All Forum Posts by: Steve McGovern

Ok, full disclosure (in case my name/header ain’t enough for some of you! :-) ) I live in Lowell. That said, the real answer is... BOTH! For the sake of our own personal residence, my wife and I chose Lowell 14 years ago based largely upon, among other things, the interstates— Lowell lies right at the crossroads, whereas Haverhill is on 495, but it’s a hike to either 95 or 93. We both work in Real Estate; my sites are all over NewEngland, and my wife works in Boston, but could find positions in Waltham, Marlborough orWorcester at the drop of a hat. Lowell also has the National Park, the Festivals, the University and the colleges...and if you’re into geography, not one but TWO rivers, The Mighty Merrimack and the Concord. On the other hand, my best friend chose Haverhill. It’s a little closer to the coast, it’s still a gritty shire, and the downtown is phenomenal. Haverhill is a little more-well established, a little more stable. (e.g. , in another thread, I noted that I grew up hearing “Don’t go to Lowell!” I never heard, “Don’t go to Haverhill!”) Retail is approximately equal, Haverhill likely has a slight edge in primary and secondary education, proximity to NH is fundamentally equal, and the age, vintage, and quality of the overall housing stock, I would declare to be neck-and-neck. Nothing wrong with either one. If you want stability, I’d pick Haverhill— it’s a bit smaller in population, (by about 40%!) but holds its values. Lowell is a cultural powerhouse and a true city of over 100,000. If you prefer the arts, or prefer to invest in the ebb and flow of a full-sized City, then Lowell is the one for you. What’s not to love about either??

@Peace Lily ....Of course she is...   :-(  As I noted, it's less of an issue of reality with water, and more of an issue of perception.  That's why I recommended getting that remediation company out there Stat.  Whether or not it's true,  people think "They're professionals.  They gotta know what to do more than my idiot landlord. "    

C4K;  Sorry. "cash for keys."  In other words, you pay her to get out & leave you alone.  

@Tim Kaminski,  on my second point, the Muni-County level due diligence,  a quick google search of "City of Tampa", Impervious Surface and/or Stormwater released a littany of issues.  You definitely need to familiarize yourself with this local concern before you touch it.  

Good luck.  

All depends on what you negotiate on the way in. 

Most rent-to-own type deals are intended to be principal residences for the foreseeable future.  They're created in new subdivisions of old family farms or something like that.  Another option is that you lease and negotiate a ROFR, but that situation means that the Owner wants to sell... not that you have the right to sell it out from under them or force a sale.  the ROFR is a 'remainder' type of interest, not the primary interest. 

Considering your intentions, I cannot recommend going to the local Staples and pulling an "Installment Deed" from their business forms aisle.  Hire a Lawyer and fully disclose your intentions and wishes to said Lawyer.  Askk Him/her to help you develop a plan.  

Regretfully, I've been involved in an overhead, multi-tenanted burst pipe & flood situation as well.   You have my sympathy.  If your situation is like mine, someone soon will be calling MOLD! whether or not that cry is founded.  I would recommend getting a disaster/remediation specialist in there as quickly as you can to put ALL of your tenants at ease.  

As far as the demand goes, you can see this one of two ways: 1) If you like this tenant, generally, then I would do everything in my power to keep her and keep her happy. Your future reputation will thank you.   If on the other hand, she's an imp, then this is your chance to get rid of her.  Hold out, say "no" and offer her a one-time-only chance to vacate her lease and the premises.   Don't be surprised if she asks for relocation fees.  if you have enough problems with her... well, let's put it this way: is it better to pay her to get out-- C4K style,  or to repeatedly hire mold specialists for the next 18 months every time she gets a common cold?   Your call.  

As far as Liability on your upstairs tenant is concerned, I'd refer to your Lease itself, and area attorneys to help you.  There are WAY too many variables, up to and including what you "Should have known"; area rental/heat law, etc.  I would honestly recommend consulting an attorney-- NOT to sue/recover, but first to see if you even have a case.  

Again, sorry you're going through this.  Good Luck. 

@Aaron Phillips,  I have a couple of thoughts that may or may not help you, but I hope they do.   

When we talk about businesses working together to benefit each other, we talk about compatible businesses.    The Real Estate and the House/Property Cleaning  co. are compatible businesses.   Put this into your head- NOW:  You are not  just a "Cleaning service. " You are a PROPERTY CLEANING SERVICE.  You make properties more beautiful, or sanitary or more livable or more workable. You know about green cleaning solutions. You know about bathrooms and kitchens.  You know what solutions will dissolve what finishes.   You know when to use bleach, when to use ammonia, and when to just pitch the damn thing.  

Congratulations-- now you're a Tradesman, no different from a plumber or an electrician.   Absolutely do NOT drop this company-- it gives you a legit way in.  

Now,  I would do two things simultaneously:  1) attend all the REIA's you can and pitch your service.  No one needs Cleaning services more than people who are moving.  

