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All Forum Posts by: Adam Anderson

Adam Anderson has started 2 posts and replied 4 times.

What has your experience been like? You can get some really great profit margins, but understandably there is headache... well, for a newbie, what kind of headaches are we talking about? Isn't Section 8 guaranteed rent?

I'm looking at Codman Sq/Ashmont parts of Dorchester and Bellingham Sq. in Chelsea.

Advice?

Hi Ned,

Thank you for your response. I will be owner-occupying. (I'm a young single guy, and don't need a 3 bedroom apt to myself, so I already have two interested roommates)

In this way property management will be on me. However, again managing my father's 4plex has been.... very, very easy compared to what I hear on these forums. Some make it sound like a full time job, I would say I don't spend more than 2-3 hours a week managing his property, even in the harsh winters of Boston.

No LLC costs, etc. This will be a residential property. Vacancy rates are rather low in Boston, from what I've seen, with the ridiculously high demand.

The building isn't new by any means, but it is in great shape and appears pretty turnkey. Renovated, it was bought for $150k cheaper a couple of years ago, so I presume it's a flip.

Not a great part of Dorchester, but I guess that comes with the relative affordability of it...

That makes more sense. Thank you!

So my calculation:

$6k in rent, minus $4k (mortgage, tax, insurance), minus $1k (water and various costs) = $1k profit per month give or take

isn't in dreamland?

Hi everybody,

Newbie here, looking to buy my first property. I'm not totally green to the life of a landlord, as I have managed my dad's 4plex property since I was a teenager. However, he bought in the 90s, in a nice part of Jamaica Plain, so the high rent, no crime, no mortgage payment combination will surely be impossible for me.

I have been looking into 3plexes in Dorchester. There are some properties there in the $700-800k range, mostly turnkey, with about $6k in rent a month. I will be going in at 20%, so looking at $4k a month in mortgage, taxes, and insurance. Initially, I thought of the $2k "profit" a month being cut down to $1k a month with water bills and various repairs here and there. Yet I keep hearing about this 50% rule that half the gross rent will be put towards expenses... is this rule really applicable to Boston? $3k in non-mortgage expenses sounds ridiculous... that's $36k a year. Unless my tenants are burning down their apartments annually, I can't imagine that figure being accurate.

Our expenses in the JP 4plex honestly don't exceed $700 a month, if that.

Does this rule maybe only apply to areas where rent isn't as high as Boston?

Am I naive to think $6k in rent, minus $4k (mortgage, tax, insurance), minus $1k (water and various costs) = $1k profit per month?

Thank you! Looking forward to learning a lot from you all.