All Forum Posts by: Alex T.

@Roupnel Pierre I already own a triplex in Chelsea and considering buying more (if anyone is interested in partnering, let me know), the crime stories you hear about it are out of date. City started turning around back in the 90s, and a few years ago the last few kingpins in Bellingham Hill were arrested. Look at the actual crime maps and you'll quickly see that it's a lot safer than the "hot" East Boston market. Chelsea still feels slummy compared to other areas, however.

The real problem with Chelsea is the transportation situation, which should be remedied by the silver line and the rerouting of 112 bus that Everett plans to do. Sandwiched between the upcoming luxury casino in Everett and East Boston I'm pretty confident that Chelsea will do well long-term. It's also the only area this close to downtown where you can buy a property that meets 1% rule (except maybe Fields Corner, which I would definitely stay away from).

I completely agree with @Ann Bellamy. I've been in a very similar situation to your own, anxious to jump into investing, but also trying to use it as an opportunity to solve personal/family wants/needs. The result is that I ended up purchasing a property that I wish I hadn't bought. Now I'm considering selling it at a loss. More likely than not, whatever you purchase by considering both family and investing at once will be the worst of both worlds, not the best of them.

My rental property is located in a city with strict rules about trash pickup (Chelsea, MA). Trash needs to be in bins with lids closed or in orange trash bags purchased from the city. Residents are not allowed to just put a microwave on a sidewalk. Likewise, no trash is allowed until 24 hours prior to pickup.

In the past, tenants have violated this law, resulting in fines for previous landlord. They are aware of this law, however. Given that Massachusetts is a very tenant-friendly state, what are my options? Can I pass the fine on to the tenant if I can document that it resulted from their wrong-doing? Can I evict the tenant for repeated violations? How have other investors in Boston handled this?

Thanks

@Ashley Owens welcome to the forums. I just got a 3-family in Chelsea as well, it's one of the few areas near Boston where rent/price ratio still makes sense.

There are some companies that allow HELOCs on investment properties. Likewise, a primary residence with a HELOC on it can become an investment property in the eyes of IRS if the owner did not reside in it for long enough. So what happens if part of the equity is already invested into another property (i.e. cash purchase) at the time of the sale? Can 1031 be rolled into a previous purchase? Would the HELOC portion be ineligible for 1031? Would the owner be required to pay off the HELOC prior to the sale?

Thanks for clarifying that @Ann Bellamy, I didn't realize that the documents depended on the number of individual investors rather than the project scope itself.

I'm no expert, but I think the "operating agreement" style of document Matt describes is only necessary for a syndicated deal (tends to be larger apartment complex investments where you would share rents and other sources of income). What investors I've worked in the past (here in Boston) have done for simple condo conversions and rehabs is a promissory note. I've had no problems with it so far, just needed to submit a W-9 form along with it for tax purposes.

I have a rotten sill plate on one side of the house as a result of years of water damage from rain and bathroom leaks. It's pretty bad, but the foundation (fieldstone) itself is intact. The house is in Chelsea, MA. Does anyone know a contractor/carpenter who can help me out? The house is a typical triple-decker and the rot has caused a slope inside (not visible outside), I don't care about the slope, I just want to fix the structure to prevent further damage.

Thanks

I see, thanks. So when I hear landlords at local MA meetups claim that security deposits are a bad a idea, they're just being lazy about the upfront work to set up an escrow account and do a proper walk-through with the tenant? Do you guys recommend security deposits in MA?

Thanks

@Douglas Snook I have the original leases, the fridges were provided by the landlord, no security deposits, I am worried as well about the legacy tenants but so far they seem friendly. Bottom floor tenant has been with the property for at least 4 years, although there are things I'll need to address with the tenants eventually (pets, storage, in-unit washers), I don't want to come in with guns blazing.