Price: $411,680

Average Rent for 1 Bedroom Units: $1,302

Average Rent for 2 Bedroom Units: $1,568

Average Rent for 3 Bedroom Units: $2,831

Average Rent for 4 Bedroom Units: $2,020

Want to see sales data for another local area?

I Want To Know My Home’s Value!

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What Does It Cost To Buy A Duplex Or Triple Decker In Roslindale?

Roslindale Multifamily & Rental Market Data

Are you a current or aspiring landlord in Massachusetts? No matter how many years you have in the rental business, fully understanding your local market is one the most important thing you can do to ensure your long-term success.  Receiving regular market updates will help you determine when’s it time to buy and when it’s time to sell. It will also allow you to see what your apartments rent for in comparison to your neighbors. Should you be increasing rents?

Here are Roslindale’s multifamily sales and rental market statistics for the month of September.  

Total Multi-Family Listings SOLD: 16

Average Living Area by Square Feet: 2,600.00   

Average Listing Price: $618,352  

Average DOM (Days on Market): 37.87 Days 

Average Sales Price: $628,680

Average Rent for 1 Bedroom Units: $1,753

Average Rent for 2 Bedroom Units: $1,858

Average Rent for 3 Bedroom Units: $2,334

Average Rent for 4 Bedroom Units: $2,675

Want to get a FREE Sales and Rental Market Report for your specific area(s)? Just send a quick email to Contact@MandrellCo.com to receive your monthly report. In the title put the words “FREE Boston Sales Statistics” and in the body, add the up to 3 areas you’d like to receive data for. Your name and email will be added to the next monthly reporting cycle. It’s that simple to stay up to date and ahead of the curve!  

Please call us directly at 617-297-8641, for custom reports or questions above the data provided.

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Let’s talk about converting your multifamily into condos. What does it entail, who are the people you need to speak to, what are the things that you need to consider? I have a lot of clients that often come to me and say, “I have a two-family, I have a three-family, I have a four-family and there are some condos selling in my neighborhood, and I’m considering instead of selling my multifamily as a multifamily, what do you think about converting this building into condos and selling them off individually as condos? A couple things. I’m going to go over five things that you want to consider, five people that you want to speak to and get their advice before you make that final decision.

Number one, the number one person you want to speak to is your local real estate agent, a real estate agent that is versed in the multifamily, in condo sales within your market, within your neighborhood. What you’re trying to find out from that real estate agent is two things. One, “What would my multifamily building sell for if it sold as a whole, as a multifamily building?” The second number is, “If I break this into two units, or three units, what are those individual condos going to sell for?” That seems pretty elementary, pretty straight forward. Of course you want to know that. In addition to that what are the things that need to be done to these condos? What are the quality of the finishes within these condos that are required for the sale?

Again, if I’m renting … Right now if I live in unit one and I’m renting units two and units three, and I have laminate flooring and formica countertops and Home Depot cabinets, is that okay for this neighborhood? Is it a requirement for me to upgrade now to granite, to hardwood flooring, to stainless steel if I’m going to convert these into condos? What is the quality of the finishes needed for me to actually put a finished product on the market and actually have them sell?

Once you get those two comparisons. Let’s throw some numbers out there and let’s say we’re in a Cambridge market, let’s say it’s a three-family unit, and I can sell my multifamily for, let’s say, a million bucks. I’m looking at the condos in the same neighborhood and the condos are selling for let’s say six hundred apiece. This a pretty good spread. You have a million bucks as a multifamily. You have almost 1.8 million dollars in sales as a condo conversion. Most people would say, “Pretty straight forward.”

There’s a couple other considerations that you have, though. Next what I would do is I would talk to my general contractor. There’s a couple different ways … I’m going to give you the five people that you should speak to. The real estate agent I would say is always first and then you can toggle through the next four. I would probably bring in my general contractor next and say, “I’ve spoken to my real estate agent and I’m considering going the condo route. Here are the things that I want to do. Based on what my real estate agent is telling me, I need to probably gut this kitchen and we’re gonna go new flooring, new hardwood. We’re gonna bring in stainless appliances. I want new plumbing. I’m probably gonna change out a couple furnaces in the basement. I’m gonna separate these into different utilities for each unit.

Based on those things, what is that full renovation budget gonna run me?” Have your contractor come in, give them the specs, and then have them give you a proposal, a contracting proposal so you know exactly what you’re getting yourself into. The reason you want to do that is because, again, there’s an $800,000 spread between selling it as a multifamily and selling it as condos, but if you come in and your contractor says it’s gonna cost you about a half a million dollars to convert these into condos, is there still an 800. Now there’s only a $300,000 spread.

