All Forum Posts by: Tyler Munroe

Hi @Liam Mallon - not a lender, but would you mind sharing your thoughts on how best to utilize Zillow as an agent? I've heard differing opinions on it, especially in the MA area. Thanks!

 The Salem/Beverly area is great and pretty pro-development/housing from what I'm hearing. It's still a tough market to find cashflow but definitely more doable than areas close to Boston. Haverhill is another interesting area with reasonable home prices and a lot of municipal developments in the works (also the commuter rail and easy access to major highways). I do feel like Haverhill is much in the "path of progress" than comparable areas like Lowell and Lawrence, so it's a city on my radar for sure.

@David Lewis I'm regularly looking at multi-family listings on MLS and can only find cash flow in tertiary markets - think Lowell, Fitchburg, Springfield, etc. Problem with these is 1) they won't appreciate as quickly as those closer to the city and 2) it's a whole different tenant base, usually with a lot more management. Honestly, I've given up on finding cashflow anywhere close to the city due to rates and prices, BUT some other opportunities you may want to consider are:

Live in flip - mentioned earlier in this thread, always a solid option in any market.

Condo conversions - good money to be made from this and since they're a little trickier than a traditional flip there tends to be more inventory available that would allow for a profit.

ADUs - come February 2nd, ADUs are allowed BY RIGHT on any SF property in the state, owner occupied or not. This could be a huge opportunity for investors who can find cheap conversions (think: a SF with an existing in law apartment). Additionally, I'm hearing at meetups that this could extend to multi-fam under 4 units as well, although I haven't been able to confirm.

I work exclusively with smaller investors in the multi family space and would be happy to chat more about it. Feel free to connect if so - good luck!

@German Fernandez Love those options! If the commercial space isn't too disruptive, you shouldn't have an issue renting an ADU up there. As long as the city considers your property a true SF, you shouldn't have any issues getting this permitted (in theory, yet to see how some municipalities will handle this law). What a great find, though - a single family turned into basically three streams of income, assuming you get an ADU permitted!

Keep us updated how it goes, interested to hear.

I'd love to get more conversation going about the new MA ADU law going into effect Feb. 2nd. This provision, through the Affordable Homes Act, make ADUs legal BY RIGHT in any single family zoned property in the state. I'm actually hearing that it will be allowed for residential multi family as well, although haven't confirmed that. As long as the ADU is under 900 sq. ft. and meets the state building code, there will be no variance or special permit needed, so no ZBA or neighborhood meetings. Additionally, any existing restrictions at the town level (there are MANY) will be abolished, unless deemed "reasonable" by the state. Lastly, ADUs are allowed for NON owner occupied properties, opening this strategy up for investors who could convert a SF into two units.

That's just a brief summary, but I feel like there's not as much buzz and excitement around this law as there should be. If you look what ADUs have done for California, it seems like this can be a transformative trend here in MA. 

I think initially it makes sense to find properties that already have finished basements, in-law suites, etc. as converting those spaces to ADUs will be inexpensive and create a significant amount of rental income ($2,000/month+ in most areas close to the city). As ground-up ADU builds gain popularity I hope we see some affordable options, like modular, but from what I'm seeing now the ROI just wouldn't be there.

I'm trying to help spread the word about this law and compile as much information as possible so I can help investors capitalize on it. Would love to get some BP community feedback on what you all think of this, let me know!

@Dan H. Good points. I think new builds don't really work from an ROI standpoint, but if you can find properties that have easy ADU conversions then the value might be there.

I'm in MA and we just made ADUs legal by right, so I'm looking into the best ways to add value using them. A lot of our housing stock here has finished basements or in-law suites, so with something like that you can generate significant rental income for an inexpensive conversion.

Hi Myles,

I found myself managing about 20 rentals through my brokerage at one point. They were referrals and the business started to grow simply because I had a competent team that was responsive and looked out for the owners' best interests. I think there's a pretty low bar for competency in the management business because it's not glamorous and can be a grind. If you can come in and operate effectively I think you'll find success rather quickly due to that.

BTW - for a property management platform I would highly recommend Buildium. They're coincidentally based in Boston, too.

Good luck!

Thanks for putting this together Mike! I plan on being there.

Hi @Sathya Priya Sampathkumar! If you're just getting started, stay local. I see you're in the Boston area, so if you're looking for cash flowing markets I'd recommend Lowell, Fitchburg, Leominster, just to name a few. Basically, the further you get away from the city the more potential for cashflow, but you're also dealing with a different tenant base that may be tougher to manage. I'd also suggest self-managing your first property to maximize cash flow and learn by doing for any future investments.

From what I've heard, CA is very ADU friendly so check with your city on what's allowed. Great idea from @Henry T. to live in the ADU if you can and rent the house. If not, in CA you'd still get great rent on the ADU so I'd absolutely consider it.