All Forum Posts by: AL-Teef Jones

Hello BP,

I have a question, when it comes to strategy for house hacking a multi-family in New Jeresy. I was discussing with one investor where they advise me:

 "if you're going to house hack and occupy a unit its best that the tenant does not know that you're the landlord. this avoids receiving the sob stories for late payments, getting wrapped up in possible tenants drama, and you can access the tenants behavior w/out them putting on a front because the landlords around." 

I do see some of the advantages of this strategy but originally I was fine with my tenants knowing that I'm the landlord because I'm confident that I can and will screen and vet the applicants well.

What do you guys think of this strategy? Can you efficiently screen and vet a potential tenant while still living in a unit covertly without them even knowing you're the landlord? 

if you don't mind me asking... what area of Jersey is this house? How'd you go about tenant screening in the beginning?

Hello welcome to BP!

I'm a newbie myself. Your plan sounds like a sweet plan you have brewing.

@

I feel really foolish for asking this question but how would I determine yield after expense?

@Jack B.

Yes, I've been dreading the closing cost because there no way to assess it to, my knowledge.

 Initially I was figuring the cost to be an extra 5k maybe. Up to this point I never would have thought closing cost would equate to really a down payment.

Jorge Borges

My partner went to see the house it house

Its 3 bedroom and 1 bathroom per unit.

@Nick Rutkowski

I don't consider it a red flag because I do have confidence in the quality of rehab work he's putting on the house.

its just that the average list price in my market is $250K to my knowledge so to hear $365K is a hard pill to swallow.

Hello BP Members,

I am currently in a particular folk in the road towards my first property.

I have one property that a REI is offering me, its a 3-family in Newark, NJ he's currently rehabbing the place now. House is in an area little rough around the edges and the house is right off of a major highway.

He's asking for $365K on the property, with "sellers concession" on the closing close .

I under the investor wants his return on value after rehabbing. He's levering the "sellers concession" saying the average closing cost is $10k plus but I'm not sure about that. Its kind of like the "sellers concession" is rolled into the total value of the house anyway.

 I just feel the price point is well over market value for the city of Newark NJ even if it'll be a turn key 3-Family. its to the point where I'm partnering up to satisfy lender requirement. I like to project my numbers from the standpoint of "Can I afford this house if it goes unoccupied for extended amount of time?"  With that in consideration I'm afraid the numbers are to close to the bone. Plus also at $365K I feel there's no room for equity.

My realtor just showed me another 3-Family in the same type of area that is currently listing under $100K I'm going to look at the house this weekend. From what I've seen so from it looks like this house would required some rehabbing.

If anyone could give my any insight or advise on this situation I'd absolutely appreciate it! this is going to be my first properly and I don't wanted to handcuff myself by make an uniformed decision.

any advise would be appreciated.

Great! I'll see you there then.

Thank-you!

Hello Stephen,

My name is AJ.

I want to go to this but I get off work in Pennington at 7pm so I won't be there until 7:30pm. I wanted to ask you if that would be to late? Will the event still be going on?