The other things you want to consider, $300,000 spread still a lot of money but, again, there are realtor fees, there are three realtor fees because you’ll be selling three condos. There are attorney fees. There would be three attorney fees because you’re selling three condos. There is also a bit of a home warranty, and you as a developer, or you selling these condos also have to make some type of guarantees. It’s not guarantees but some type of warranty to the end buyers. If the utilities break down, if the furnaces break down, those end condo buyers are going to be looking back to you. There are a lot of considerations there.

The next person I would speak to is an architect. The reason you would want to speak to an architect is because when you are going from a multifamily to a condo, in your condo docs you are going to need floor plans and the floor plans are going to lay out specifically which units own how much square footage, and then typically their condo fees are based on the square footage, and their ownership. Everything is kind of laid out in the condo docs and the architect is going to be the person that is going to come in and make sure that all the details of this building are specifically laid out, and then transfer all that to the attorney, which is the next person you would probably want to speak to. The attorney is going to talk to you a little bit about the process of drafting up condo docs, splitting your units into three separate entities, or three separate deeds.

There’s a lot of legals that go into taking one deed, one multifamily, and now dividing it up into three separate living quarters. The attorney is the next person you would want to speak to. You want to make sure that you are on board and fully understanding everything that legally needs to be done to convert these into condos, get your new condo docs, and everything else that goes along with it.

The last person you want to speak to, very important, as well, is your CPA, whoever does your taxes. You really want to make sure that they are versed in the real estate world. You want to make sure that they fully understand capital gains tax. What are my tax consequences for selling this building. Are they any different from selling it … your cost basis is going to be adjusted. Your cost basis is going to be adjusted from depending on how much money you put in, what your renovation budget is. Your renovation budget is going to affect your cost basis. You really want to ask them a lot of questions, your CPA a lot of question about the tax consequences that come with selling property and then your opportunity to sell these three or four condos, two, three condos, as well.

Again, talk to your real estate agent. Ask a lot of questions. Does it make financial sense? Talk to your attorney. What are the legal ramifications? Talk to your CPA. What are the tax ramifications? Talk to your general contractor. What is this going to cost me to get this to a market-ready condo? Last, but not least, talk to your architect about getting your floor plans ready so you can actually present them to your attorney to be included in the condo docs and, again, your realtor would probably want to see those floor plans, as well, because they would actually help the sale of the potential building, as well.

Again, Willie Mandrell, Mandrell Company. Five people that you want to speak to before you consider, or while you’re considering, changing your multifamily into a condo. If I can be of any help, please reach out. Mandrellco.com, m-a-n-d-r-e-l-l-c-o.com, or you can reach us at 617-297-8641. Thanks and have a nice day.

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4 Task You Must Complete to Maximize Your Property Sales Price


 

Hi All, I Just want to go over briefly four things that you can do when you’re selling your multi-family. Your two, your three, your four unit, your residential multi-family property. Four things that you can do to make sure that you maximize the price. That you get the most. When putting that property on the market, you walk away with the most money that you possibly can as a potential seller.

Four things that you can potentially do. Let’s start with number one. You can provide a unit vacant. Why would it be beneficial to you as a seller to provide a unit vacant when selling your multi-family? You have two potential buyers when you’re selling, let’s say a three family property. You have the owner-occupant buyer. Someone who’s going to purchase the property, move into the property, move into one of the units and rent out the other two to supplement their income. Then you have the investor. An owner-occupant buyer is almost always going to pay more for the property, their primary residence, the place that they’re going to live, than a potential investor.

Investor’s going to come in and they’re going to analyze the numbers specifically and strictly and say, “Does this property make sense from a financial standpoint and if it does or it doesn’t, I’m going to make my decision based on that.” An owner-occupant buyer is going to move in and make it their own. It’s the place that they live. There’s an emotional attachment to that place. By you providing a unit vacant, you’re essentially allowing them to move in. Without a unit vacant, essentially if all three units are occupied, only an investor can buy that property from you. Basically you’re eliminating the owner-occupant opportunity if all three units are tenant occupied and there’s not a space for an owner-occupant.

The first thing I would say is I wouldn’t go out and necessarily kick a tenant out, but if there’s a tenant moving out and you’re considering selling somewhere around that same time, you know you have a lease expiring in three or four months, it may be a good time to say let’s put the property on the market while I have this potential vacancy and move in at that time.

