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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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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.

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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!

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.

http://www.EastBostonHomeValues.com

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I have 2 friends who both recently purchased their first homes in the Boston area. While I’m happy for them both, my friends took two completely different approaches to home ownership, which resulted in two wildly different financial scenarios. Below are the details

Larry (friend #1) makes about $40,000 annually, has very little consumer debt and a fair credit score (650). Larry was pre-approved by his mortgage broker for a $300,000 homes purchase based on his financials. As of 2016, $300,000 in Boston will buy you an entry level single family in the city which is what Larry decided to purchase. His mortgage, taxes, insurance, and water bills cost Larry about $2,077.30 after a 5% down payment and paying his own closing cost. His monthly cost of detailed below.

Larry’s Payment Information
Principal & Interest: $1,360.63
PMI: $250.00
Water/ Sewer: $50.00
Taxes: $250.00
Insurance: $166.67
Total Monthly Payment: $2,077.30

Pros & Cons:

  • Larry has the joys of single family living and doesn’t have the responsibilities that come with tenants 
  • If anything happens to Larry financially, he is on his own when it come to covering his monthly obligations
  • Larry was able to purchase this home with 5% or just 15,000 out of pocket.

John (friend #2) makes nearly the same annual salary of $40,000. John also has very little consumer debt and a 650 credit score. Instead of accepting the same $300k pre-approval Larry did, John decide to talk to his mortgage broker about purchasing a multifamily property, more specifically a Boston triple decker. John planned to live on one floor and rent out the other 2 units to help cover his monthly cost.

John’s mortgage broker did some research and found that apartments in John’s area were renting for $1650 per month on average. If John occupied one unit and collected rents from the other two, he would be putting an additional (after his own salary) $3700 per month in his pocket. In this scenario, John’s mortgage broker re-evaluated John’s financials and determined that if John was to purchase a triplex, he could afford to spend up to $550,000. Simply put, the additional rental income allowed John to purchase a larger home. After John collected rental income from his tenants each month, John was left with a balance of $4.17 that he need to cover. John was essentially living for free. ($1650 per month x 2 rental units = $3700 – Monthly Cost of $3,704.17 = $4.17 balance)

John’s Payment Information
Principal & Interest: $2,554.17
PMI: $400.00
Water & Sewer: $150.00
Taxes: $350.00
Insurance: $250.00
Total Monthly Payment: $3,704.17

Pros & Cons:

  • John was able to purchase this property with 5% (27,5000) out of pocket.
  • John has a very small obligation every month  (4.17$) to cover but what if one of the tenants moves out? John will need to save money to cover the cost of vacancy. He will also need to cover the cost of repairs to the building/ tenant units. 
  • John doesn’t have the privacy single family home provides.
  • John will eventually raise his tenants rents. If rents go up, John’s income from the property goes up as well. Now he’s putting money in his pocket every month after his expenses…”cash flowing”
  • If John ever moves out of his apartment he could also rent it for market value. In the near future he could be putting $2000 into his pocket every month.
  • John does need to create a reserve account for the raining days that come as a landlord.

 

Would you like to speak to one of our mortgage brokers and find out what you qualify for? Are you interested in purchasing a multifamily home and need more information? Give us a shout at 617-297-8641 or email us at Contact@MandrellCo.com

 

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10 Must Do’s Before Selling Your Boston Triple Decker

Are you preparing to sell your multifamily property (2+ units) and want to make sure you earn top dollar from the market? The best way to maximize the resale of rental apartments is to get buyers to fall in love with the building. Here’s a list of 10 things you can do to ensure buyers open up their wallets.

1. Inform your tenants of the sale:
A multifamily seller’s tenants can often make or break a transaction. If the tenants are non responsive to showing requests or provide damaging information to prospective buyers it could instantly mean a lower sales price or possibly no sale at all. The best thing to do to avoid trouble is to have a conversation with your tenants about your intention to sell. You’ll need to inform them that potential buyers are going to be viewing their living space and they will need to make themselves (or their unit) available during certain scheduled times. Let them know you’ll be respectful of their living quarters but will need access for potential buyers soon. If there are any complaints that have yet to be resolved, now would be the best time to handle these issues.

2. Prepare the property financials:
When you’re selling a multifamily home you need to consider your potential buyers and their wants/needs. Many multifamily homes are purchased for investments purposes. If you’re perfect buyer is an investor, they’re going to want information on the buildings operating expenses. You should gather this information and be prepared to show it to potential buyers during the selling process. Operating expenses include: Taxes, Insurance, Water/Sewer, Common Area Cost (Heating & Electric), Utilities, Trash Removal, General Maintenance, and anything else needed to keep the building running smoothly. They are costs your potential buyer will need to consider during the purchase.

