Multi Family market crash! 50% loss!

Some of you may disturbed by the the following fact: In 2006, between the peak selling season of April-October, the average selling price for a 3 family home in Worcester was $304,540. 95 units were sold.

In 2008, during the peak selling period of April-October, the average selling price for a 3 family home in Worcester was $142,402. 121 units were sold.

It is interesting to note that the volume of sales were up 20%. This research was compiled by using MLS data. The question is ....why are the values so low? The answer is simple. Most, if not all of the 3 family homes that were sold were under financial duress. The sales were either short sales or REO's (Real Estate Owned by the bank).

Savvy investors are buying a lot of Real Estate in Worcester! Let's do the math. Let's pretend each unit is paying $650 a month in rent. $1,950 comes in every month and the mortgage payment is about $1,200 a month! This scenario provides positive cash flow of $750 a month. That's plenty of money to address any repairs!

If you or someone you know is interested in learning more about how to create a Real Estate Pension! Call Adam Pasquale for a Real Estate review!