All Forum Posts by: Melanie P.

Why?

Finding contractors is a battle that never ends. We do not pay anything other than materials we may have placed on the job site ourselves until work has begun then we generally make 4 payments the day work has started (as in some work is done) and then at continuing intervals until the project is complete and all permits/city inspections have cleared for release of final payment (which is sometimes a month or two after all work is completed).

More important is to understand what move-in expenses the HA covers and does not cover. Security deposits, pet fees and any administrative fees you charge are the tenant's personal responsibility. Once you have approved them, which involves doing your normal screening plus verifying their voucher is valid with their case worker plus perhaps a home visit if you're so inclined, you need to collect a holding agreement that covers the full sum of their charges PRIOR to ordering inspections from the HA. Many of these applicants do not even have their security deposit together and you don't want to make a bunch of nitpicky repairs to obtain approval only to learn the tenant cannot proceed or needs to pay their move-in fees in payments, no.

Congratulations. Make sure you're saving money every month toward CapEx repairs. You need a reserve fund for roof, appliances, plumbing issues, etc. Most units at that price point have a lot of deferred maintenance.

Congrats on your deal. When is the last time a lot of raw land traded in the same neighborhood as the proposed lot? Did that lot feature things yours won't? For example in old neighborhoods like that cleared lots will trade post-fire with sewer, power availability, addressing, etc. that a newly created lot won't have. 

Land developers do not provide financing for improving their land. If they had financing to improve the land and thought doing so was a profitable venture they would use their financing to hire a proven, reputable home builder to put up spec houses. They also don't take land they've invested a great deal of time and money developing and gamble it by placing it into a venture as you are describing. 

If you're interested in becoming a home builder and have relevant experience you should seek out an SBA loan, purchase a lot, build a house and see how you do. I don't see anyone taking the ride with you, especially on your first (or tenth) try.

Every transaction is a learning experience. I assume that you're living much better in the $500k home than you would be in one of the units in the four plex. But if that standard of living is acceptable to you, when you finish out the required year in your home you are free to move into a four-plex and try again.

No licensing is required in MA except perhaps a local city business license where your office is located. 

You should be using software to maintain your books and records: Buildium, Yardi and AppFolio are a few you can look into. 

Should maintain segregated accounts for income and funds held for others (Trust account) and funds to pay your expenses and profits (Operating account). 

You will have to send 1099 forms to your clients and vendors by January 31.

A successful business documents its policies and procedures for every task it performs, large and small, and keeps these policies updated regularly. 

I would start by contacting whomever signed the tax deed. Should be a name of a government official in the tax office. They sold you the property - you may just need them to amend their paperwork to reflect the correct language.

If you know what you own but are trying to split one purchase into two resales you are developing the property and would need to have surveys and plats drawn up and filed that reflect your plans.

What is the average length of stay? Vacation rental managers generally charge 20% of revenue, but no lease up fees, although you could charge an administrative fee to the tenant at the beginning of occupancy.