All Forum Posts by: Ingrid Nagy

Ryan, I guess first you need to define what one considers a "good tenant".
To me a good tenant is one who holds a steady job, earns enough to afford the monthly payment and still buy food for themselves, and can prove that they have some consistent financial responsibility.
I probably turn away 50% of the people that apply for apartments. Yes they go to other landlords who want the immediate cash without a concern for the person's future ability to pay their rent, which perhaps you are classifying as a slumlord.
Simply put here is my "wishlist" for a new tenant:
1. A person who has a decent credit history. Since that is something that cannot be found in my area I then accept
2. A person who has a steady job and can prove they have and are paying regular monthly bills on time such as rent, car payments, insurance, electric bill, phone bill, etc.
3. If Person #2 above has never had an apartment before but can meet the remaining criteria of fiscal responsibility I give them a chance. If a person has never rented an apartment before someone needs to give them an opportunity to establish their creditworthiness.
4. If down the road I ever come to the realization that there are no more people qualifying under #1, #2 and #3, then perhaps I would have to re-evaluate my criteria and end up being a slumlord........sure hope not though.

I've had laundry concession companies for years. This year I installed my own equipment - 4 machines-2 washers/2 dryers for 35 units. Income is about $450 a month with vend prices at $1.25 per load ($5400 per year). I think it depends on what you want. Machines new were $2900. Your equipment is paid off in a few months. If you opt for machines supplied and serviced you generally give up half of your income to the company but you have no liability for the equipment. Your electric/water/heating expense however remains yours.

Sure Ibrahim,
It's Rutgers Continuing Studies, Mary Lou Giese or Edyta Nagorska. Class is entitled Lead Ready Renovation and Maintenance. 732-932-3640 fax: 732-932-3586.

Course fee now is increased to $50. Courses are offered all over at various hotels (one day course). Contact the women and they will put you on their mailing list for the Fall Schedule. I tried to register two Supers and was told that the classes are booked solid through the Summer.

I give them a one page app and an option of either mailing it or faxing it. I list both options and #'s at the top of the page. Also do you charge any application fee? Some people steer away from units that have up front charges. I have found that people will always take the application; for some reason in the psychology of it all...they are afraid to say they don't like it, its too small, etc. etc. so if they take the piece of paper they can just walk away.

Sounds like you have a great plan!! You might want to try craigslist too and search under kitchen cabinets. Sometimes you can find something to fit. I found a woman who was planning on gutting her kitchen and then when the market went upside down she couldn't afford it. I bought 17 brand new cabinets for $1200 including toe kicks, fillers, lazy susans in boxes. They were straight from Lowe's brand new. She had all the sizes listed and I was able to make each one fit. I searched for 5 months so I guess it all depends on your time frame. Good luck with the Kitchen!

I found a carpenter who makes plywood grade cabinets at very similar prices to home depot/lowes. I only use him when I have time for a job. Usually we are in a rush and have found the Lowe's cabinets work better for us right off the shelf. Not sure about the American Classics; have used the Mills Pride but they are a pain.
I've never done a U kitchen but have done L kitchens. Also have not used crown molding because my apts all have a soffit-straight run.

We hang top cabinets first, one at a time starting from corners and working out, leveling each. When the next one comes simultaneously we level it and also make sure faces match up. In addition to securing to wall we put very narrow nails through the facing to be sure they stay lined up. It is extremely important that you check your level before you even begin. You could have level cabinets but an uneven or out of whack room to work with.

Bottom cabinets are much easier since you can work pretty easily alone on it. With bottoms we screw the run of them together first, then put in place, then check level and raise/lower with shims and affix to walls. Just make sure you hit studs and not electrical or plumbing lines. The supply store may have done your layout so just be sure to insert fillers as and where needed. I've never attempted a U shaped countertop so this is out of my league.
In stock cabinets look nice and are functional. However they are only particle board. Shelves tend to bend if too much is put on them and of course sink base cabinets do get destroyed if there's a plumbing leak that no one tells you about. Aside from that I think they look great. A cute tile backsplash between the uppers and lowers can run you about $50 between material, mastic and grout and you end up with what appears like a professional kitchen.

You may also invest the proceeds in multiple properties as long as you meet the deadline (6 months? I think).

