All Forum Posts by: Paul M.

Yes, finding good cash flow properties in OK areas in Boston is a challenge. There is a good market for small sq ft condos in Boston, so I don't think you can assume a rule of thumb, really depends on the situation and what your costs of construction are. The sum of the parts is greater than the whole on the revenue side regarding # of units in hot urban areas.

I would. Or at least mentally approximate it when you look at the project. It is a variable cost with a cost driver that can be directly tied to a project. From a cost accounting perspective it makes sense, regardless of what you are doing for tax or financial accounting. You want to know if you are profitable or not.

OK, the term income property as meaning multiple units is not something I'm familiar with per se.

If the place is run down so it already requires extensive renovation, and the zoning would allow you to do it by right, then I'd convert, you'd create alot of value. If those 2 things aren't true, probably not. You should be consulting with a lawyer who works in the city all the time.

If you want to rent a property, you just rent it. The building code doesn't change when it becomes a rental. You don't have to get the city to approve you renting it out. I'm surprised that the zoning department setup a meeting with you, did you tell them what it was regarding?

What does change from the city's perspective is you lose an owner occupied property tax exemption.

In the city of Boston you also have to register the apartment and get it inspected. This is carried out by inspectional services, not zoning: http://www.boston.com/yourtown/news/allston_brighton/2013/08/boston_gives_landlords_extra_month_to_comply_with_new_rental.html

If there is something wrong with your unit that inspectional services might cite, you will already know about it when you buy it if you are using a home inspector.

I've always lived in multis with tenants in other units. When I was younger tenants in the same unit as roommates. They rarely knock on my door, they almost always email or text-so it basically feels like other rentals that are on different locations. Of course that is a function of who the tenants were.

I wouldn't let that kind of concern sway you from buying a multi to live in. The advantages are so great.

As I recall, this is what Michael Keaton's character did at the beginning of Pacific Heights.

I'm not using a broker, what do you think of asking the seller's broker to give the buyer's broker commission to the seller, in order to make my offer more attractive?

Charles Perkins if you save spending a dollar, you really save spending the after tax value of the dollar. If you had spent it, you would have gotten a tax deduction. Right?

For the most part a dollar earned is the same as a dollar saved. Ignores capitalization, people who are maxed out at 25k in losses and have to defer etc.

TD Bank gives the same rate for investment properties as they do for owner occupied. You will need 25% equity. A local bank might also do it.

In my market where there is so much legal exposure in the tenant selection process I wouldn't do it. I just use craigslist, and I provide more content on craigslist posting than others do, then I use the initial correspondence to make sure they are relatively likely to like the place (reverse screening). I generally do less than 5 showings, which either means my screening process is good or my price is too low!