Number two. Make obvious repairs. If there are some things that need to be done, you are going to maximize your selling price by making sure that the property is shown in it’s best light. That seems obvious to some people but many people don’t do it prior to selling. Making sure that any appliances that are broken, light fixtures, front door, back door, the front porch, back decks, making sure that those things that are quite obvious as soon as you walk up to the building or as soon as you walk inside a unit, this is clearly not the way it should be. Making sure that those things are done prior to putting your house on the market or prior to putting that property on the market is going to maximize your sale.

Prepare for a spring or summer sale. If you are, let’s say it’s January, 2017 and you are moving into, considering selling, you have about three or four months before that spring market hits, that April, May, you really want to preparing your property for that spring marker or that summer market coming up. The reason you want to ideally sell in the spring or the summer, you have a larger pool of buyers at that particular time. Investors are going to be around all year round. But your owner-occupant buyers, if they’re renting an apartment right now and considering buying, their leases typically end sometime during the summer months. You’re going to have a much larger pool of buyers. People typically like to move during the summer when things are easier and not moving in the snow, especially in a place like New England. Preparing yourself mentally, getting your documentation ready, letting your tenants know about the sale, and making sure that you’re getting those things done during the winter months so when the spring and summer rolls around that your house or your property is prepared for that sale.

Last but not least, overpricing your property. Don’t overprice your property. Price it, I would say accordingly. Talk to your realtor, pull comparable sales, what’s going on in the neighborhood, what makes sense for this particular property compared to other sales. When you overprice the property, what you’ll end up with is potentially a stale listing. A stale listing is something that’s been sitting out there for 60, 90 days and now it’s not getting as much attention as it should be. When you do that you actually tend to get a lower sales price then you would have if you just priced the property appropriately from the beginning and sold it as quickly as possible to the best buyers during this spring or summer market.

Again, providing a unit vacant you’re going to get more money from an owner-occupant than you are from a potential investor. Making the obvious repairs. Making sure that your property is presentable and showing in the best light. Preparing for that spring or summer sale and not overpricing your property. Making sure that your property comes on the market at a reasonable and fair price compared to other similar properties that are selling on the market. If you do these four things, you’ll be sure that your sales price is maximized and you’ll get the most money and put the most money in your pocket after the property is sold.

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On December 14th, 2016 I finally closed on my first rental property! For over a year I have been educating myself as much as possible in real estate investing to one day finally take the plunge. That day finally came. A couple months ago, a property on the MLS cam back on the market. It was a 3-family in Mattapan that needed a decent amount of work to get it up to rental condition. Listed at 390k, I initially tried to get the property at 350k, a price that, once I ran numbers, felt would put me in the best position when it came time to refinance out of my purchasing loan, which I ultimately used hard money for. I submitted the offer with no contingencies, all cash and gave up the buyer’s side commission because I knew on the back end it would be worth it, but that was still not good enough and after some continued negotiation, had to settle for purchasing it at the full asking price. This would create additional challenges, but at the end of the day, if you believe in the deal, you’ll make it work.

Financing the deal was another challenge as I really wanted to find a lender that would finance a percentage of the purchase price and renovations. It was not until it was too late that I found a couple lenders where this was possible. At least for the next one, I will have this component lined up for a more streamlined process. I ultimately had to settle on using hard money, which is great for a short turnaround, but is so incredibly expensive to someone like me who hates to waste money. When it comes to hard money, if you have any other option, please use it instead.

Since the closing, it has been a mad scramble to start the renovations and make sure everyone is working constantly and as efficiently as possible. This is just another thing you will have to do when you slightly overpay for a property. Despite the challenges early on, I couldn’t be happier or more excited to have closed on my first rental property. Every day that passes makes me want to find the next deal more and more. Just always be ready for the more than likely roller coaster ride!

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South Boston’s Multi-Family Sales Are On The Rise. Check Out These Stats!

South Boston Multifamily Sales & Rental Market Report   

Are you a current or aspiring landlord in Massachusetts? No matter how many years you have in the rental business, fully understanding your local market is one the most important thing you can do to ensure your long-term success.  Receiving regular market updates will help you determine when’s it time to buy and when it’s time to sell. It will also allow you to see what your apartments rent for in comparison to your neighbors. Should you be increasing rents? Is now a good time to sell?
Here is South Boston’s multifamily sales and rental market statistics for the last 6 months.

