All Forum Posts by: Patrick Kelly

I wouldn't dictate the use. I think several people have pointed out checking with townhall to see what it is zoned for, but depending on the use you could list it with a commercial broker and let a business come in and decide how to use the space. I've seen everything restaurants (with a bar in the confessional), condos, retail stores, beer halls, a YMCA, fitness studios, all in converted churches, but the theme of the business corresponded with the venue. Depending on the tenant they may ask you to pay a portion of the interior fit-out, which can be expensive depending on the use. I also wouldn't throw any of the interior materials away the pews and alter can all be used as part of the design of the new space and save money on materials.

Have a larger reserve account and money set aside for repairs than you think you need. Something will always go wrong with your rehab and things always break. You will sleep better at night knowing you have reserves to take care of the issues as they come up.

Hi @Quinton Slay I actually live in MA, but work in Providence everyday and have looked in investing in this market as well. To touch on a something others have said, you could house hack in STL and in Providence. With the 1 year difference you could get an FHA loan for both properties. House hacking in Providence does have a distinct advantage where you will actually save money compared to someone who is only investing in the market. Providence has different tax rates for people who owner-occupy a multifamily in the city vs. people who are non-owner occupants. As of right now the real estate taxes on property in providence is owner-occupied rate $19.25 per $1,000 of assessed value and its non-owner-occupied rate is $33.10 per $1,000. Just something to keep in mind while you analyze deals

@Jose Duque Your parents may not be able to see the value in the decision you are making now, but in 5 years when they see where you are and how far you came in such a short time they will be more than proud of the decision you have made. If you have local knowledge and the numbers are good follow through and reap the rewards. Good Luck!

Hey @Theodore Renka, really nice project! I was wondering how much of the $75k for rehab was soft costs and how much was the construction costs? Also how long did it take to complete? It looks like you renovated everything and it came out really nice. 

@Lloyd Lind, thank you for clearing this up for me,. I felt bad because I wanted to make sure I wasn't short changing the agent.

So I am in the process of turning over my first unit. I have been doing all the advertising myself, meeting people to show the unit, following up about applications. I have just received a couple that has been working with a real estate agent that is interested in renting the unit and are looking to put a deposit down to hold the property. Things seem to be going well. I had a call with the agent to discuss the paper work and the agent asked if I was going to pay their fee. This took me a little by surprise, I was under the impression that if I contracted an agent to find prospective tenants, then it was my responsibility to pay the fee. If the tenant had contracted the agent to find them an apartment, then it was the tenants responsibility to pay the fee. Am I incorrect?

Just a little extra back ground this is in Massachusetts. The tenants just used this agent to sell their house and are doing a short lease while they look for a new house using this agent.

Thanks for all the feedback. Do you find that something like this is a red flag for other issues, ie lead, radon, nob and tube?

@Tammy Richards That is good to know about resale. It is a historic home, so this is something to consider. I'm weary of putting vinyl siding on a house with distinct character because I think it will make it look out of place or cheap.

I found a deal in Portland Maine that I really like, but in the listing it states that it has asbestos siding, my reaction is to run for the hills. Is this the right reaction, or should I consider it? Does anyone have experience with them, are they fine if they stay in place or should they be removed?

@Mike Hurney I agree, I'm not sure there is enough job growth to fill those units. @Francisco Feliz I agree that the areas outside of the A areas are the places to look. I think along the same lines as you that Dorchester, Roxbury, Chelsea, Rever...ect. are the markets to look at. They will be much more affordable and where one of the largest populations, millennials are going to be able to live with access to amenities, transit, and quick access to downtown. I would be weary that as the class A properties do have to drop their price then it will start to bring prices down on B and C, so now is the time to buy right and ensure that there is cash flow. 

I don't believe that boston has seen a Y-O-Y reduction in rental income, but I'm preparing myself for a drop in rental prices, whether it is through actual price drops, or if rental price goes stagnant while wages, taxes, and costs of living expenses catch up. I'm trying to factor in a 10% decrease in rental while still covering all costs and have some cash flow.

I don't believe Boston is the only market that has to worry about this. I would be concerned if I was investing in San Francisco, D.C., Denver.