All Forum Posts by: Cheng Bin Zhang

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.

You can ask for a month worth of termination fee (even if it's not explicitly stated on the lease).  Unfortunately, if they push back and leave without paying, it's quite difficult to get that money back.  It's likely more expensive to take them to court than to just take the lost.   You also should start looking for the tenant ASAP to minimize vacancy.  

Moving forward, I would not do a 3 year lease (at least not for residential tenants).  And include an early termination clause in the lease <- I learn this lesson the hard way with my first few rentals too.

Local Boston RE landlord here so happy to connect and chat too.

Pam, I highly recommend getting an eviction attorney and start the process asap.  These things cannot wait. Attorney fees depend on the complexity of the case. I have some I can recommend if you dm me. 

Best,

Cheng

@Ling Lin - It's better to look at it from a rent-to-value ratio perspective. In higher OO (Owner-occupied) areas, the home values tend to appreciate more and be more resilient during a downturn. But the RTV is low because home prices are often much higher than respective rent (more people elect to buy in these areas rather than rent).

In areas with lower OO, larger renter ratios, the RTV is higher. Homes are generally less well maintained and are more prone to economic fluctuations. So technically it's "cheaper" to rent in a wealthier, high OO area.

From an investment standpoint, it depends on your strategy. Higher OO areas are best for flipping/condo-conversions. Lower OO areas are better for cash flow and long-term hold, even house hacking.

Here's an article that explains why:

https://www.washingtonpost.com...

@Nico Dandini - I think this is ultimately a question about personal risk tolerance.  In the 10+ years we've been house hacking, we've seen people hack a 200k condo to a 2mil dollar multifamily around Boston.

Since the 08 recession, underwriting requirements have really tightened up so if you're looking for a "hard" ceiling for how much you could afford to borrow/purchase, a good lender will have an arsenal of metrics to make sure you qualify (ex. DTI, reserve requirements, rental analysis, appraisal, etc.).

Around greater Boston, vacancy risk is relatively low.  If you're looking for a "value-add" property that needs a bit of work, the biggest risk that most of our clients run into is deferred maintenance and capital improvements as labor and material costs have gone up.

The most non-extraordinary way that I've seen people making millions from house hacking is by simply buying a multifamily at a fair price, in a B- area, consistently raising rent, minimize vacancy, address maintenance issues, and just hold on (refinance and repeat).

Hope that's helpful.  Always happy to connect with fellow house hackers.

@David Chan - No worries.  A lot of our clients (international esp.) are shocked at the age and the price of our housing stock...  Same goes for NYC, SF and other T1 cities here.  Unfortunately, I don't see demand easing for housing (in fact there's a shortage here.).  Can't say I know Tucson too well.  My sense is that areas like PHX, Dallas, Austin, Houston (southwest) are all very hot right now.  Prices are also rising (albeit not to the level of SF/NYC/BOS/LA).

David - you’re probably better off posting this in the AZ forum instead of MA.  How long have you been looking in MA?  Happy to connect and talk real estate regardless of location though.  Cheers, Cheng 

Stephen - where are you based out of in Boston?  I’d highly recommend taking the allston Brighton CDC first time buyer course.  It’s not free but would qualify you for low interest financing programs in the state. 

I’m actually a volunteer instructor for this course and would be happy to meet and chat. 

Cheers,

Cheng

@Sam Silton - based on my 8 years of house hacking in Boston, I've never had a roommate bringing up FHA issues with me. That said, always been courteous and professional. Happy to chat about landmines off line. Cheers,

Cheng

Hey Sam, congrats on the condo hack journey.  Obviously always check in with an attorney about this.  When it comes to finding a roommate, you effectively have a lot of free range in selecting the right person.  Is your roommate applicants launching a specific complaint against you?

https://www.masslegalhelp.org/...