Total Multi-Family Listings SOLD: 24

Average Living Area by Square Feet: 2,958.00

Average Listing Price: $1,308,736

Average DOM (Days on Market): 49.11 Days

Average Sales Price: $1,256,778

Average Rent for 1 Bedroom Units: $2,189

Average Rent for 2 Bedroom Units: $2,828

Average Rent for 3 Bedroom Units: $3,616

Average Rent for 4 Bedroom Units: $4,178

 
I Want To Know My Home’s Value!
 

Want to get a FREE Sales and Rental Market Report for your specific area(s)? Just send a quick email to Contact@MandrellCo.com to receive your monthly report. In the title put the words “FREE Boston Sales Statistics” and in the body, add the up to 3 areas you’d like to receive data for. Your name and email will be added to the next monthly reporting cycle. It’s that simple to stay up to date and ahead of the curve!

Please call us directly at 617-297-8641, for custom reports or questions above the data provided.

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Why Your Rental Property Is Worth $50k Less Than Your Neighbors

 I often get the question, “why is my property worth less than my neighbor’s? My neighbor’s house sold for,” in this particular situation, “$600,000. My house is listed at the same thing but I’m not getting the attention or it’s not moving as quickly as my neighbor’s home.” I am going to try answer that question really briefly. Hopefully you like my little graphic here. I am really proud of myself, able to put this together. Not that artistic so it took me a little bit. Hopefully it shows the point pretty clearly.

In this particular instance we’re talking about multi-families. We are talking about, in this particular model, two triple-decker side-by-side. Let’s assume all else is equal. They were built the same year. In the same condition. The tenant base is just as strong. All the systems are working just as effectively or efficiently as one another. All else being equal, the only thing that differs between these two properties is the rental income being produced.

In property number one in our example, you have three units. Each one of them is collecting $1500 per unit. Let’s assume they’re three bedrooms. In property number two, again, all else being equal, you have three bedrooms collecting $2000 a piece. The difference typically that we find between buildings that are almost identical selling for two different prices is the rental income that’s being produced. When buyers buy a rental property, when they buy a multi-family building, a lot of times their intention is to … and not a lot of times, most times, I would say all times, their intention is to collect as much rent as possible to help them reduce their expenses. A lot of times their mortgage qualification relies on the rental income that comes in to help them qualify for a larger purchase.

In this particular example, all else being equal, this particular model, this particular property is worth $550,000. This one is worth roughly $600,000 because of the differences in income. Often you have the seller of property number one saying, “well my house, I’m putting my house on the market and you’re telling me it’s worth $50,000 less than the house two doors down that’s almost identical to mine that sold for 600. Well I know my neighbor and I talked to my neighbor and they’re getting 600 for their property. Why is my house sitting on the market and it’s not getting the attention when we’ve listed it at the same price?”

Again, there are a lot of different factors that go into selling property. The condition, the atmosphere, maybe this person sold in a nice summer market and this is coming onto winter. The rental income is not the only factor that goes into the final price. A lot of times whether you’re talking about multi-family properties, especially the triple-deckers that we have here in New England, the rental income is a big factor and the more rental income that you have being generated by the building, typically the higher the sales price of that building compared to similar buildings.

The point we’re trying to make is more money increases value. More money equals more value. The second point is staying up with the market. Staying up with the market. Staying in touch with what’s going on in your local rental market. By that I mean, typically the reason that you find a difference between these two buildings and what they’re renting for is this person has had long-term tenants. Very good thing, but while these tenants were staying in place, this landlord never systematically went back and increased the rents. The thought process is, and again, to no fault of this person, it’s very common that this happens, is my tenants are great. They’re great people. They don’t give me any trouble. I just want to keep them in place and I want to keep them happy. I’m not going to touch the rent. As long as they’re paying the bills. It is paying the bills that I’m covered. I don’t need much out of it.

Ten years down the road, fifteen years down the road when they’ve gone … when it’s time to now sell, this person has kept up with the market, systematically said, “okay, the three bedroom apartments are now renting for $1800, now they’re renting for $1900.” As tenants move out and new tenants are being replaced, or the tenants that are in place stay there and he systematically increasing two, three percent over time to keep up with the current market rents. When it’s time for these two individuals to sell, they’re cashing out, they’re retiring, they’re moving on, they’re trading up, whatever it is, this person now, despite how nice he was to his tenants or she was to her tenants, over the years is now put themself in a tough situation compared to the person who kept up with the market.

