All Forum Posts by: Brian J Allen

lots of good stuff in Worcester.  let me know if you want to see anything.  off previewing another 4 multis today

You can look up 1031 exchanges on line and it will provide timelines. Essentially you sell your place, identify a more expensive property, and buy that within the timelines. this allows you to delay the CAP gains taxes and the depreciation recapture until you sell the next property. I agree with Erin that Harry Kotseas' office is a good law firm.

Now is a great time to sell in Worcester.  if you can get $3300 a month then you should be able to get $275k-300k for the 3 family unless you need things like a roof and windows which could drop the price.  i agree with Wes on the lease option side where they get an option to purchase the house at a fixed price for the term of the tenancy.  it is much easier and cleaner to sell.  That being said, you may have tax implications you have to address and perhaps need to do a 1031 exchange so as not to pay the taxes on the depreciation and the capital gains.  Renting would allow you to avoid dealing with those things for a while.  if you are still trying to manage your property and collect rents and plow/shovel all of those issues go away with a sale.

I agree with Mike, Worcester will allow you to get the CAP rate you want at a lower price point. There is a huge inventory of "3 Deckers" in Worcester that trade at around $300k. The most important thing about Worcester is to know the market and use a local realtor. An agent from Boston may be able to analyze the property and the financing, but you need to know the neighborhoods in Worcester and who the tenants are going to be and the benefits and detriments of where you buy. I have been in over 300 Multis in Worcester in 2018 and have walked most of the neighborhoods so i have an understanding street by street what you are getting into. Let me know if there is anything i can help you with. @worcestermulti

Make sure to check with your advisors as to if you can put the properties into the LLC after purchase. Often those protections of the LLC do not transfer if you buy personally then put the property into the LLC after.

I had a similar issue about 20 years ago and when I went to my Attorney, he simply said, "you should be glad they moved out" .  The implication is that they could have stayed (in MA the tenants have lots of rights) and simply not paid rent and trashed the place.  Be happy they are gone and you can move forward.