All Forum Posts by: Chris Masons

Move in to 1 unit to get eh benefit of a smaller down payment with plans to stay there for a year... See how things so, get to know your tenants and train them to take good care of your building. With you occupying it you can keep a close eye on things and the property will be much easier to manage...

If you absolutely hate it and think you need to move out, you can always move out and rent your unit out.

good luck,

Chris

Hi Mark,

Welcome! There is a wealth of info here and I only wish this place existed when I Was cutting my teeth getting into multi family investing New Jersey!!  :)

To better answer your question I think the answer depends a bit on what you want and your comfort zone, also the rate of return you are willing to accept....

I have been investing in Union county and Somerset county. I use to live in Union county and began acquiring properties that were in my backyard so to speak as I was very familiar with the market and what I can rent these properties for. The other thing which is huge to me as I self manage, is being in close proximity of my properties as the thought of managing something far away does not sit well with me and I prefer to self manage VS give to a management company.....

NJ is a tougher state by default to invest in and generate good returns due to very high taxes and high price points on properties but along with this comes fantastic rental income if you buy the right property and buy it at the right price.....

Don't let that discourage you it definitely can be done. I have a portfolio of multi families, single families and condos all of which produce great cash on cash returns.

Where do you live?  Do you know the market in your  immediate general area? When I first started out I bought a Mother/Daughter - very similar to a 2 family and lived in 1 unit and rented out the 2nd unit... My tenant paid 3/4 of my mortgage and I thought I was a 22 year old genius!!! lol  This allowed me to bank a fair amount of cash and but something else and I was off to the races!!

(EDIT) Just saw you were from Teaneck, that is Bergan county right? my mom has family up that way, nice area!! 

regards,

Chris

Hi  Adam,

I am a lifelong resident and investor in NJ - Union county and Somerset county. NJ is tenant friendly but more importantly wherever you invest you need to know the law and what you can and cannot do. I would definitely not base my decision on where to invest on which state has which laws Etc....

I could have invested anywhere I choose when I started out and the two biggest drivers for me was being close to my rentals and knowledge of the local market. Having these two variables in my favor I think helped me tremendously in the early years when I was first getting started. I Was pretty young very early 20s when I bought my first rental..  I have since gained a boatload of knowledge and experience by being a Landlord and learning how to deal with tenants, properties, and all that it entails.

good luck!

Chris

Can't really add to much for than what's already been said.... Been a residential Landlord for 21 years (I'm 44 now) so I have seen and been through a lot as a Landlord...

few quickies

Talk is cheap - always put it in writing and ask for proof and or verification and watch how fast the story often changes

Nobody and I mean NOBODY will look after and take care of your property better than you will! Not saying property Managers are bad or there is no place for them, I am just saying YOU have the best interests in your property above ANYONE else

Make it a priority to always interview multiple prospective tenants, never go with the first one, always have a pool to choose from.... And your gut instinct is a trust worthy source use it and listen to it!!!!

Don't ignore small problems as they will usually turn into much bigger problems and you will wish you took care of it when it was a small problem.

Treat your tenants well, at the end of the day they are buying you a building!!!

Above all, enjoy what you do, take pride in your business and properties, and most important don't lose money!!!!!

Chris

@Daphne Barber

Hi Neighbor! Yes, most of my investments are in Union County, I also have some holdings in Somerset County..

IF you need any pointers or tips feel free to reach out.. I tend to follow the market pretty closely in Union County!

Good luck!!

Chris

One more thought.... I reread your original post and see that you are being advised to move your Traditional IRA into a Roth to be used for notes... I cannot comment on if this will generate income for you but I do want to point out that this is a taxable event and you will be taxed on the conversion...

I believe and don't quote me the amount converted is added to your yearly income and taxed that way. This can also raise your tax bracket for that specific year....

Whomever suggested this move should have at LEAST brought this up to you and made you aware as again this is definitely a taxable event with tax consequences and potentially could cost you a good chunk of change!

Maybe a CPA could chime in..

 I work for a accounting firm in NYC but am a Sys Admin not an accountant!! :)  I am definitely not a tax expert but working for an accounting firm I can get answers and learn pretty quickly when it comes to Real Estate and how it impacts taxes Etc...

Good luck,

Chris

Hi Daphne,

As most have said, 50 is not "too late" to start investing in Real Estate long as you buy right and know your market there shouldn't be an age limit put on this!

12% + is definitely attainable on multi families - say 2 - 4 family properties. Even single families can generate this return but it may be a bit more challenging but not impossible if you do your  due diligence, and again buy right....

Another option is Condos which typically give you less headaches to worry about as the HOA is responsible for all exterior and usually the mechanicals......

I have a portfolio of single & multi families as well as Condos here in NJ that I self manage. I Also have a stock portfolio of securities that generate a nice amount of increasing dividends. So between those two streams of growing income along with what ever I get from Social Security I should hopefully have enough passive income to live fairly comfortable at retirement....

Notes and Tax lien investing have always ben on my to do list to explore investing in but it just hasn't happened yet. I am sure it can be a good vehicle for passive income and I need to learn a bit more about them before investing money here.

Whatever you do just make sure you are comfortable with your choices. Total transparency is extremely important.

Good luck!!

Chris

If the Landlord is unable to get this abated and it is in writing and you were aware I don't see how you can not be liable. Why should the Landlord be liable for something that you forgot to do?

Perhaps the fee can be reduced or if not maybe the fee can be split between the two of you?

Good luck,

thx,

Chris

No, the CO is the CO and is required in order for a property to be occupied by owner OR landlord... This also varies town by town...

 The license is I am referring to is specifically for properties that are being rented.

Thx,

Chris

This is not true... HOWEVER.... some towns require yearly inspections of rental properties and upon passing inspection the township issues a "License" to be able to rent said property....

Perhaps that is what they are referring to?

thx,

Chris