At the end of the day, buyers are going to look at what the property is producing and say, “I’m going to make my determination of value based on,” not solely, but again, in large part on what I can get back. Even if I occupy this unit, we’re looking at it from an investor standpoint, even if we looked at it from an own occupant standpoint and we said we took away this rent, we took away this rent. I now have $4000 to help me with my mortgage. In now have $3000 over here to help me with my mortgage. I can actually not only afford to pay more according to my mortgage broker, but it makes sense for me to pay more for this stream of income. That is exactly what buyers are purchasing. A stream of income.

You as a seller should over the years understand that you want to be systematically raising your rents, systematically increasing your rents, not to be troublesome to your tenants but to make sure when that sale comes sometime in the future that you are prepared for it and that the value of your building has been maximized because the rents have been maximized.

I Want To Know My Home’s Value!

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You Should Buy An Investment Property Before Your Primary Home. Here’s Why:

VIDEO: Many would be investors start thinking about investing in real estate too late in the game. Here are a couple few why you should start thinking about real estate investing long before you buy your dream home.

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Do You Know What A Multi-family In Quincy Sells For? Check Out The #’s!

Quincy Multifamily Sales & Rental Market Report
Are you a current or aspiring landlord in Massachusetts? No matter how many years you have in the rental business, fully understanding your local market is one the most important thing you can do to ensure your long-term success. Receiving regular market updates will help you determine when’s it time to buy and when it’s time to sell. It will also allow you to see what your apartments rent for in comparison to your neighbors. Should you be increasing rents? Is now a good time to sell?

Here is Quincy’s multifamily sales and rental market statistics for the last 6 months.
Total Multi-Family Listings SOLD: 80
Average Living Area by Square Feet: 2,523.00
Average Listing Price: $642,735 (What seller asked for the property)
Average DOM (Days on Market): 45.11 Days (How long it took to sell)
Average Sales Price: $632,778 (What buyers actually paid for the home)
Average Rent for 1 Bedroom Units: $1,445
Average Rent for 2 Bedroom Units: $1,772
Average Rent for 3 Bedroom Units: $2,133
Average Rent for 4 Bedroom Units: $2,533

I Want To Know My Home’s Value!

Want to get a FREE Sales and Rental Market Report for your specific area(s)? Just send a quick email to Contact@MandrellCo.com to receive your monthly report. In the title put the words “FREE Boston Sales Statistics” and in the body, add the up to 3 areas you’d like to receive data for. Your name and email will be added to the next monthly reporting cycle. It’s that simple to stay up to date and ahead of the curve!
Please call us directly at 617-297-8641, for custom reports or questions above the data provided.

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4 Task You Must Complete Before Selling Your Boston Rental Property

Hi guys. Willie Mandrell with the Mandrell Company and today I want to talk to you about five things that you must do prior to selling your multi-family property, your 2- to 4-unit residential or larger investment property. Here are five things that you must do or consider prior to putting that property on the market.

Number one, and the most important thing, is keeping your tenants informed. Nothing can spoil a sale faster than having a tenant who was uninformed about the sale and now objects to that sale, is uncooperative in terms of letting potential buyers in or coordinating with your realtor. You really want to keep your tenants informed about the sale and educating them about the process prior, letting them know that if they’re under lease currently, their leases are going to be respected by the new buyers. If they are worried about rent increases, having that conversation with them prior.

I think the most important thing is also informing them about showing times. We’re going to be having an open house on Saturdays and Sundays from 11 to 1. The realtor is also going to be contacting you for showings in between on Tuesday nights or Wednesday nights. We’re going to try to keep it to a minimum, as not to disturb your quality of living. We don’t really want to interrupt your dinner time or special family events. Keeping that open line of communication with your tenants is going to help the sale move a lot more smoothly than having them uninformed. Making sure you keep your tenants informed, number one.

Have a pre-sale inspection. This is not an absolute necessity, but it can really help move the sale along. If you have a home inspector come in prior to actually putting the house on the market, the home inspector will tell you which appliances are not working correctly, which plugs are not grounded, does your roof look a little older, does the foundation need some type of pointing? If you have a pre-sale inspection, you can learn a lot about the property that you might not have otherwise known, and give you an opportunity to address some of these issues prior to putting the house on the market, and can make the sale go a lot more smoothly than having the reverse happen and having the buyer do the home inspection, and then them coming up with issues and the potential sale falling apart later on.

