All Forum Posts by: Jacob D.

"Effective March 1, 2024, the Applicable Payment Standard (APS) for ALL MRVP mobile
voucher participants shall be equal to 110% SAFMR, except as noted. The Applicable Payment
Standard for all ZIP codes in Lynn, MA shall be 100% area-wide FMR. The Applicable Payment
Standard for Nantucket and Martha’s Vineyard shall be 110% area-wide FMR. Please see an
attached listing by ZIP code. EOHLC will make additional resources, including an Excel tool,
available to housing agencies."

https://www.mass.gov/doc/mrvp-applicable-payment-standards-e...

What does "Applicable Payment Standard" mean? Does this mean that Lynn's payment can't be less than 100% of the FMR listed on HUD's FMR website? Or does the "rent reasonableness" still apply?

I just saw this on mass.gov, and I'm having trouble understanding it. Does "applicable payment standard" include utilities? 

Thanks,

Jake

 I already own the house, and it will cash flow with long term rents. The question was about deciding to rent long term or short term

For the past month, I've been doing a short term rental for my 1 bedroom apartment in a 3 unit building. Now, I'm having trouble deciding if I should rent the other units short term vs long term. The other units are 3BD / 1BA and would typically rent for 2800-$3000/mo each, long term in my area. The building is located downtown of a touristy/beach town.

Here's some details about the numbers/location/property:

- $50-70k per unit estimated revenue for STR (majority is from 4 month peak season in summer/early fall). Three bedroom units.

- $36k long term rent not taking into consideration vacancies

- We will be doing cleaning/turning over units by ourselves. We don't mind the work, and already have a process/checklist down. We would otherwise be paying ~$20k/unit per year in cleaning fees. 

- Downtown location, near restaurants and a 3 min walk to train station

- Only 2 off street parking spots, street is permit parking only but there is free parking down the street
- Units have just been completely renovated
- The city does not have any ordinances against short term rentals


The biggest hurdles for me are: we're about to go into a slump/down season; potential parking issues; and if one of the other units were rented long term - dealing with the hassles related to that. I worry about having bad guests throwing parties, especially with a 3 bedroom unit. It would also cost about $5k per unit to furnish it - this isn't that big of a deal but it is worth considering.

What would you do? Does it ever make sense to have long term and short term rentals in the same building? Does the difference in revenue justify doing it? Or am I just getting paid to do another job?

Side-question: anyone have cheaper alternatives to Proper insurance for MA? They're so expensive, but I'm having trouble finding an insurance provider for short term rentals.

Here is a photo of the void space + vent. 

Here is a photo of the bathroom:

I have a tiny bathroom with a plumbing stack running right through the center of the bathroom. It makes the space feel tiny, and there is additional unused space attached to the bathroom. I want to move the stack away from the center somehow, and redesign the bathroom to take advantage of the unused space. How would you redesign this bathroom?

The immediate issue is the sink is blocking the doorway partially. If I move the stack somewhere else, and move the sink to the unused space area it will make the bathroom feel much bigger than it is. 

The dimensions of the bathroom are roughly 6ft wide x ~5ft long. 

Attached is a diagram and will attach some pictures of the space. This is a 3 family with a large basement. The 1st + 2nd floors are the exact same layout, and have drop ceilings for better access to the plumbing. 

In the Boston area, I was quoted at 7% for an investment property (25% down) conventional 30 year with 800 credit score and really good W2 income history. Anyone get cheaper than that recently?

765k purchase price 6.5% (w 2 points) interest rate investment loan 25% down. Three 2bd 1ba apartments with a 6 car driveway and a large yard in MA. 2,550 sqft living space on a 8,000 sqft lot. 

$192k downpayment

$7,000 monthly rent (all section 8)

~$4.500 mortgage (PITI)***

$900-950 /mo average for: trash, water, sewer, general maintenance, snow and yard cleanup, and other utilities (2 heating bills are paid by landlord)

Seller pays all closing costs that they are allowed to, and buys 2 points

Current year long leases to be transferred: 2 heating bills are paid by landlord (~$200/mo each during winter; $50/mo during other months

This is in a C neighborhood within walking distance to the one of the biggest high schools in the town. It is on the better side of town, but <1 mile to a high crime area. Two commuter rail train stops are a short bus ride away (~1 mile). 

In general, the units were rented at top of the market. If rents were to come down over the year, this neighborhood would for sure decline. If there were another vacancy, I think it would take a good 2-3 months to rent in this area. I'm not sure how to factor this into the numbers. The current tenants are just OK. 3rd floor tenant has been there for years and takes care of the trash + yard. 2nd floor has been there a couple years and has had behavioral problems previously, but always paid. 1st floor is a new tenant and unknown to me.

Also, the apartments are very standard ~800 sqft apartments but need updating. Each needs new appliances + kitchen floors. The heating systems are old, but the water heaters were all just replaced. In general, it feels like a just collect the rent checks and turn a blind eye kind of rental. I don't feel great about the neighborhood, but long term it has potential and 5-10 years from now I can see this part of town improving.

My originally purchased a 3 family in his own name, he quitclaimed the deed to his LLC. He refinanced a year ago and the mortgage is for about about 70% of the appraised market value. Unfortunately he's starting to feel old, but wants to sell it to me. What is the best possible way to purchase / transfer his 3 family to me? He ultimately wants to use the 25-30% equity he has to pay off his personal home. He's also willing to give me 6 months to figure out how to buy it. How would you buy the house if you were in my situation?

Notes: I currently have a 25% downpayment available in short term treasuries. I also own two other rentals, have 2+ years landlord history, make high W2 income, have great credit, plenty of reserves and no other debt. The rental is fully tenanted and cash flowing well.

- Is it possible for his lender to allow me to take over the mortgage (especially since I am an ideal buyer), and I can just pay him the 25%?
- Is this an "arm's length" transaction even though the rental is under an LLC? (What does that mean? / Can I even buy with a conventional mortgage?)
- What type of lender should I be looking for? 

Just to give an update, I was lucky and she gave the keys (apartment completely empty and in good condition). This was my first actual tenant to end their lease in the 3 years I've been renting (5 units) so far. 

My lease did have a paragraph about what happens if they overstay when the term ends (additional rent charges and prorated). I'm planning on doing upgrades on the apt so there wasn't a huge rush to get the tenant out.

I still should have made it 100% clear what was expected before the move out date. I didn't communicate properly, and also didn't treat this situation like a business would. That's what I'll work on for the next tenant. Thanks everyone for your help!