3. Provide details on your systems:
When were the heating systems installed? When was the roof installed? What is the age of the hot water tank(s)? How old are the windows? Any electrical or plumbing upgrades recently completed. Have your real estate agent provide you with a check list of home systems so you can make sure you’re fully prepared to answer questions the buyer or investor has.

4. Get a home inspection done:
Home inspections are just for buyers. As a seller you can also have a home inspection done for the property prior to placing it for sale. This proactive approach will cost you a few extra bucks, but it will also allow you to see exactly what your potential buyers are going to see. The more issues you can resolve prior to the buyers home inspection, the less you’ll have to negotiate and the more the buyer will pay.

5. Bring your rents to market value:
If market rents for a two bedroom apartment in your area are $1500 a month (but you’re a nice lady) and you’re charging your tenants $1100 dollars per month, you’re hurting the value of your property. Charging tenants less than market value is what many landlords do to keep good tenants in place. They think to themselves that they don’t want to upset things and force the tenants to move out. While there is nothing wrong with this strategy, landlords are not helping the resale value of the building. For example, if you have two triple deckers side by side with one landlord collecting $1100 ($3300) per month while the other landlord is collecting $1500 ($4500) per month, all else being equal, the multifamily with the hire rental income is going to have a higher value. Put yourself in the buyer’s shoes. If I have the option to purchase two identical income producing homes, why would I pay the same price for a building producing less income than its counterpart? I wouldn’t. If you’re timeline allows, it may make sense to increase the rents a few months prior to selling your property to show the increased income. Consult your realtor about this strategy and make sure to properly assess the current rental market.

6. Assemble your real estate team:
Do you have a real estate agent? Does that agent understand the local market, the investment business and what potential investors are searching for? Do you have a good real estate attorney to represent you during the transaction? Your attorney will help work out the details in the purchase & sales contract which you and the buyer will sign. Have you spoken to your CPA or tax preparer? Do you fully understand the (if any) tax consequences for selling this investment property?

7. Have leases and tenant documents available:
Have your tenant leases and security deposit information available to show potential investors. Once both parties are in agreement on a selling price, and an offer has been accepted, your buyer will want to see leases and ask about deposits you have in place. This is important to them as these will be the documents they will need to honor after the property is in their name.

8. Make necessary repairs to the property:
If you’ve done a pre-sale property inspection, you now have a good list of what the property will need to avoid any buyer concerns. Now is the time to take care of these issues. Ask your realtor for local contractors and handy men and have them take care of what’s necessary. Making these proactive repairs will help deter the buyer from requesting a discount and help you achieve top dollar during the sale.

9. Have a Realtor provide the home’s value range:
Your home’s value isn’t determined by a real estate agent, the bank or an appraiser. All of these people (or entities) can provide you with opinions of value based on their market knowledge, but the true value of your property is always going to be determined by the open market (buyers). Your building is only worth as much as someone in the market is willing to pay for it. When buyers determine what to pay for a particular property they review what other properties have sold in the neighborhood similar to the one they’re considering. They do what’s called pulling “comps”. They “comp” or compare your house to other sold homes in the area. When determining a value, your real estate agent will do the same and provide you with this information. They will sit with you and go over other recent sales in the neighborhood and determine where your property lines up.

10. Brush up on the current real estate market:
Are you operating in a buyer’s or seller’s market? What’s happening within the local economy and is now a good time to sell? Your real estate agent will be able to help you answer both of these questions. It’s important to know if the current market benefits you as a seller or does it work in the favor of buyers. A sellers market is anytime inventory (amount of homes on the market) is really low, but there are a larger number of buyers looking to make a purchase. This is the best time for you to sell. In a perfect world you’ll have multiple buyers bidding for your property and driving the price upward. A buyers market is a condition when there are more homes available than willing and able buyers.
The local economy should also play a role in your sales decision. Is there development going on in the area? Are interest rates good and loans readily available for buyers? If money is tight and buyers aren’t able to find lending, you’ll have a tough time finding a suitable taker for your property.

Contact me directly to learn more about how The Mandrell Company can help you sell your multi-family for the most money in a reasonable time frame.

Willie@Mandrellco.com or 617-755-4938.

