All Forum Posts by: Nick Intrieri

Hey all - Just seeing this thread......have some experience in AC with two Airbnbs. 

I wouldn't be as worried about crime if you stick the the North and South ends of the city. 

Just find a good property manager....that's the key with Airbnb, the $ is good but the turnover is alot of work. There is demand on weekends all year round and the summer the #'s are great. 

Hi all - 

I recently acquired some land on the Jersey shore and I'm trying to figure out the best way to finance the building of a vacation rental property. 

I've been looking at two options and trying to determine the best way to go:
1. Term-to-perm construction loans 
2. Cash through Outside Financing (partial from HELOC on my primary residence, other short term capital through investors, etc) then refinance into 30 year fixed

Seems to be some pros/cons to both options, #1 (Term-Perm construction loan) is cleaner since I wouldn't have to raise money from multiple sources and would eliminate having to refinance once the home is built.

The con of term/perm is I the rates are higher than a HELOC. Also, my brother (who is my partner in project) is an engineer who works in construction and we was going to try and save us some money along the way with various contractors. My sense from term-perm loan is that all costs/invoices need to be detailed prior to build with little to no room for negotiating cost savings as you go along.

Anyone have experience with construction loans that they can share with me or financing the building of a home? Would appreciate any insight. Thanks!

Nick 

Awesome, thanks Kurt! Can't make the meeting with the city tomorrow but I can make this. @John Errico

Awesome....I will be there!

Hi @Kurt Kwart are we still on for tomorrow? 

Nothing....the market is too hot...

Thanks all for the very detailed comments. I really appreciate it! Sounds like a trip to the zoning office is in order.....

@Edward Casano I haven't gotten that far yet but most likely would be financing unless I could round up some investors. Owner is ok with financing. 

@Ryan Goldfarb It's not a standard lot...16.67 X 100. Current structure doesn't even have 60% coverage. Surely - Let's chat about it at the next meet-up

Still think this deal is a long shot but it never hurts to learn something new. Will keep you guys posted, thanks again!!

Hi all, 

Looking for any & all help/advice on a potential deal in Jersey City Heights portion of New Jersey. I have an off market deal on the table for a Single Family property (although it's being used as a 2 family) in Jersey City Heights portion of NJ for $275K. 

While that's a pretty good deal for the area, especially for 2 family (JC Heights is blazing hot),  the condition of the interior is it rough shape. Two tenants there currently are not living in conditions I would be comfortable with in addition to the legality concerns. Major repairs would be needed, probably 100K worth plus the re-zoning issue, now the deal doesn't look as good. 

Still, even as a dump the property is in such a great location, I'm pretty sure it would go on the market for $300K maybe even $325K AS is. The taxes on it are nice and low. Market is still going up. Could I get the deal down to $250K? Maybe, but not much more, the owner is aware of what it will go for on market and almost certainly won't take less. 

That leaves me with the final option of buy for $275-$250K, tear down, re-zone to a 4 family (owner claims he checked with city and this could be done on his lot although obviously I'd double check that myself), and re-build as a brand new 4 family that could safely net $1800/unit if done as 3BDR/1BTH. And this comes the the heart of my question....

Anyone have experience with a buy, demolish, re-zone, and re-build in Hudson County? As a relatively new investor (only 1 unit to my name) I don't have a clue where to start, other than I realize this is a risky move and I would need an architect. 

Some really ballpark estimates I'd like to check, first with eye ball test from the very experienced BP Members :) 

Land Cost - 250K
Tear Down - 25K?
Rebuild to 4 Family - 250K?
Do these figures seem realistic? Assuming no underground oil tank....was told none there

If (and this is a huge IF) I could keep it under 550K all-in and make it a 4 family that would be a big win and in theory would cash flow. Realize lots of risk but return might be worth it. 

Not sure where to start on this one....any help, even from out of state would be greatly appreciated!! Thanks!!

@John Errico