All Forum Posts by: Austin Keelen

We have a home under contract in NJ and the inspection revealed that the home has a modified cesspool that needs to be replaced. Sadly the home is not close enough to a sewage line for that option so a new Septic Tank is required. 

We sent the requirement as well as a list of other repairs back to the seller (who is a lawyer acting as the executor of an estate) and they came back with taking 15k off the price if we accepted it as is. 

From my research it appears as though 15k may just barely cover the cost of the new system because the new system first needs to be designed by an engineer and then it can be priced. 

Also, I don't want to throw 15k straight into the house before I can even live in it, we have that money but it would drain me almost completely after the down payment.

Has anyone figured out a way to finance a septic system back into the mortgage some how? Or have the seller pay for it some way? 

Any help would be greatly appreciated, this home is stressing me out and we don't even own it yet.

Hey Everyone,

So I've been searching the forums and google for a solid answer but I can't seem to find one. My wife and I will be buying land with an existing home on it to knock down and build a new one.
I'm wondering how the new property tax will be calculated once the construction is done. Will it be a sqft thing? The current house (if you can call it that) is 2600sqft and the taxes are around $8700.

Everyone, thank you so much for your responses. I had a feeling it wasn't that easy but had no idea of those type of repercussions. Mike Cumbie I knew of the 60 day requirement but I'll look into seeing if I can get an extension if I let them know I'll be occupying it on a very specific date.

We want to purchase a duplex with my VA loan, which requires you to move in 60 days after closing. Our problem is that both units are currently rented and the next lease to end is March 1st, putting us way past the 60 day mark.

Out real estate agent suggested that we get a P.O box in the neighborhood and have the water bill sent there to "prove" our primary residency. Now we will eventually be moving in, but it will be 180 days after closing not 60. 

This seems kind of sketchy to me and I'm not sure how comfortable I am with doing it. Does anyone know of any fall back that could happen from doing something like this?

We've located a great Duplex that the seller owns free and clear, so I was going to put owner financing on the table. 

I was just curious about what the benefits of doing Owner Financing and then refinancing with a bank later Vs. just getting a traditional loan from a bank the 1st?

What exactly is the difference between refi and just getting a traditional loan?

Thanks for any input.

@Keith Marks - If you come across any Multi-families in central NJ that will cash flow, please let me know. 

@Chris Mason,

Thanks I'll look into that.

So we found a great deal for our 1st duplex. The current owner just rented the back unit for a year and told us the 1st unit is month to month. We're using the VA backed loan so it requires this to be our primary residence. We haven't made and offer yet but the current owner was nice enough to send us the current lease for the front house, we read it over and it appears as though it's a 12 month lease ending next February. This is an issue because the VA requires you to move in 60 days after you close (certain circumstances allow for longer, such as retirement from the military, change of station, improvements on the home etc.). Closing will take 30 days and then we have 60 after that but it still leaves us about 5 months short of the tenants current lease.

Has anyone gotten an waiver from the VA for a circumstance like this? I'm not sure if they'll like me asking for an 5 month extension to wait for a lease to be up.

Estimating the exact rent in particular areas of NJ has been challenging for me. I've been using rent-o-meter, craigslist, and padmapper to get a general idea but in the more rural areas with not many comps its been difficult. Also since I'm new, I don't really have the seasoned eye for particular areas, whether wood floors mean I can charge more, how much and additional bathroom/bedroom adds the rent etc. 

So while I'm still learning these things I've been giving myself an extra buffer zone when it comes to cash flow. Ideally (since I'm putting down $0 since its a VA backed loan) I'm shooting for $200 cash flow after we move out (house hacking to start), but since I may be off on the rent I can get, I'm only taking a serious look at properties that cash flow for $400+, so if I'm off by $100 on each unit, I won't be hurt.

Does anyone else give themselves a little wiggle room when they run the numbers? Just in case you're a little off?

Hey Raphael,

I use a title company that's been in business for over 15 years and cover all of NJ. PM me and I'll send you their info.