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Price to Sell and Still Make a Profit

Many people think selling a house is a piece of cake. You list for the price you want and the buyers come running, or scrambling to have a bidding war on your property. Truth is, bidding wars occur on homes that are priced accurately based on the current market. The asking price you set for your home significantly affects how much you will profit and how long your home will sit on the market. Our agents understand their markets and what’s selling- or not selling. This knowledge will be invaluable in helping you determine the price. The objective is to find a price that is competitive to receive immediate offers yet wont leave money on the table.

Here are a couple points to consider:

Time

Time is not on your side when it comes to real estate. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. The reason being, everyone rushes to see a new house on the market and if the market does not warrant your price, then they keep looking for the next house on the market. Because all these buyers passed on your home, now you are forced to decrease your price to draw in a new crowd at a lower price point or attract the previous interests with the decreased price. Once potential buyers see you decrease your price, their next thought is… how low will you go? On comes the low ball offers. Therefore, if your goal is to make money, think about a price that will encourage buyer activity.
Value vs. Cost.

Pricing your home to sell in a timely fashion requires some objectivity. It’s important that you not confuse value with cost – in other words, how much you value your home versus what buyers are willing to pay for it. Don’t place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants an in-ground pool or hand crafted railings. While there are people who really want these features and are willing to pay for it, you have now drastically reduced your buyers pool to those specific buyers. Quick real estate sales cater to the general buyer than a specific clientele because more people want what you have to offer. Dorchester is not ideal for a pool, but creating additional parking is a definite win, considering New England Winters.
Keep it simple.

Because time is of the essence, make it easy for the buyers. Remain flexible on when we can schedule showings.  Let’s Schedule a meeting, there are a lot of alternative options that can get you the most money for your home and accommodate your needs. It takes open communication, an open mind, flexibility and patience.
For more tips on selling your home and staging/decorating ideas, Be sure to connect with one of our agents in your area

 

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Are you interested in buying or selling property in Roxbury? Before you do, making sure you fully understand your local market is very important. Receiving regular market updates will also allow you to see where similar properties are selling as well as what landlords are charging for their rentals.

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

Total Multifamily Listings SOLD: 13

Average Living Area by Square Feet: 2,976

Average Listing Price: $513,054

Average DOM (Days on Market): 31.92

Average Sales Price: $494,233

Average Rent for 1 Bedroom Units: $1,334

Average Rent for 2 Bedroom Units: $1,727

Average Rent for 3 Bedroom Units: $2,304

Average Rent for 4 Bedroom Units: $3,000

Want to get a FREE Sales and Rental Market Report for your specific area(s)? Just send a quick email (or complete the contact form below) 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 where you’d like to receive data. 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 crowd!

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

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We have a unique opportunity that’s just come into our office. We have a client looking to sell a 4000 square foot lot in Dorchester with approved plans to build a 3 family home. The building would consist of 3 bedroom, 2 bathroom units and would include one parking spot for each unit. The seller is looking for $195,000 or B/O. The Dorchester multifamily market is still red hot and this deal is not expected to last long. Please email us at Contact@MandrellCo.com for more information and/ or a copy of the city approved plans.

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Multifamily_Home_Buying_BookWhen it comes to buying a home, the ability and willingness to negotiate is a must. In general, sellers ask for more than they are actually willing to accept and buyers initially offer less than they are actually willing to pay. As the buyer, you will have the best chance at a successful negotiation if you research the price of other comparable homes in the area before making your offer. The best way to determine what you should pay is by considering what other buyers in the area have paid for similar properties. Your Realtor will be able to provide you with a comparable market analysis for the prospective property, which will assist you in finding these recent sales figures.

Lastly, be realistic when you’re ready to put in your offer to buy. Nothing will hurt your chances of future negotiations more than insulting the seller with a low-ball offer. Remember that the trick to landing yourself the best deal is to find the balance between your high-water mark and the seller’s low-water mark. You want to work with the seller to find a point where both parties come out feeling good about the transaction. You should also remember that not every offer is accepted, so don’t be disheartened if your first offer isn’t a winner. In most cases, the seller will make a counteroffer for your consideration and negotiations can continue from there.

Want all 25 buying tips? Complete the form below and the complete book will be emailed to you immediately!

 

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Attention contractors and investors. Great rehab opportunity. Legal 3 family being used as single. 2 studio lofts and one 3 bedroom apartment. Exposed brick & beautiful wood work throughout. One working furnace. Bus stop out front. Great buy and hold investment property or good for owner occupant. Roof replaced last year. May not qualify for conventional financing. Seller motivated. Bring offers!

Call us for more information! 617-297-8641

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