Number three. Check your smokes. If you are operating with a two- to three- or four-family residential property, the sale cannot take place unless the Boston or local municipal fire department comes in and assures that your smoke detectors are in the proper working order and the proper position within the home as well. Making sure that you’re going around and checking your smokes, that they’re ten feet from every bedroom, that if you own a three-family or above, that the hallways, the common area, the back and front hallways, plus the basement are hardwired to an electric panel. Talk to your realtor about the requirements for the smoke inspection. They are most likely going to coordinate with the municipality, the local fire department and make sure that smoke inspection happens for you. Making sure your smokes are in good working condition, because the sale of that property will not happen if they are not.

Number four, very important as well, talking to your CPA about the sale of that property. If you’re selling that property, are you taking the cash and doing something with it? Are you cashing in? Is it closer to retirement? Your CPA is going to be able to advise you on the tax consequences. The federal government wants their money. The state and local governments also have a stake in the sale of your property as well. Talking to your CPA will give you a good understanding of what’s going to happen with the cash after the sale of that property. It’s something you really want to do and really understand prior, so you can make accommodations. Maybe you want to minimize your tax liability, and talk to your CPA about a potential 1031 exchange, an exchange from one investment property to another. Talking to your CPA is very important.

Last but not least, is you want to talk to an attorney, a good attorney. If you don’t have an attorney that you work with, not everyone does, you can get an excellent real estate lawyer or attorney suggestion from your real estate agent. We, as real estate agents work with attorneys on a regular basis, and we can refer you to someone good that’s in your area that knows your real estate. The reason you want to do that is you really want to have a relationship because as you’re going along and there’s certain paperwork, the offer form, the purchase and sales, the closing itself, the attorney might want to get power of attorney to sign for you at the closing, so you don’t necessarily need to attend. There’s a lot of legal aspects of selling property that you want to talk to your real estate attorney with as well.

THere’s the five things that if you do these five things, you’ll be in very good shape to have your sale move smoothly. Keeping your tenants informed, getting a pre-sale inspection, check your smokes, talk with your CPA, and hire a lawyer. If you do those five things, you’ll be in very good shape for a smooth sale of your multi-family property.

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West Roxbury Multifamily Sales & Rental Market Data

Are you a current or aspiring landlord in Massachusetts? No matter how many years you have in the rental business, fully understanding your local market is one the most important thing you can do to ensure your long-term success.  Receiving regular market updates will help you determine when’s it time to buy and when it’s time to sell. It will also allow you to see what your apartments rent for in comparison to your neighbors. Should you be increasing rents? Is now a good time to sell?

Here are West Roxbury’s multifamily sales and rental market statistics for the last 6 months.

Total Multi-Family Listings SOLD: 9

Average Living Area by Square Feet: 2,910.00

Average Listing Price: $675,735

Average DOM (Days on Market): 68.11 Days

Average Sales Price: $677,778

Average Rent for 1 Bedroom Units: $1,577

Average Rent for 2 Bedroom Units: $2,004

Average Rent for 3 Bedroom Units: $2,356

Average Rent for 4 Bedroom Units: $2,957

I Want To Know My Home’s Value!

Want to get a FREE Sales and Rental Market Report for your specific area(s)? Just send a quick email to Contact@MandrellCo.com to receive your monthly report. In the title put the words “FREE Boston Sales Statistics” and in the body, add the up to 3 areas you’d like to receive data for. Your name and email will be added to the next monthly reporting cycle. It’s that simple to stay up to date and ahead of the curve!

Please call us directly at 617-297-8641, for custom reports or questions above the data provided.

Read more

East Boston Multifamily Sales & Rental Market Data

Are you a current or aspiring landlord in Massachusetts? No matter how many years you have in the rental business, fully understanding your local market is one the most important thing you can do to ensure your long-term success.  Receiving regular market updates will help you determine when’s it time to buy and when it’s time to sell. It will also allow you to see what your apartments rent for in comparison to your neighbors. Should you be increasing rents?

Here are East Boston’s multifamily sales and rental market statistics for the last 6 months.  

Total Multi-Family Listings SOLD: 44

Average Living Area by Square Feet: 2,462.00

Average Listing Price: $615,435

Average DOM (Days on Market): 66.98 Days

Average Sales Price: $610,560

Average Rent for 1 Bedroom Units: $1,677

Average Rent for 2 Bedroom Units: $1,943

Average Rent for 3 Bedroom Units: $2,307

Average Rent for 4 Bedroom Units: $2,875

I Want To Know My Home’s Value!

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Many people think they can’t buy a home because they don’t make enough money. I honestly believe you can accomplish almost anything you put your mind to with hard work, sacrifice and some thorough research on your options. I am a fan of real estate as a tool to building wealth because it is tried and true…tested for centuries and when executed correctly (which isn’t that hard), it can really propel your financial trajectory. 

