All Forum Posts by: Brett Baginski

Welcome to BP, Patrick!  Sounds like a great strategy to get started.  When I first started looking for an investment property, that was my plan as well, but I couldn't find any duplexes that worked for me.  I am from Tinton Falls and everything I saw to stay in Monmouth County was too expensive or just didn't make sense after running the numbers.  Best of luck!

After speaking with an interested section 8 renter, they said their voucher covers up to $2,000 rent and $200 in utilities.  This would cover the rent in full and majority of utilities.  She has no job, but husband has full time job in construction making $4,000 per month.  Her credit score is only 580, he does not have a credit score and is not a citizen, but has 10 years of job history.  Receives other government aid for disabled child.  She says no previous evictions and has contact information of last property manager where they lived for 4 years.  Willing to travel 2 hours to just to see the house.  Thoughts?

Lot of great information, thank you all. I will stick to the minimum requirements and vet out each individual as they come.

Thanks for the quick response Justin! I don’t have anything against section 8, I guess I just wasn’t ready for the first inquiry to ask about it.

So I can still require them to meet a 3x monthly income rule to the rent? The property is listed at $1,915 per month. I’m guessing someone in section 8 would not qualify under that requirement.

I recently listed my property for rent (first time), and one of the tenant inquiries asked if section 8 was accepted.  I read the laws in NJ and it sounds like I cannot flat out refuse to rent based on section 8.  Is the best response, "The property has not been approved for section 8."?  In NJ, if you have a tenant looking to rent that is section 8, are you required to have a section 8 inspection done?  

1. Narrow your criteria.  How much can you spend?  How many bedrooms in each unit?  Know your numbers so when a deal comes up, you can quickly analyze it to see if it works for you.  Being an investment property, you have to make sure the numbers are in your favor when you decide to leave.

2. Connect with an agent and ask to be set up on the MLS emails under your new criteria in the areas you are interested in living.

3.  Analyze every property that comes up.  When you find the one that works, contact your agent and set up a showing as soon as possible.  As long as you aren't wasting their time, you aren't being bothersome.  And narrowing your criteria and knowing your numbers will make sure no ones time is wasted.

Depends how liquid you need the money to be and your risk tolerance level. When I was saving for my first down payment over the course of years, I did something similar to you. Had a Roth IRA, some "safe" stocks, high interest savings, and a mutual fund.

Now though I do all my saving in the high interest savings account.  To me, it wasn't worth the risk of having spare money in investments, as the market could just as easily move down.  If you plan on using this cash within the next year, I don't see how investing will really benefit you.  Keep it simple.

I moved into my townhouse almost 3 years ago. When I first closed on the property, the HOA was $235 per month. I just got notice that in 2020 they will be going up again, to $280 per month. I would work this type of scenario into your numbers and see at what point the deal wouldn't make sense anymore. You may not be able to increase the rent to cover an HOA increase, and there is still the possibility of a one-time assessment charge. If I were to rent my property out, I would be around breakeven after budgeting for expenses, but this doesn't mean it can't work for you.

Would it be possible to go right to the parents and just have a normal conversation with them about it?  Mention that other tenants have complained about the odor and just restate it is against what is spelled out in the lease.  Seems like a lot of trouble to install security cameras for this, especially since it sounds like it isn't a criminal offense.  Depending on the parents, they may be grateful you address it with them instead of trying to catch their daughter and follow through with any kind of repercussions.

@Michael Ealy , my question would be:

How many units would you look for on your first apartment deal? Is a 10 unit easier than a 30+?