I myself have been pondering this same issue. From my experience I am seeing advantages & disadvantages to both. Funny thing is that I began in r.e. with seller financing. My former employer and mentor moved away 15 yrs ago. Rather than sell his property he gave me opportunity and himself a fixed retirement; sold some of his assets to me and held the paper on an installment sale basis. One property I purchased at 1.5M he structured the financing at 9.5% for 32 yrs. It was a no money down deal with interest only payments for the first 2 yrs and full amortization the remaining. This gave me the chance to bank some cash for reserves and capital improvements. Thru the years many have said to me you could refinance, you're paying too much in interest. Although true, we made a deal and I am honoring that deal. We have both benefited. He has a secure retirement he was seeking until I sell, avoided capital gains, paid no commission or closing costs.....I now have a property worth 3.3M. I am at a point now where I must make the same decision as the kids are not interested in real estate.

My point here is you really must feel comfortable with your purchaser or alternatively, be sure that you have adequate protection in place to take back title to your property in the event of a default, be able to immediately appoint a rent receiver etc. I've seen several buyers of seller financed properties just strip a building and leave a seller worse off than when he started.

I do work for another gentlemen that sold his assets during the boom in 2005 and did 1031's of course into higher priced properties. He did avoid the taxation by this method; however, the 1031 properties were also bought during the peak, have depreciated, suffer vacancies in the current market, and are at this point negatively cash flowing. Was the gain on avoiding capital gains worth the loss created by the current market conditions and overpaying on the 1031's?? I guess I won't know this answer for a few more years.

I've been in the same negative cash flow position several times myself. In NJ we are stuck with an assessment until either a townwide revaluation (every 10 yrs or so) or we file an appeal. When I appealed I recall that the appraiser used the income approach to value vs. market sales comps - the property was a rental.

Here in NJ because of State Budget cuts, our towns are pulling the "emergency button" which gives them the right to increase our rate beyond a normal 3% annual increase. We are having a hard time swallowing this first because we have the inflated bubble assessment to begin with and second they are killing us on the rate. On a $400K house I pay $9700 a year and this year will face a 10% increase.

The real estate tax problem is difficult enough to deal with costwise. The other negative effect is that it now technically reduces our value even more because when a potential buyer is calculating their affordability to qualify for a mortgage, their buying power is yet again reduced (less money available from their income for P & I means lower mortgage and lower price)

I have lived thru the inspection process and compliance with this rule/law now twice. It applies to rental housing. At the moment its enforced by the State in relation to multi-family dwellings...My State does not have the manpower to enforce it currently on single, two and three families-they will though as it is a potential added revenue stream. In NJ multi's have 5 yr State inspections so it's natural that we get hit with compliance first. The key is to keep your property painted and not have any peeling paint.

I read about the law a while back but didn't pay much attention. The inspector did her inspection and found a number of units with peeling paint - not much - very small patches - not enough to qualify under the sq footage requirement. Could have argued if I knew more about the law then but I've learned you don't argue with State inspectors. At the end of the inspection she asked who did my repairs and to see my Lead Certifications for those individuals. Well I told her its just me and my Super. She gave me a # and a brief education. We signed up for the course, got Certs and made our repairs. Because I was cited, the law applied and I had to submit dust wipe sample results from a lab. The same person that makes the repair cannot do the samples. Therefore, my Super made the repairs and I took the dust wipe samples, sent them to the lab, and faxed the clearance reports to the State.

I was almost done except that 2 apts were cited to be tested and inspected by a Lead Certified Company approved by the State. There is no rhyme nor reason why she selected these 2 units - the only thing I can think of is the State wanted to be sure that we were properly testing the site and not another property that might have been built after 1978.

Dust wipe samples can only be taken from the floors, carpeting, window sills or window wells. The company came in and did the same thing I had done - took dust wipe samples, sent to the lab, and sent me a report of clearance which I submitted. Hooray...inspection passed. Total cost to me: $65 per apartment x 37 units for State inspection, $50 per unit for lab tests of dust wipe samples x 12 apartments cited, $700 for certified inspection & testing of the two "special" units cited.

The law requires that you also maintain a yearly checklist on each apartment that basically acknowledges that someone has checked the unit for peeling paint, what date, who, and if repairs were made.

Inspection of building #2 was a breeze. I learned.......checked each unit and made sure there was no peeling paint anywhere. We passed with flying colors.

After this I learned many things 1) check each apartment once a year 2) repair peeling paint immediately 3) in pre-78 housing I no longer install carpet but refinish the hardwood flooring and install linoleum tiles.

Many of you probably inspect your units regularly. In multi's we sort of develop the habit of expecting the Super to keep up on it or expecting a tenant to report peeling paint. I've learned that doesn't happen - the tenant never reports it - they don't want the landlord to see they are a) are filthy, b) have a friend not on the lease living with them, c) have a cat not permitted, etc. etc....