Amend that-- if ANYONE needs cleaning services more than people who are moving, then it's the other parties to the transaction and the service providers-- Lender REOs, Selling Brokers, Probate Attorneys, and Heirs of Family members who would like nothing more than to sell Aunt June's house without having to rummage through her unmentionables, and YES, RE Investors who have just (ahem) "Stolen" the neighborhood Victorian.  You know the one-- the run down one with the carraige house that the hoarders and their posterity have occupied for over a decade.  Yeah that one.  Buyers need cleaners too.  That's for sure.  

Now, the important piece:  2)  GET YOUR LICENSE.   This will get you a real start in "real-Real Estate" for short money.  It'll allow you access to new  Owners, new properties, and yes, new clients for your existing company.  Others here have simply said "work more."  They're right, but that's an empty comment.  This method gives you an actual path.  Whether you work 20 hours or 50 behind the RE desk, you'll be getting that "in" and whetting your appetite.  Furthermore, you can build 2 compatible businesses simultaneously-- tell all your Cleaning clients all about your real estate passion; tell all your RE Clients all about your willingness to get your hands dirty on their behalf.    These businesses deserve to be built together.  

One last thing--  Credit aside, I offer you this final comment:  

$3K is 3% on a $100k home. I bet you can buy SOON if you want to. Others may say "no, wait..." and that may be prudent. But if you can find that risk-mitigating duplex where 1/2 is turning rent and the other is your contribution... then I bet an FHA Loan is more or less in line with your ability. Talk to a trusted loan officer before you write yourself off. Don't jump at the first thing they say. Deliberate well, but I bet you're closer than you think.

Good Luck.  You're gonna make it.  

Originally posted by @Tim Kaminski:

@Steve McGovern great point.  Should be much more concerned with water drainage at this stage.  House has already been inspected but it rained a bit today and it pooled slightly towards middle of way but had nothing near foundation.  I think my best bet at this point would be to swing by for the next big rain as I can't really just show up and flood their yard with a hose.
So if I see any issues with water drainage, next step would be to possibly break up some of these areas and create a concrete swale for this area?  Thanks for feedback

 Tim, yes, all that on swales/raceways is true-- proceed as mentioned as necessary to protect your structure.    But you also may find the opposite is beneficial-- why not put the 'garden' in the area where the water already naturally goes?  OR,  why not create another swale for the sole purpose of recycling  all the waste directly where you need it?    In another post you mentioned the intensive nature of lawns in the vicinity.  This property gives you the unique ability to easily utilize every drop of water that Mother Nature provides.  Take this odd property and use this fact to your advantage.  

No, you can't quite just show up with a hose, but perhaps you can mention this to your Inspector-- assert that they SHOULD HAVE thought about drainage here, and ask them to add a note stating something like "subsequent inspections of directionality of exterior stormwater flow are recommended..."  If you can get that comment in there before your lender sees the inspection then I bet you CAN exactly show up with a hose. Furthermore, assuming you've got a mortgage contingency clause, it'll be in the lender's interest to conduct the test, too, and that's when you rely upon that contingency.  

** Edit-- it's stormwater, not wastewater. :-) 

PS-- before you start to break any of it up, the term that you need to search in your Muni-County building, zoning and planning code is this: 

IMPERVIOUS SURFACE RATIO

If the County has a requirement, and you're not compliant... you may be grandfathered until you touch it.  As soon as you do anything to it, all bets are off- they could make you come into compliance with current Zoning on Impervious Surface area allowances.   

@Tim Kaminski 

Honestly, you're looking ahead.  The BIG question is, "What does your drainage do?"  I wouldn't even think of doing 'landscape planning/architecture' in this environment without first flooding the place, seeing where the water flows v. where it pools. 

If you need to replace hardscape with hardscape-- perhaps because the intended "Walkway" becomes pooled with 3" of standing water when it rains, then break that up & consider semi-pervious pavers instead.  If you need to channel water away from the foundation because it seeps into the Crawlspace/basement, then creating appropriate waterways and/or swales is  MUCH more important than making it pretty (sorry!)   

If possible, flood it BEFORE you buy, so you can anticipate and renegotiate any issues.  Make that part of your property inspection.  

AFTER all that's handled and you can predict the water action...  decks, gravel-y gardens and other containment areas are lovely, yes. This Old House has stuff on this type of development, all the time.  Don't forget to consider raised flower and veggie gardens (**Don't use pressure treated wood for consumables!!!**) -- they are another great way to create barriers, greenery and utilize your hardscape in a more-traditional manner.  Furthermore, if you throw a set of solid casters on the bases, they're mobile, too.  

Good luck.  Sounds like fun.  

Steve

@Cosmo Iannopollo Seriously, look in Lowell.  Yes, it's a city.  Yes, there are a couple of bad parts, but there are also GREAT Areas, MUCH more house for the money, multis are available, your renters have bus routes,  and there's phenomenal culture.  

For the record, I lived in one of those "bad parts" of town for 12 years...   NEVER, Never had an issue. Not me, not my neighbors.  The place is quietly coming around, which means appreciation is slower than other areas, but much more 'real' and earnest than if a neighborhood suddenly flips in a 'trend'  and gentrifies overnight.   

I grew up on the South Shore.  All my life I heard "Don't go to Lowell!"  My wife & I landed there and fell in love.   I'd be happy to grab coffee with you.