All Forum Posts by: Rory Gill

Hi Mark, congrats on the license!  I share some of the reservations about going all-in on rentals to start.  The headache-per-dollar ratio isn't great.  The turnaround time to your first payday isn't that much faster in rentals either.

That being said, rental transactions could be a valuable part of a comprehensive business growth plan.  Ironically, though, it's better for the long term.  For example, tenant clients today can become buyer clients tomorrow.

If I were you, I would work through a plan that involves both rentals and sales.  Because the payoff can come much later, I would be hesitant to quit another job right away.

As the landlord in Massachusetts, you should be prepared to absorb the costs for background and credit checks.  Here are some tips, though, to avoid paying for limitless reports for all applicants:

- Pre-screen applicants manually.  If you are aware of their recent addresses in MA, visit masscourts.org and search for the tenants in each district court, superior court, and housing court where they've lived.  Any eviction or other court case should be revealed in the search.  While this may be time consuming, past litigation against landlords (in my opinion) is a more serious concern than general bad credit.

- Call references before ordering the reports.  A negative reference could take that applicant out of the running before you have expended money on him/her.

- Use a report only to confirm an application you are otherwise ready to accept (as opposed to using reports to rank order applicants).  As a best practice, articulate in writing in advance what disqualifying information would be.  Think of all reports as pass/fail as opposed to graded.

I would take both approaches.  First, the power of the condo association to enforce its rules as outlined in the master deed and declaration of trust. If you have the cooperation of the third unit owner, Massachusetts law gives the condo association some powerful rights.  Second, report this to the Inspectional Services Department.  They can and will enforce building codes and permitting requirements.  I would note, however, that selling or refinancing the unit could be difficult while there are legal actions ongoing.  Best of luck with this - it can be fixed.

Welcome, Bryan.  I second Enis' recommendation about the meetups.  They're a great resource and source of ideas.  When it comes time to rent, Charlie's landlord-tenant education recommendations are also worth checking out.

If you're in the immediate Boston area, I'm a fan of rental markets just beyond the city's gravity.  Pick a few of the smaller cities, research their markets, and run some numbers as practice.

You also need to serve the Notice to Quit on the housing authority.  Take a close look at the housing authority's lease agreement to see if a greater notice period is required.  Skipping these steps or getting it wrong will send you back to the beginning.

Will,

The comments above are right, and I wish I could give better news.  However, is there a reason why the landlord can't sell the house a few months earlier?

Hi Chris,

How straightforward the process would be depends on whether you're in Cambridge or Somerville. Somerville extends greater protections to tenants and has an approval process. Cambridge follows the state law, which is relatively less arduous.

In terms of costs, a Cambridge conversion would be around $7000. In Somerville, John's numbers above seem correct.

Good luck with your project! It's an interesting area to be working.

Rory

Hi Matthew,

You would need to resolve the building/housing code violations.  If you don't you risk prosecution by the municipal building department.  Even if they don't come after you, any tenants could use the violations against you in any legal action (and they do).  If you try to sell it, you'll drastically reduce the number of potential buyers.  That being said, a property with code violations can be a good investment with an adequate plan (and budget).

After reading a ton of BP content and listening to many podcasts, I want to introduce myself to the BP community. I own and manage a real estate law firm (UrbanVillage Legal) in Southie, and I am working to become a local investor as well.

As an attorney, I work with buyers, sellers, investors, landlords, and HOAs. That means: I do transactions, closings, evictions, dispute resolution, and real estate litigation. I also counsel and represent several condo associations.

I’m here, though, to learn from everybody’s diverse experiences and backgrounds. As a real estate attorney, I bring my own – but incomplete – ideas on real estate investing. So, I’m looking forward to seeing the creative solutions and perspectives of investors who arrived at real estate from a different direction – as contractors, real estate agents, property managers, or any other way.

Currently, I am seeking multifamily buy-and-hold deals or condo conversion flips in Massachusetts’ smaller cities that surround Boston – Lowell, Salem, etc.

Thanks!