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Happened to my Dad and Mom when they had a triple decker in Dorchester. Dad did all the remodeling and was taken to court for lead paint by a scumbag tenant that would not pay the rent. I believe they were backed up by city at the time - problem is no one inspected it - there was not a bit of lead paint in there. Judge threw that out, but hassle and expense of defending it for no reason. We eventually moved out and rented it for a while - until another tenant did the same thing as you experienced - burst the pipes on the third floor and just about ruined the place. They gave it to HUD. Big mistake as it probably is worth 500k now (30yrs later)
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