Let’s say you are looking for your first home purchase…. what are some sacrifices you are willing to make to get into the game? I’ll tell you what I would do in this aggressive Boston market, especially if I HAD TO stay in Boston.

  1. I would research the most inexpensive yet safe and inviting neighborhoods in the city…. currently, Mattapan is wide open but picking up steam, some parts of Dorchester, and Hyde Park, however, the prices in these areas are constantly being pushed to a new limit. 
  2. See you qualify for any city programs. There are numerous options available to first time homebuyers through the city. Although you may have money saved for a down payment, if there is free money available… utilize it.
  3. I would research streets within these neighborhoods to identify where I could see myself living for 3-5 years. Select multi-family homes in decent condition. Depending on the time of year and your pre-approval amount, the property condition could be a little worse and you can utilize a rehab loan. 
  4. Screen ALL tenants to ensure they are most likely to pay rent on time monthly. If the place comes with tenants, when do their leases expire? What is their payment history? Are they paying market rent? (sidetone: I am for giving a discount to great tenants but still keep within reach of market rents; not more than $200 discount. If you are providing a larger discount, this WILL hurt your resale value.)
  5. Occupy one unit for 3-5 years which will allow the market to possibly rise and therefore increase your equity; you can start saving again for the downpayment to your second property (now at 20-25% down)
  6. Be smart…run this like a business. Set aside 3-5% of rent toward long term maintenance and repairs (water heater, furnace, plumbing, roof). Budget for incidentals, things break down in every home over time. The income generated from your 1st property will be utilized to calculate your pre-approval amount for your second property.
  7. Depending on which home you like more, decide which you will live in and which will be 100% investment property.
  8. Rinse, and reuse. The key is knowing the numbers of how much to spend. Our agents are trained to evaluate the numbers to ensure you buy at the right price point for your goals.

To connect with one of our real estate specialists, please click on the link

Below is a story of a gentleman who followed the steps above and owns 9 properties while working full time. 

Full Story

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When you are preparing to sell a MultiFamily, Here are 8 things you should do to ensure a smooth transition and to limit surprises. 

  1. Hire a Certified Professional Accountant (CPA) who is well versed in real estate. You want to know what your tax consequences are when you sell. There are capital gains taxes associated and you want to know next steps before you begin the process.
  2. Talk to a Realtor who is familiar with your area and multi-family homes. It is not just about listing your home, they need to understand the intricacies of a multi-family and how rent, condition, location etc affects the value. Is it a buyer’s market or a seller’s market?
  3. Does it make sense to sell as condos? Boston is experiencing a real estate boom and oftentimes in some neighborhoods, it is more profitable to divide the property and sell as condos as opposed to selling as a multi-family.
  4. Informing tenants of the sale. You want to inform them as early as possible. You want to be respectful of your relationship because a disgruntled tenant can hinder the sale of your property. You want their cooperation in coordinating showings, assist them in providing information for relocating.
  5. Gather property Financials. Buyers want to know the additional cost associated with the property so they know if the numbers make sense
  6. Gather tenant lease information. The buyer will want to see the lease agreements. When do leases expire? Are they market rent rates or below market rents?
  7. Fix any major and minor repairs in home. You want building in best shape possible as first impressions are lasting. Also, home inspections are a time to renegotiate the price. If you do not want to renegotiate the price, repair as much as you can that makes sense (discuss with realtor) so that you get the strongest offers.
  8. Connect with a real estate attorney. You want to ensure your best interests are protected.

For more information and helpful tips, please follow our blog posts or connect with us on  facebook or email at contact@mandrellco.com

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The majority of Bostonians hate writing a check to their landlord every month, particularly if you live in Roxbury, Jamaica Plain, and Lower Mills areas. Sometimes you are cursed with noisy neighbors, or a super strict landlord who is looking for any reason to push you out so he can get the next highest paying tenant.

If any of the above applies to you, you probably want to buy a home…yesterday! Wanting to buy a home and being ready to do so are two different things. Are you financially ready for the monthly mortgage payment and budgeting for repairs?

Here are five signs that you’re not ready to buy a house just yet. But don’t fret; even if you are struggling with these financial issues, you can still become a homeowner. You’ll just need a bit of patience and improved financial skills.

