Boston Zoning Help/Adding units to a Multi Family Property

[Ash William]

Hello, 

I have been kicking around the idea of using a FHA 203k loan to purchase a multi family property that would be able to add an additional unit or two and had a few questions. 1. Are there any resources available to help determine if a property would be allowed to add units as well as going through the process of getting all necessary zoning permits? I understand that type of due diligence ultimately falls on the buyer but curious if there is anything that would allow finding these types of properties to be streamlined a bit. 2. Assuming I were to find a property that checks all boxes mentioned above, am I biting off way more than I can chew with this type of project? For what its worth, I would be able to visit the property every day if necessary but have very little experience managing rehabs. I feel like one positive of a 203k loan is that it forces you to follow a strict process which may be beneficial for someone with less experience.

Appreciate the feedback here!

[Nick Riccio]

@Ash William I'm never one to "rain on someone's parade", but I think it would be prudent to start smaller. Boston zoning is incredibly challenging, and can be quite expensive to do the diligence needed. 

I think you're on the right path with the 203K - I've used FHA several times in Boston & help clients with 203K's and it's a terrific tool. One thing to be aware of (in & around Boston), is the FHA loan limits typically don't allow for the 203K to work. Meaning, the purchase price of most multi families in Boston are up around the FHA maximum loan limit, so there often isn't a lot of room to add construction budget. Something to consider.

On another note, Boston does have an ADU program. Basically they allow for owner-occupants to add units to their existing structure without needing to meet zoning requirements. Example: 2 family that you could finish the basement into a third unit. Through the ADU program, you would not be required to meet zoning requirements.