All Forum Posts by: Mike St. Jean

Quote from @Greg Scott:

Your loan will almost certainly have a due-on-sale clause. If you ask the bank about it, you will draw attention to your situation. I also understand FHA has language in their loan docs that require the borrow to be a human, not an LLC.

I've heard lawyers argue that if the loan is in your name and the deed is in an LLC, if there was a big lawsuit, the opposing counsel could argue that you have pierced the corporate veil because you have not treated the LLC like a separate entity. In that case, the judge might conclude your LLC is invalid, providing you no protection, which is the worst case scenario as a landlord.

On another note, if you put the property in the LLC and later want to do a cash-out refi with an agency loan, you would have to quit-claim it back into your name and then wait 12 months to do the refi.

Alternately, you could beef up your insurance.  When I had lots of SF rentals, I used to have $500K liability coverage for each property plus a $2M umbrella.  Seemed to me that covered 99.9999% of possible issues.

 Thank you Greg for your comment, this is great advice! I'll look into liability coverage. 

I had my FHA loan written under my name and my girlfriend's name. I want to transfer the title to my MA LLC before renters are in. MA LLC is owned by our Wyoming holding company.

I've been told to quit claim the deed, but after some research I want to avoid that as it might indicate issues with the title. Perhaps warranty deed?

My mortgage company will be selling the loan, but I believe I need to ask them if there's a due-on-sale clause first. In the event there is, is anyone aware of a work around where I can get the title transferred to my LLC? TIA!

I purchased an existing 2 family in an MBTA community under the 3A Zoning Act. The zone I'm in allows for me to file for a special permit to convert to a 3 family. (Finishing out an unfinished basement)

The town has a brand new building commissioner I met with. He told me that under the IBC, I'd be required to add sprinklers throughout the whole house. (I'd likely need to displace the tenants in the existing 2 units)

He said I could file an appeal with the state to just add the necessary fire suppression systems to the basement since the existing 2-family just had its smoke alarm system re-wired. 

I'm trying to do the research and interpret the code on my own, but I'm getting conflicting feedback on the sprinkler issue. I'm wondering if anyone knows of a good architect in Swampscott who understands the current code and zoning and can advise accordingly before I spend a bunch of money on sprinkler systems. TIA

Quote from @Warren Lizo:

Water-tight LVP is a great product. Yiu get what you pay for in terms of durability. While not all the rage -yet- carpet tiles are fantastic in many applications. You can replace just one tile at a time. However there's no padding underneath  

 Thanks Warren! I've been installing LVP and happy with my choice. 

Quote from @Alecia Loveless:

@Mike St. Jean We’ve found LVP holds up better than carpeting.

If you have extra money you might consider wood flooring on a luxury type unit like you’re describing.

I’ve not installed any wood floors but if we discover them under anything else we always refinish them for the upscale look.

Thanks Alecia! I went with LVP

Quote from @George Post:

Hey man — just wanted to share some advice. I’d definitely go with LVP (luxury vinyl plank) if you can. I recommend reaching out to Lowe’s — they’ll send someone out to quote it for you, and the team can also confirm if LVP will work for your specific flooring.

Also, definitely get the Lowe’s for Pros credit card. Anything over $1,500 gets sent to the quote desk, and I’ve scored some awesome deals through that — like 30% off fencing.

Quick heads-up: I’ve got a three-family in Hull by Nantasket Beach, and when the Lowe’s crew came out to install LVP, they said it wouldn’t work due to the condition of the flooring. I ended up having to use carpet. So it’s definitely worth having them assess the space first.

Happy to connect as well, when your done with the work to pull some capital out ;)!

Overall though, LVP is a solid choice. Good luck!

Solid advice, thanks man! I've been busy prepping the sub floor and laying down the LVP. It's been a little more work than what I was hoping for doing it myself on weekends and after work, but I'm almost done and I'm happy with how its coming out. I'll reach out!

Quote from @Matthew Crivelli:

What ever you choose, just stay away from carpeting. It gets destroyed easily. My Vote - LVP or wood floors. 

 Thanks Matt!

I've just closed on my first property that is a 2 family with an ocean view in the North Shore. I'll be requesting a special permit from the town to work to convert it to a 3-family by finishing and living in the basement for a year. My question is around materials. The 3rd floor is an awesome lofted space with large open floor concept and lofted ceiling with exposed beams and a great view of the ocean and Boston skyline. This is part of the 3 bed 2 bath unit I'll be renting out, hoping to get at least $4k/month for. I'm trying to discern which type of flooring to put down. (Previous owners completely stripped the carpet leaving a clean slate) The property was built in 1910 and will have a lead paint form with the lease. (not sure a young family would want to rent or not) Carpet would be cheap and convenient to rip up after a lease ends and wouldn't need to worry about kids ruining the floor, but I'm not sure if I'll be missing out on rental income if I don't go with something a little nicer. What flooring materials have proved to maximize rental value without overspending/running into law of diminishing return? We'd probably also take this into consideration for flooring in the basement after we move out in the future and rent that too.