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All Forum Posts by: Cheng Bin Zhang

Cheng Bin Zhang has started 37 posts and replied 79 times.

Post: The Newest New England Investor

Cheng Bin ZhangPosted
  • Real Estate Consultant
  • Boston, MA
  • Posts 85
  • Votes 39

Hey Brittany,

Welcome! I’ve been a serial house hacker in the greater Boston area so happy to connect and share some lessons learned.

Multifams inventories are quite low depending on your budget and location preferences.  I still see Oppy in areas like Quincy, Malden, Everett, Revere, and Chelsea. 

Ping me if you have questions. 
Cheng 
 

Post: Husband and Wife Looking for Multi-Family Property in Mass

Cheng Bin ZhangPosted
  • Real Estate Consultant
  • Boston, MA
  • Posts 85
  • Votes 39

Welcome!

There are plenty of options for house hacking here but really depends on your budget, location preferences, and physical conditions/amenities. 

As a start, I’d look around Everett, Malden, Chelsea, Quincy, Waltham, Revere, Lynn, etc.  I’ve been house hacking /BRRRing around greater Boston for the past 12 years so happy to share lessons learned.  Feel free to message me directly. 

Best,

Cheng

Post: How to ADU in Massachusetts

Cheng Bin ZhangPosted
  • Real Estate Consultant
  • Boston, MA
  • Posts 85
  • Votes 39
Quote from @German Fernandez:

Hello, 

Thanks for this informative example of a complete ADU process in MA. I'm working to do the same in the state as well but have had some push back with the local municipal departments.

Cheers to you for a job well done 👍. It can be challenging to find ways to house hack in a market like this one for sure. I would love to pick your brain about this more and how the numbers worked out.

Curious on how you were able to get the  OK on a "special permit;" mine is a also detached garage, except the neighbor next door seems to not want this property to be run as anything more than a single family property and have made it known. I'm in the Brockton line next to west bridgewater area. A nice quiet area of brockton. Maybe that's why, they want to keep it that way 😅 not sure 


Happy to. Message me your questions.  

Post: How to ADU in Massachusetts

Cheng Bin ZhangPosted
  • Real Estate Consultant
  • Boston, MA
  • Posts 85
  • Votes 39
Quote from @Daniel McDonald:

Looks great! I’m in Beverly ma and hope to do this some day. 

Thanks Dan. Happy to share some lessons learned. 

Post: How to ADU in Massachusetts

Cheng Bin ZhangPosted
  • Real Estate Consultant
  • Boston, MA
  • Posts 85
  • Votes 39

Housing is a sh*t show in Massachusetts. The state has consistently ranked as one of the most expensive places to rent and buy. It’s such a problem that young professionals (particularly ones with family) are leaving in record numbers. Such data has pushed lawmakers to take drastic measures — including implementing upzoning policies across the state. Caught in the crossfire between the YIMBYs and the NIMBYs is the contentious topic of ADU or Accessory Dwelling Units. These are sometimes referred to as in-law units or granny flats and they are not new to the commonwealth but a favorable ADU policy has the potential to add over 10,000 units and offer homeowners a potential source of income.

As a lifelong house hacker, my wife and I immediately recognized the potential of this 2-story garage in the back of the property. It was previously used as a crash pad for the owner. The exterior clapboard sidings, rake boards, fascia were slowly rotting away from years of neglect. However, the fact that it was an existing structure with utilities and plumbing running to the garage made our lives significantly easier.

Existing 2nd Story Crash Pad

ZONING AND PLANNING

We're located in a suburb of Boston where ADUs are allowed by-right… except if the structure is detached from the main building 🙄 which requires a "special permit". This little exception (which was quickly over-ruled after I completed my ADU 🙄🙄) sent us on a wild goose chase. Although we weren't changing the exterior, we were asked to provide a survey of our property, elevation drawings, stamped FAR calculations, and sat in front of the city councils to obtain an approval (the special permit). This means thousands of dollars more in engineering, surveyor, and architectural cost plus months of extra work.

Original 2-story garage

HISTORIC CONSIDERATIONS

To complicate things further, the structure is located within a historic district. This means we have to maintain the aesthetic/character of the structure. Any deviation from in-kind materials will need to be approved by the historic commission. We weren’t particularly picky about our exteriors but some materials were outright prohibited including vinyl or aluminum siding, vinyl windows (which would have saved us so much more money), and more. This not only adds to the project cost but also a long delay in delivery time. In total, we spent about 6 months ironing down the window size, materials, color, and any exterior changes visible from the street.

Getting Exterior Changes Approved

GETTING TO WORK

Once you get through historic and planning, the building department (ISD) is a whole different animal to wrestle. Note that some towns in Mass have notoriously stringent building rules while others may be more lax… your mileage may vary!

