Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
×
Try Pro Features for Free
Start your 7 day free trial. Pick markets, find deals, analyze and manage properties.
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Eric P.

Eric P. has started 44 posts and replied 154 times.

Post: How much to put down on rental properties?

Eric P.Posted
  • South Jersey, NJ
  • Posts 154
  • Votes 50

Anyone know if 80/10/10 piggyback mortgages are doable for rental property?  I'll likely already have an 80/10/10 this year for my primary residence.  Its not easy coming up with a Down payment for your primary place in NJ and have enough in the bank for emergencies and trying to come up with another down payment.  

Post: What to do with beautiful in-law suite?

Eric P.Posted
  • South Jersey, NJ
  • Posts 154
  • Votes 50

What about corporate housing short term

Post: Home price vs. Property tax

Eric P.Posted
  • South Jersey, NJ
  • Posts 154
  • Votes 50

I'm all for saving money for passive income and building a better life for one's self.  But at the same time I'd like to enjoy some of my money now as well, not always looking toward tomorrow.  Now if the bank approved me for $600k I'm not going to run out and look for a $599k home, but I'm not going to run out looking for a $200k home either.  Every dollar you make, above what you need, is what you make of it.  Would I like to be making $25,000 a month passive income?  OF COURSE!.. but I bet I'd be just as happy if not more so, if I had $15,000 a month passive income and actually enjoyed some of my money throughout my life instead of always putting it toward making more of it.  

Post: Home price vs. Property tax

Eric P.Posted
  • South Jersey, NJ
  • Posts 154
  • Votes 50
Originally posted by @Ned Carey:

It is possible the $300K house is over assessed and you may be able to appeal and get them lowered. It could be that the taxes in town 1 are a higher rate. high tax rates lower values  for the reason you are seeing here. 

PS: if you want to build REAL Wealth, don't buy the most expensive house you can afford, buy the lease expensive house you can get buy with. Use the extra money to invest.

I totally agree with this but in NJ $300k to $400k is the standard starting price for a nice 3+ bedroom home in a safe area.  Like I said we've been comfortable with $2,400 but according to "Home affordability calculator" we could handle a home over $550k which is just insane to us.  The only debts we currently have are $400 worth of cars with 2% interest and $29K in student loans with 5.9% interest.  I've been investing in the stockmarket for years, I'm 30 now and would like to have 5-10 rental properties by 40, this should allow that.  

Post: Home price vs. Property tax

Eric P.Posted
  • South Jersey, NJ
  • Posts 154
  • Votes 50

I know these towns well, I grew up in one (high taxes) and the other town is right next to it.  I'd of course double check on these things, but just according to Zillow showing all tax data it looks right.  Even if this was all hypothetical wouldn't the higher priced home be better.  

Post: Home price vs. Property tax

Eric P.Posted
  • South Jersey, NJ
  • Posts 154
  • Votes 50

My wife and I are mainly looking at 2 towns for our first primary home purchase.  We're used to renting in North Jersey at $2,400 a month comfortably so that's our budget.   In town #1 we could buy a house for $300k but taxes are about $10k.. in town #2 we could buy a house for $400k and taxes are about $5k.   We much prefer the house in town #2.  The monthly budget comes in about the same around $2,400 for either home.  

I'm always reading about "home affordability" and the $400k number scares me a little (gross about $155k w/ very low debt), but if the $400k place and the $300k place are costing me the same each month, wouldn't I be better off purchasing the $400k place as more money would actually be going into equity?  I just want to make sure I'm not overlooking something stupid.

Post: What to do with beautiful in-law suite?

Eric P.Posted
  • South Jersey, NJ
  • Posts 154
  • Votes 50

Oh I completely agree.  Its a nice large home so guests would have plenty of room in the main house.  And using it as an inlaw suite for the parents is probably a good 15 years away.  So I'm just looking for ideas on the short term if we were to go this route.  exchange student actually sounds like a really good idea.  

Post: What to do with beautiful in-law suite?

Eric P.Posted
  • South Jersey, NJ
  • Posts 154
  • Votes 50

Also the more I think about it I'd really only be comfortable renting to like a little old woman or something as its attached to the house and you don't want a crazy loud tenant or anything.  So maybe one of the other ideas would be best?  This is far from a set in stone deal, just trying to get educated.

Post: What to do with beautiful in-law suite?

Eric P.Posted
  • South Jersey, NJ
  • Posts 154
  • Votes 50

My wife and I are finally ready for a first home purchase.  One home we saw is 4,000sq/ft beautiful Victorian style on a few acres with a 900sq/ft in-law suit with all new appliances, hardwood and private entrance.  A similar apartment in this area would rent for about $1,100

So I'm wondering if this can be rented out?  I'm pretty sure in NJ there are laws against renting an in-law suite.  Could this be made into a duplex, maybe rent as a hair studio or something, lease it out for storage, get a "roommate", turn it into a home office for tax deduction, or just rent it to a friend or family member for a cash deal?

We could afford the home without renting, just wouldn't want to waste the space.

Post: Not enough money for my area?

Eric P.Posted
  • South Jersey, NJ
  • Posts 154
  • Votes 50

I also worked since 14, but I moved out on my own pretty early, wish I stayed at home and banked more money.  Add on a wedding and some debt pay down the last 2 years its amazing I even have that much in the bank.  Sometimes it feels like I'll never get ahead, but thats why we're getting into this realestate biz right?  I've got ton of information off this site already, I think you'll find all the answers you need.  

I know a guy that bought a place for about $200k right after college.  He got two roommates and hasn't had to pay a dime in living expenses as a result.  They just keep paying down his mortgage, now if it wasn't for all his trips to Vegas He'd prob have a ton of $.  I think your first step is to see what you qualify for, I think with $25k to put down at 21 years old you might surprise yourself.  Maybe you can get a dump in a nice area you can rehab while you live there and turn a bigger profit once you decide to move out.