Buying a home is expensive. You’ll need money for a down payment. If you are buying a home with an FHA loan, you’ll need a down payment of 3.5% of your home’s final purchase price, depending on your credit score. For a $300,000 home, that comes out to a down payment of $10,500. Thanks to Mass Housing, we have a 3% down payment program, but that still equates to $9,000. These numbers do not include closing costs, moving costs and other miscellaneous costs associated with moving into a new home. 

Closing costs are the fees that mortgage lenders, title insurers, attorneys and others charge you to originate your mortgage loan. We generally tell people plan for an additional 2% to cover these costs which equals $6,000.

It’s true that you can get help with some of these costs. You can use gift money from relatives, for example, to pay for all or part of your down payment. You might be able to convince a home’s seller to pay for all or part of the closing costs. In our current market, sellers are not inclined to do closing cost assistance unless you plan to purchase well above asking. 

What to Do

It’s best to start searching for a home only after you’ve saved enough money to cover a down payment and your estimated closing costs. Another option would be to look into programs available by your municipality that encourages home ownership by providing financial assistance. There are also some non-profits and other organizations that allow you to purchase with 0% or a rate lower than industry standard. (NACA.com)

Sign 2: Your Credit Score Is Bad

Your credit score is a key number when you’re applying for a mortgage. The best interest rates go to individuals with the best credit scores (above 740). The lower your score, the higher your interest rate and subsequently, the higher your monthly mortgage payment. You can purchase a home with a 580 credit score according to FHA guidelines but there are only a few lenders willing to accept a score this low. 

What to Do

First, order at least one of your three credit reports from AnnualCreditReport.com. You are entitled to one free copy of each of your three credit reports — maintained by the national credit bureaus of Experian, Equifax, and TransUnion — once every year. Once you get your report, read it carefully. It will list how much you owe on your credit cards and how much you owe on student loans and car loans. It will also list whether you have any late or missed payments during the last seven years. Those late or missed payments will send your credit score tumbling.

Next, order your FICO credit score. You can do this from the credit bureaus, too, but you’ll have to pay about $15 to do so. If your score is low, and there are negative marks on your credit report, it’s time to start a new history of paying all your bills on time. You also need to pay down as much of your credit card debt as possible. Both of these actions will steadily increase your credit score, though it could take months or even more than a year before your score recovers enough to make you a good candidate for a mortgage loan.

Sign 3: You Have Mount Everest of Credit Card Debt

Your debt-to-income ratio is another key number when it comes to buying a home. Lenders want your total monthly debts, including your estimated new mortgage payment, to equal no more than 43% of your gross monthly income. If your debt-to-income ratio is too high, you’ll struggle to earn approval for a mortgage. Some lenders will go as high as 50% due to the high cost of rent but generally, they want to see that you are not up to your eyeballs in debt.  

What to Do

I would say pay off your credit card debt but if you could have, you probably would have by now. I will STRONGLY recommend you always make more than your minimum monthly required payment. 

Sign 4: You Routinely Miss Your Monthly Payments

Making late payments, or missing payments completely, is a sure sign that you’re not ready for the financial responsibility of owning a home.

If you miss a mortgage payment by more than 30 days, your credit score will fall by 100 points or more. If you miss enough, you could lose your home to foreclosure. This is not like a landlord where you get warnings before it affects your credit… this is immediate. 

What to Do

Learn better financial habits before you apply for a mortgage. Set up reminders on your phone or computer alerting you when bills are due or use my favorite method… automatic payment. You could set aside one day each month dedicated to paying bills if you prefer the old fashioned paper method. Don’t apply for a mortgage until you’ve broken the habit of regularly missing your monthly payment due dates. 

Sign 5: You Don’t Have a Stable Job

You’ll need a steady, reliable stream of income if you use a mortgage to finance the purchase of a home. If you’re worried that you’ll lose your job, or your income is sporadic with no real pattern, you should probably NOT purchase a home. Generally, you need 2 years of full time work history. If you are self employed, you will need other documentation to help qualify you for a loan. 

What to Do

Find a job that is reliable and that pays you a stable income each month. Don’t take the risk that everything will work out. You don’t want missed mortgage payments on your credit reports. And if your job is unstable? You’ll greatly increase the risk of these red marks. If you are self employed or you operate on seasons… then you should think of yourself as a chipmunk… get good at storing away for the slow months. 

I hope this advice was helpful. We strive for our clients to be responsible home owners and want to ensure you will not be putting your home up for sale due to foreclosure. We want to help you BUILD WEALTH THROUGH REAL ESTATE!

 

For More information, please contact one of our agent specialists for your area or connect with us on… 

Dorchester Real Estate Agent

 

 

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