All Forum Posts by: Daniel Gonzalez

@Elizabeth L. there are some pros to FSBO so it might be worth trying it. In today's market/digital age you could probably sell it pretty fast on your own. It does depend on your reason for selling it on your own and what your next move is.

@Shivam Patel It's frowned upon since HUD doesn't want investors gobbling properties up with that program. If you were to go from a multi to a single it may work since underwriting views that transaction differently.

To use FHA again on another multi could be very tough. I personally explored that option and was getting a lot of pushback. Most lenders said I needed to wait 2 years minimum and some even suggested refinancing the primary home to a different loan to show it is truly just an investment. It gets complicated for sure.

@Julia Sung Do you plan to live in the property or use it strictly as an investment? 

Your 500k budget is pretty healthy, you have enough for downpayment and reno if needed. There are many decent SFRs that you can buy at that price point. If you plan to live there you could have roommates and cut down your living expenses while cash flowing. You could get a multi but can be tough to cash flow now in desirable areas such as Morristown or Jersey City. You could do well in an owner-occupied triplex. you'll be able to get in at 3.5% FHA which isn't a bad way to start.

If you plan to live in the property, spend a Saturday and Sunday driving around areas that interest you. From there you can see what inventory is available in that town and neighboring towns. 

Good luck

@Joseph Matarazzo Hi Joseph. If you plan to owner occupy the next property it'll be 15% for a 2 family and 25% for a three or four-family. this is all for conventional Fannie and Freddie type loans. The market is hot for multis right now. Many that I have seen don't make a ton of sense at the prices they are going for. 

If you plan to move into the new place and make it your primary you can get away with the percentages above but if you strictly want to use it as an investment you're looking at 20-25% down for 2-4 family properties. Hope this helps. 

@Michael A Moore Jr Glad they responded and definitely hold your ground. Many contractors and subs I deal with on a daily basis will bully you if you let them. Smart move on the late fee if losing money doesn't motivate them I don't know what will.

Good luck with the rest of your reno and congrats on the baby.

@Michael A Moore Jr Sorry to hear about your issue with those guys. The first question is: did you sign a contract? Do you have anything in writing holding them accountable? 2nd are these actually licensed pros or just two handymen? Given how unprofessional they are, who is to trust their construction is up to code and won't fail. 3rd, how much is left to do? It seems they just need to tile, so I'm guessing all the roughing is done. 

If you have nothing in writing there shouldn't be an issue firing them. Tell them they are being fired for not showing up and falling behind on their schedule. Unfortunately hiring a new contractor to finish up might be more expensive because they might want to start from scratch. Very few people will want to guarantee anything over someone else's work. If you had permits pulled and an inspection then you can put a new contractor at ease by mentioning that. 

With regards to the debris just toss it. The tools I would return to them and document what's there so they can't say you stole something or threw it out. Good luck. 

@Cassandra Alessio welcome to BP. What part of jersey? 

@Ricky Ponting I've been looking for properties in JC. I'm open to talking tomorrow. Feel free to send a PM. 

@Luis Savery I totally agree on having a better payment system. Personally, I'm not a fan of just taking cash, but when I spoke to the tenants they were very apprehensive about opening a bank account so they could write a check or wire the money. I looked into services such as pay near me to have the money wired over from a 711 or CVS. There's a cost associated and I'm currently analyzing if it's worth passing that cost to the tenants or just having my family pay it for the convenience of not needing to go and pick up the rent. 

Congrats on closing. Lincoln Park has changed a lot over the years, it's a desirable area for sure. Is it a multi? 

@Luis Savery there are a few things that come to mind. Since the investor is self-managing they should take into account the parking situation in Hudson county (it's tough to find a spot), many tenants in that area pay in cash, the language barrier (its predominantly Hispanic communities throughout Hudson county), real high taxes eat into cash flow, and rent control. 

Out of everything I mentioned, the parking might sound the strangest but imagine trying to do a repair and it takes an hour to find parking, that's a time cost to the investor. 

I've lived in Hudson County for many years and my family has a few multis there as well and these are some of the things we encounter. I'd love to hear what other investors' thoughts/experiences are.