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Updated almost 2 years ago,

User Stats

12
Posts
6
Votes
Ashlie Perry
  • Salem, MA
6
Votes |
12
Posts

It's Complicated: Mass Multi Family with road blocks to selling

Ashlie Perry
  • Salem, MA
Posted

Hi all,

I'll start off by saying "It's complicated". I'm investor and agent, so I am doing the listings, etc. This is a 2 family: 1 bedroom/1 b and a 5 bedroom /2b unit.  To make this more streamlined, I'll do dates.

2020-2022: Process of evicting an inherited tenant that had too many people in the unit, kept the unit in horrible shape, racked up multiple trash fines for putting recycling in trash (up to $700 that I was responsible for), the list goes on and on. Covid moritorium and her section 8 status worked in her favor to delay the process for 2 years. Note: She is in a 5 bed room with a 2b voucher from the City of Lynn.

July 2022: Paid lawyer for cash for keys agreement. She was to be out by Oct 31st with up to 6k per agreement. 

October: Mid October I paid for her 1st moth rent to just get her out as she was about to receive $0 from me but not be out of the house.

November: She leaves the unit but leaves all her trash and unwanted furniture. I pay close to $3k to have her items removed

December 2022: List house on the market for 500k. Purchased for 310k in 2019, so this was being ambitious. 

Last week of Jan 2023: Offer of 440k with strong financing and 20% down. We begin preparing for closing. I decide on DST to avoid taxes.

Feb 9th: I have smoke inspection schedule. I call and ask for requirements of the unit. I replace ALL detectors and add carbon combo in the one common area. The day of the inspection, the Fire FD comes to the 1 bedroom unit and 1) measure the bedroom windows and say they are not to building code 2) express that the egress form the bedroom door needs to be changed as it's not to code. Both require permits. I notify prospective buyers that this is the issue and that fire PD won't give smoke cert unless the changes are made OR that they take a waiver knowing that the changes need to be made. The starirs would need to be sprial due to space restraints, so $7500 and window enlargement around $1500-2k

around Fed 15th: I call Mass State Smoke Inspection office and ask if Fire PD should be enforcing building codes as part of smoke cert. They said they were not and would talk to them. A week later Mass Smoke says that Lynn PD has been informed to ONLY deal with the smoke cert.

around Feb22nd: Lynn PD calls to inform me that they question if the house is even a legal 2 family and that they NEED to bring in the building inspector to see if I can sell the house they way I advertised. I bought the house in 2019 as a legal two family, the accessor's office has it listed as a legal 2 family, Patriot Properties has it as a 2 family, etc.  Of course the house has 2 gas lines, t meters, etc. as it's a two family but for over a week and a half they say the legal determination is tied up with the "higher ups".

March 1st (ish):  I call the Mayor's office to express frustration and concerns with the way the process is handled. 

March 2nd: Mayor's office pushes the legal determination that the house is a 2 family, as both the building inspector and Fire PD both later acknowledged that they knew. The same day I reschedule for Fire PD to come and determine what is needed to pass inspection. We aim to meet the next day at 2:30pm at the property. The Chief of Fire PD inspection/prevention was suppose to meet me. He stood me up! I called his office at 3pm, inquiring about him. I was told "he's at a meeting at city hall, so I know he won't be able to meet you.

The next two weeks: Fire PD refuses to answer an of my calls, building inspector now says that the initial egress concern is not the ONLY concern. Now, in addition to the balcony/stairs bein updated ($7500) there needs to be a second egress added because the 2nd egress to a unit can't be from a bedroom. Another quote from a contractor has this coming in at 18k. I tried to find this code in the Mass codes. I called the state, anonymously, to get access to the building codes. Couldn't find it in 780 chapters 3 (egress) nor chapter 7 (fire prevention). I called building codes and informed them of this and they said they use the IBC, International Building Codes. This is commercial codes but has a small residential section that they can apply to their codes. I inquired why they aren't using Mass codes and he didn't respond to that question but that he could use the IBC.

My options are 1) to convert the 1bedroom unit to a studio and relist it on the market (still paying 7500 to change the stairs) hoping to get a higher offer 2) Pay to have 3 doors (front, out of the bedroom and the 18k egress) 3) pay the sellers 10k in "loss of rent", cost to make the house a studio and the 7500 for stairs.

What would you all do? Of course, when all is said and done... I'm going back to handle the City of Lynn. There are too many illegal/weird things going on there.

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