With our town and maybe yours, any major alterations (work over 50% of the property) will require updating sewage and plumbing to the main line <- this is quite expensive and luckily we didn’t need to do this. Likewise, major alterations and change of use would require the structure to meet the new HERS (Home Energy Rating System) score. Because we were changing our garage to a dwelling unit, we had to comply with the new HERS requirements including high density foam insulation, Energy Recovery Units, and more. We had to bring on an energy audit firm to test and certify the work before and after construction.

Beyond the planning, permitting, and historic reviews, the rest of the project runs as any major renovation projects. We got multiple quotes covering demolition, carpentry, siding, roofing, HVAC, plumbing, electrical, plumbing, insulation, plaster, flooring, and more!

Original “living room” New: Office Space Original Bedroom New Bedroom Original Bathroom New Bathroom: View 1 New Bathroom: View 2

INTERIOR PRODUCT AND DESIGN CHOICES

Cooking and dining together is a big family activity for us. As such, we decided to include a fairly large island which can comfortably seat 10 people. The waterfall on either side makes the space kids friendly (no abrupt sharp edges). We also tiled the entire first level because the property is partially built into a hill and this would help reduce moisture issues.

We also added a stacked laundry center by the front entrance. This helps to partition a half-bath next to the back entrance. In terms of color scheme, we kept it simple with largely white trims, white quartz countertop, and black hardware/fixtures with a hint of gold on our pendant lighting.

One other thing you may notice is this is a fully electric house. Electric stove, dryers, water heaters, and high-efficiency Mitsubishi heat pumps. This also helps with our HERS rating.

Converted Garage Space New Living and Dining Space New Living and Dining Space

IN SUM

If I could do it over again, I would have chosen a location with fewer restrictions (historic and planning). Having to order custom windows really pushed back the timeline. Our drywall subcontractor also sealed up a few vents which caused some rework. I opted to have most items delivered — which the contractors appreciated. Overall, this has been a very positive project and the family is enjoying the extra guest/entertaining space. Anything worthwhile in life takes time, so enjoy the journey and happy ADUing.

Property was impacted by a dry cleaning spill in the 1980s.  Mitigation and remediation has been completed.  Premise is deemed safe and habitable by environment consultants and DEP.  Are landlords required to disclose this contamination and remediation to tenants?  Location: MASS

Post: Feb Massachusetts Housing Data

Cheng Bin ZhangPosted
  • Real Estate Consultant
  • Boston, MA
  • Posts 85
  • Votes 39

Surprise Surprise?

In a surprising twist - single family home prices in Massachusetts came roaring back with a 27% year-over-year increase in PPSF. A lot of this is likely due to pent-up demand from buyers priced out of the market last year.  But are folks suspecting that sellers are underpricing their homes to draw more traffic/overbidding?

On the condominium and multi-family market front, the picture isn't as rosy. Condo inventory remains elevated and prices have attenuated with a moderate 2.8% gain in PPSF. On average, condominiums and multifamily homes are selling below asking.

Source: MLS

Post: Rental Investing and Neighborhood Reviews

Cheng Bin ZhangPosted
  • Real Estate Consultant
  • Boston, MA
  • Posts 85
  • Votes 39

I'm a realtor/investor out of MA. We're looking to learn more about Manchester & Nashua, NH. What are some Class A/B/C/D areas? What's are typical Cap Rate? (for 4+ units, <4 units)?

How are property taxes? Insurance? Renter prospects?

I would love to connect with local investors, realtors, property manage (30-80 units) and schedule a tour of the area.

Cheers!

Cheng

Post: Rental Property and Neighborhood Review

Cheng Bin ZhangPosted
  • Real Estate Consultant
  • Boston, MA
  • Posts 85
  • Votes 39

I'm a realtor/investor out of MA.  We're looking to learn more about Hartford & New Haven, CT.  What are some Class A/B/C/D areas?  What's are typical Cap Rate? (for 4+ units, <4 units)?

How are property taxes?  Insurance? Renter prospects?

I would love to connect with local investors, realtors, property manager (30-80 units) and schedule a tour of the area.

Cheers!

Cheng


Post: House Hack Networking in Massachusetts

Cheng Bin ZhangPosted
  • Real Estate Consultant
  • Boston, MA
  • Posts 85
  • Votes 39

I would say consider where you work, your budget, and what kind of condition you want to manage.  Also pay attention to what pockets of renters you want to deal with.  There are pockets of universities with a dense student population, there are family friendly suburbs, there are biotech hubs in Kendall, and everything in between.

If you're a first time home buyer ( FTHB), there are very generous financing products you should take advantage of here.

In any case, long-time house hacker here in Greater Boston so happy to connect and chat.