All Forum Posts by: Steve McGovern

@Frank Patalano wow. You really created a stir here! I should have known, but didn't see that this was from mid March.

Thank you profusely for your dedication, Frank. In about 1/2 hour, I only got down to April 27 while surfing on mobile, and that was reading very little. I'll be back to review in full and hopefully even see your reply to me and others from desktop. You're to be commended. Have a great day.

@Frank Patalano Money. Only money.

@Mohsin Mazhar the wife and I relocated to Lowell from Quincy, and prior Jamaica Plain, 15 years ago and are extremely happy with the City. Live in Lowell, buy two houses, save time, energy, money on your commute, and embrace the arts scene and cultureS-- plural emphasized. Speaking as a resident, that's one of the things we love most about the city is the plurality and diversity in both demographics and in available arts/college scene/ historical values. Many great cultural roots here. Lowell's really got it all.

Other people also mentioned Southern NH, and Nashua and Salem are great cities with a reasonably easy commute to Lowell.

Definitely do your research for two reasons: 1) NH residents get killed in property taxes but there are no sales or income taxes.

2) because of that lesser tax base, NH residents get significantly fewer benefits, including unemployment in the event of layoffs, etc. The fact that you're working in Mass should temper the second point for you, fortunately, and the first point, unfortunately-- you'd still need to pay income taxes to Mass. None of this may be quite relevant to you, but no Mass V NH analysis should be complete without reviewing these variables.

Am I bullish on Medford? Absolutely not but as others have already stated, deals are VERY hard to come by in that turf. Newton is even worse, but will almost never lose value.

@Jeff L. Hey Jeff:  Good luck! Sounds like a great project for you.

Again, knowing nothing about your building, I think 2200 feels a bit aggressive in Back Central...  AGAIN depending on precise location,  structure,  condition, area (in sq.ft.), and the building's amenities.  E.g., if you put in the highest efficiency heating and you're giving your tenants a document-able savings on their utilities, then you should definitely be shouting that out.  

I think if you need 2200 on one or two Units to make it work, then Section 8 is likely to be your avenue.  Again, Section 8 gives you a reasonable shot at actually getting the money, whereas one of your market tenants might be inclined to split 4, 6 months in, if they find another similar place at $2K.  

I think your studio is on target, give/take 10% You might even be able to get a bit more for the 2 Beds; again, above disclaimers all apply.   

It all depends on the property, and where your breakeven point is.   

Just saw your other posts. Yup, Back Central remains squirrelly, again, depending on location.

@Jeff L. Hey Jeff, welcome. It really depends on the units, neighborhoods, etc. Most urban areas will vary wildly even from street to street and Lowell is no different. Have you considered Section 8 for one or more Units to mitigate your financial risk? (Yes it may or may not bring other risks, but the finances will be handled.)

I think this goes w/o saying... but there are lots of people with various experience all over this site, so bear with me: if (anyone) thinks (s/he) is going to get Somerville rental rates, commercial rates, or ARV's in Lowell, (s/he) is gravely mistaken.

What figures did you use for your proformas?

Best of luck,

Steve

@Mark Enriquez welcome. Quite a bit of Titlework in my background too. It's a good background to have. I would recommend joining your local REIA. You have a skill that's a mystery to many. Even more so if you can also analyze that title, not just search it.

In exchange, you'll make a whole lot of new broker, investor, and attorney friends.

Good luck!

Agreed with ALL of the above, but just one question:  Some Leases say the parties WILL issue estoppels; others are silent.  Still others say they MAY be requested.  I don't think I've ever seen a Lease that says they Won't/ Can't  (That would be suspect to anyone with any savvy whatsoever, incl. Buyers, partners, financing bodies, and/or future management co's. ) 

So...  What do the leases say?  Lean on those provisions, if they're there.  

@Shannon Sadik, How'd it go here, if you don't mind my asking? 

@Alex Huang First, these buildings are usually in a zoning district that allows Medical use. Consult the Muni. They are often NEAR or if not near then AFFILIATED with a medical institution such as a hospital. On the inside, think about every doctor's office you've ever been in: the major additional system comcern is that Plumbing is everywhere. You should have access to SECURE (HEPA issues) and often quick communication means such as fiber to your building. STRICT compliance with ADA is imperative, and additional 'comforts' including elevators would be almost definitely necessary. Parking should be ample and welcoming, (small carport roof at entrance for rainy times and wheelchair maneuverability maybe?) and drive-ups for drop off (or valet) could be contemplated. These are only the first few things that jump to mind; definitely consult a broker in your area who's experienced in navigating this very specific asset class.