Market Conditions in 04401>Question Details

Tory Dearborn, Other/Just Looking in Bangor, ME

Are multifamily homes a good investment in the Bangor area?

Asked by Tory Dearborn, Bangor, ME Wed Feb 24, 2010

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Tony you have had some great answers here already. One thing they have not touched on is Demand. Demand for rentals is on the rise. As people are displaced to to increasing foreclosures and short sales, not just here in Bangor, but around the country they are left with one choice and that is to rent. People are forced to go where the jobs are and Bangor's job market is more solid than most. There are many other factors to consider before becoming a landlord. Feel free to contact me and I can help you get the information you need to make the right decision for you!
0 votes Thank Flag Link Wed Mar 3, 2010
I have two clients in the Bangor area and they seem to do OK... of course I am not privy to their financials. One client I do 2-3 inspections a year on purchases... single family flips and multifamily investments as well.

If interested i could perhaps put you in touch with them to share some insight!

0 votes Thank Flag Link Wed Feb 24, 2010
Hi Tory,

The Answer is yes! There is always a need for rentals in our area due to how many Universities we have. I would recommend you hire a Full-time Real Estate Broker as some of the best rentals are not publicly listed. Not all sellers want to list and have everyone know that their building is For Sale. The seller works closely with a broker and gives them what is called a 'pocket listing" ie. not a formal listing but, if you have someone who is serious and looking, I am always willing to sell.

Let me know if I can help you further.

Tess Keeran
RE/MAX Advantage
108 State St.
Bangor ME
0 votes Thank Flag Link Wed Feb 24, 2010
Hi Tory,
That depends on what you are expecting as a return. If it is simply monthly cash flow then your best best would be an established unit with 3-6 units and good rental history. Unfortunately, units with good cash flow are generally not for sale. But there are also the benefits of tax write offs, depreciation, building equity while paying down the principal... and the list goes own. A true investor looks at the toal picture not just the monthly income. Are you looking for owner occupied or strictly investment? How will you finance it? Have you been a landloard before? Many lenders will take this into consideration when reviewing a loan application. There are specific formulas which are helpful determining whether a particular property is a good investment or not. If you are just getting into this market, I recommend finding a good agent with history of dealing with investment properties, sit down and establish your goals. Then go on from there.
Good luck!
Linda Gardiner
Town & Country REALTORS
0 votes Thank Flag Link Wed Feb 24, 2010
They can be. Look for a building with a good rental history and compare the expenses to the income. An owner occupied multi-unit can be a good way to start out. Like any business, a lot will depend on your management skills.
I'd be happy to help you get started by sending you some listings of multis currently on the market so you can start comparing.
Diana Downs
ERA Dawson Bradford
417 Main St., Bangor, ME 04401
C - 207-735-6988 F - 207-941-9866
0 votes Thank Flag Link Wed Feb 24, 2010
They can be. Are you planning to build multi-units? I noticed you had asked a previous question about financing land in the Bangor area. You may be able to find special financing to build new units. Purchasing existing multi's- 5 units & over will require a commercial loan. If you plan to live on the premises- you should consider at least a 3-unit.
0 votes Thank Flag Link Wed Feb 24, 2010
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