All Forum Posts by: Dan K.

For a new build I thought radiant heating would be a no-brainer, but after doing research it's really not a worthwhile investment unless it's expected.

To appreciate radiant floors your really need to be a home owner and "get it." 

My Point of View: When doing your analysis, you'll find the less affluent cities and towns will give you better cash flow. However, after taking into account turnover, legal fees, vacancy, etc., you may favor less cash flow in favor of spending less money on chasing rents.

No problem @Hovig C.. A nearby parking lot is a plus. Depending on where you're looking, there could be a multi-year waiting list for the parking lot. Parking in Boston is usually not that bad if you have a resident sticker. The tricky thing is that many grad students and others have cars registered out of state or out of Boston and aren't eligible for a resident sticker.

If there is a nearby lot, you should find out pricing and availability. In addition, in town many garages offer discounted rates for people who only park at night and on the weekends (reverse commute hours).

Hi @Hovig C., welcome to BP.

Parking and dumpsters is a major concern in Boston. The costs of of reserving spots and hauling debris can quickly add up. 

Of course the tenant pool is excellent -- A++. That is the easy part.

Contractors and subs will charge a premium because everything in town is annoying (permitting, disposal, inspections, etc.).

I don't know enough about the property to give an opinion, but sprinklers are often required in 4 or more unit builds -- I am dealing with adding sprinklers now and it is not fun. 

Hi @Michael Boyle, welcome to BP.

To do some title research, go to the Registry of Deeds made for Middlesex County -- http://www.masslandrecords.com/middlesexsouth/

I am doing new construction on my property and I think you're a bit low with your $162 per square foot estimate.

As for you cashflow calculation, I highly doubt you're going to be able to find a bank willing to do a cash out refinance with zero money down. Every bank I know of will give you an LTV of around 70-80%.

Assuming the property is worth $667,000, and you pull out 80% of the equity ($533,600) at a 5% interest rate, you'll be looking at a monthly payment of $2,864 a month. Of course you'll then have insurance, taxes, water, etc.

So in essence, in your scenario you'd have $16,400 of your own cash left in the property. Of course you'd also have a brand new rental property.

@Rema Rao

Congratulations on closing the deal. As others have said, check condo rules and Boston regs. Then find insurance that will allow an Airbnb. STR's are a business with a variety of startup costs — deferred rent as you build up reviews, furniture, frequent cleaning, increased insurance, stocking the kitchen with everything renters will need.

There are a couple of companies that are willing to manage STR's in Boston — giving you either a flat rent per month or the proceeds minus a management fee. Perhaps you want to reach out to discuss with them.

Personally I would never, ever do an illegal STR. If somebody trips and falls in your unit, neighbors complain, the city finds out what you're doing, etc., you will potentially lose your entire life savings including the property.

Also, your condo neighbors will immediately know you are running a STR. In fact, if there is no rule against STRs, but they don't like it, they could change the rules to disallow them.

Hi -- The answer to your first question is easy --

You need a permit for everything. If you change a faucet you need a permit. For siding, if you are replacing a small portion of siding you are okay, but if you re-do the siding, you need a permit. If you are going to GC this yourself, my suggestion would be to start a dialog with the building inspector. Have a plan on what you're going to do and be honest. You absolutely don't want to be caught "pulling a fast one," on inspectors.

For a single family you can pull permits on everything but a few things. For electric / plumbing / gas you may need to use somebody who is licensed. 

There is no hard and fast rule about bringing things up to code. If you redo steps or a porch, you're going to need to address railing height and distance between balusters. If you're doing a lot of electrical work, you might need to redo your panel and put in grounding rods in the yard. In general, if you don't start working on an area and opening it up, the inspectors don't know what's there and technically neither do you -- so there isn't a need to update. 

You should get a mass saves inspection ASAP. You might be able to get some significant savings on HVAC.

Keep in mind, if this is your first flip, you want to do everything the right way. Years from now you want the homeowners saying you guys did an awesome job rather than putting lipstick on a pig.

@Alan Miegel in Cambridge I was just given a quote the other day of $15 a square foot for parking pavers. Price included demo of concrete.

Hi @Alan Miegel

For the basement you’re going to want to do some zoning research to see what FAR is allowed and how many dwelling units you can have. You also need to consider the fact that you’ll need to points if egress. In recent years the city has become tougher when it comes to finishing basements.

As for the work, you can save some money if you sub it out yourself. That being said, because it’s a multi, you’re not going to be able to pull your own permits because it is a multi.

Hi @Samuel Brand,

I'm an attorney and I agree with your attorney -- 60 days is very reasonable. I know the wait is frustrating, but what's the rush? 

If you are planning to do a major renovation / redevelopment, etc., you can amend the P&S to allow you and your agents (anyone working for you) a reasonable amount of access -- don't expect the keys, but entering the property multiple times should be fine.

Likewise, if you are looking to rent the property, you can negotiate and amend the P&S to allow you to show the space to potential tenants.

Finally, if you're using traditional financing, most banks need approximately 60-days to underwrite and close on a loan.