All Forum Posts by: Christopher Lombardi

Wayne,  

Most of the homes I own are in Point Pleasant and Point Beach. I've never purchased a waterfront property unless it was a flip. If the goal is to buy and hold, you aren't going to make an ROI that is worth the effort. The taxes aren't bad in Point Beach so that is a plus, but on the downside, its hard to find good property management for vacation rentals. Its really a do it yourself job since the properties are run like a hotel, and it can be time consuming and expensive with each turnover. I would recommend buying a less expensive home and holding as an annual rental, unless you are in the area and have no problem with the management of a vacation rental.

If you do end up buying in the area, however, I can recommend some good subs if you ever need them. 

Hey BP, I am interested in joining an apartment association and was wondering if anyone was a member of both national and local associations. I am most likely going to join my local one in New Jersey but is there any additional benefits to being a member of the national one? Thanks in advance for the advice. Chris.

I can smell it from here. 

Johnny,

I own both single family and multifamily and in general I like to stick to single family.  You are correct, the returns are usually much better.  I think part of the reason for that is tenants pay everything but taxes and insurance.  Also, I find tenants are willing to pay more for their own house (maybe thats just in my area).  With multifamily, there is usually parking, common areas, landscaping, etc that is the landlord's responsibility.  

Also, don't let anyone tell you financing is better for multifamily.  I usually package 10 homes together with each loan I get and it is the exact same loans and same terms I get with multifamily loans.   Same goes for insurance.  One of my insurance policies has 24 homes on it.  

One issue is management; its easier to manage a single building.  However, there are issues with that as well....  If there is a leak in a unit, every tenant below may be effected.  If there is bedbugs in a unit, you can be sure the entire building will know about it, if a boiler goes down, you may have 50 tenants who are freezing.   If one of your many single family homes has an issue, it causes no problems for any other tenant.  

I like both sides of the argument, but I prefer single family homes for the higher returns at this point in time.  If the market turns that may change as well, but right now I would stick to your gut and do what you think will make you the most money.  

Chris

I was aware of the 10% rule.  Pretty unbelievable how these towns try to keep out buyers. 

I just sold a property and the inspection was the most thorough I've ever seen.  Unfortunately, I was on the wrong side of the transaction.  The info is below.  I'm not sure if he would travel to S Jersey but worth a conversation.

H & J Freile Home Inspection, Inc.

Middlesex NJ

Thanks Nathan and Marcus.  That's very helpful information.  

Thanks for the feedback.  I'm going to continue to research and will let you know if I make a move.

Congrats Dawn!  Something tells me you aren't going to stop there.

Hello BP,

I am a NJ and PA investor but travel to St Paul/Minneapolis a lot to see family.  I'm considering looking into buying MN multifamily but heard it doesnt have very favorable landlord/tax laws.  Anyone family with investing in MN or the Twin cities, and can shed some like on it for me?

Thanks,

Chris