All Forum Posts by: Allan Szlafrok

@Sharissa P. After you’ve added all the expenses into your calculations if the the rental unit isn’t making it less expensive to own than it would be to rent a similar unit then it’s not really worth your while. Knowing the NJ market like I do I have a feeling like you’d be better off renting than owning in this instance but I could be wrong.

@Simon Obas In a house hacking situation as long as the rental income is reducing your own personal living expenses to less than what it would cost you to rent (after all expenses such as mortgages, taxes, utilities, etc.) and you have a reasonable expectation of getting some appreciation for as long as you are living there then I’d say it’s not a bad idea if the property is somewhere you want a live and fits your lifestyle. For non owner occupied properties it’s not a good idea to invest in negative cash flow properties even in hot markets because you never know when the market is going to turn.

@Michael Bettencourt I always appeal my property taxes both for my personal and my investment properties. You can hire a lawyer who, aside for filing fees, will only charge you if they get your taxes reduced. I’ll admit you’re less likely to get a reduction as prices are at or near their highs in most areas but there is very little downside in trying. Also if they feel like you have a strong case they may ask you to pay for an appraisal but again it’s often worth doing. I’d say I win 90% of my appeals so it’s worth a shot.

@Anatole Doak I live in NY and have refinanced several NJ properties using local banks at favorable rates. The properties are held in an LLC. I can send you my points of contact at these banks if you like.

@Efraim L. There are some really strong markets you should look at across the river in NJ. Jersey City, Bayonne, and the rest of Hudson County have seen tremendous growth in prices and new development over the last few years. Same for Essex county. Before you consider investing somewhere where it’s going to be harder to manage your properties take a look at these areas and see if you can make them work. I will say that these markets are extremely competitive but if you can make the numbers work closer to where you live that’s a good situation.

@Thomas Welch Jersey city has an easy commute to the city and there is no rent control on duplexes or triplexes I believe. Very affordable versus NYC. A lot of areas have seen explosive price growth for that exact reason.

@Troy Leinster As I understand it, the ordinance is aimed at literally all listings with a possible carve out for owner occupants like yourself although I’m not sure if you have to live in the building as you plan to or in the unit itself as in room sharing. A lot of people bought houses or rented apartments with the express intention of Airbnb-ing them and if this passes those guys are gonna have shut down completely I imagine. The draft of the ordinance is expected to be ready June 5th with the first hearing on June 12th so stay tuned. Or better yet attend the meetings if you want to and talk to some of the people who are doing Airbnb and fighting the ordinance.

@Troy Leinster Jersey City is currently working on an ordinance that will effectively ban Airbnb in the city. It’s likely to pass. I’m following this closely because I’m on a group chat with Airbnb hosts who are fighting it(I’m not currently a host but may want to be in the future) They are probably gonna lose. My recommendation is to follow what’s going on (they have a Facebook page with updates) but I wouldn’t go with Airbnb as it’s likely to be outlawed or restricted in a way that makes it impossible to use a unit as a full time Airbnb. It’s possible they will carve out exceptions for people like you living in the property so do yourself a favorand keep up with what’s going on with the ordinance. The council is drafting the ordinance as we speak and there should be some clarity in June. All that being said I’m a landlord in JC and doing quite well so far so I recommend that route. Properties under 4 units I believe aren’t subject to rent control so you can get good rents and increase them. Demand is extremely high in the area and you will have your pick of tenants. If you have a good product you will have tenants within a week of posting the unit.

@Alyssa K. So i would just say no to partials and tack on late fees when they are late. Whether you choose to collect them is simply a business decision based on your relationship with the tenant and how understanding you are for the reason for the late payment. Unless they have a great excuse or you risk losing them you should probably collect the fees. Don't want to be seen as a pushover because that snowballs quickly with tenants.

@Ahmad Nassar It's 2019 and banks aren't giving away properties like they used to. An REO is no longer a guaranty of a good deal. Just make an offer that you are comfortable with. If you can make a cash offer or have a line of credit from a hard money lender or other institution you will have an edge over a lot of the competition.