All Forum Posts by: Ingrid Nagy

Nate I would invest in a two family; live in one and rent out the other. You are a first time home buyer and a potential owner-occupant with a job to show income so you can take advantage of great mortgage rates and terms available to you right now, assuming you have good credit. For you, now is the right time to make your move. Check out HUD homes, foreclosure or short sales.

Sorry - this applies to NJ evictions. I don't know the rules in other states.

Aly, FYI you can still do the forms yourself and file them. If you choose a law firm that does LOTS of tenancy work they will charge an "appearance" fee of say $140 to appear in Court that morning and that's it. You merely fax a copy to your attorney and "someone" appears that morning. These firms are big and have one attorney in each County every day of the week. Big multi-family landlords do this all the time. If you ever attend a tenancy hearing they usually have a roll call of 100-200 cases a day. It runs just like an assembly line-default, dismissal or mediation. Non-payment is the easiest eviction case - a Judge must rule in favor of the landlord always UNLESS the tenant can prove repairs were not made. EVEN in that event the tenant must POST cash rent with the Court until landlord makes repairs at which time funds are released to landlord and case is dismissed.

Sadly I have watched this happen to some friends in 1988, 1995 and now again in 2008. The rise of the market as it progresses creates a strange perception in some folks. They think the gravy train will never end and after doing deal after deal with great success they grow bigger and bigger and become more leveraged than ever, convincing themselves they will be out with a huge profit before the next crash.

Oops Yes i Did forget condo insurance I apologize - which is $1100 per year total (Blanket insurance provided through homeowners dues). We call HOA Dues condo maintenance around these parts but in reality it is the same thing. I don't have a P & I payment any longer; it took me 8 yrs to pay it off from my NOI.

$125M

As you guys know, I am NOT a numbers cruncher at all. I would love for you to analyze the following.

10 one bedroom condominium units within the same complex.
These are my 08 figures and please keep in mind they are actual:
Gross Rent: $95,250.00 (Average $700-$725 per mo)
Expenses:
Legal $205.00
Window Replacement: $720.00
Repairs: $665.00
Condo Maintenance: $18,392.00
Sewer Tax: $1750.00
RE Tax: $13,752.00
CF: $59,766

Keep in mind that there were no vacancies during 08. I keep my rents at about $75 per mo below market to retain my tenants and because I am lazy-I hate vacancies. Repair costs involved leaking toilets or faucets and I have hired a handyman to make these repairs. The only improvements I make upon vacancy depending on condition of unit is new carpeting and occasional appliance replacements such as stove, refrigerator or HVAC (thru the wall) as well as fresh paint.

Aly is correct about the actual fees charged by an attorney. I worked for a real estate attorney for about 10 yrs before REI. The forms are all available however at each County office and are "fill in" forms. If you are kind to the staff they will bend over backwards to provide you with the blanks; in fact some Counties offer them online to print out. Once you have a set and know the procedure for your County, its a piece of cake. Of course, if your ownership entity is an LLC or corporation you MUST employ an attorney or your case shall be dismissed. Partnerships and sole proprietors can represent themselves.

Peter, I have processed literally hundreds of evictions over the years for various employers for non-payment and not once did I encounter a tenant who took advantage of their "miranda" rights?? Like Jeffrey stated if you follow a set procedure you will very rarely lose. I invoke the late fee as of the 5th and if I don't have the $$ by the 8th I process the eviction myself (just paperwork and a fee). It costs $25-$30 but insures a court case to be heard within 30 days. So if you stick to the procedure the most you can lose is the 1 1/2 month security you required tenant to post at lease inception. HOWEVER, your loss can occur when they vacate depending on the condition they leave the apt in.

No I have not closed yet - scheduled for Tues 12/29. I made the offer on 11/24, got verbal acceptance on 12/8, written on 12/15 and was set to close on 12/23......but the title company had a small issue with a permit taken out for a circular driveway that should be cleared up by Monday. The seller is UBS? and I believe because it was a cash as is sale it moved quickly. Unfortunately, being as is, I found out that the well is collapsed so there is an expense I was not counting on....oh well. So I'll have a house but no running water LOL for a little while. Aside from that I like the house and my intent was to keep it as a second home for now until the market improves someday. It needs work but I did expect that. Anyone know anything about wells and water filtration systems, costs etc?