All Forum Posts by: John Barbosa

Don't believe everything you see on social media, especially those who provide little to no value on how to do it but then want to sell you their course.

What towns are you looking at?

Welcome!  I was born in Newark and grew up in the surrounding towns.  I also spent some time living in Newark and managed some properties there.

Are you looking to buy in Newark?  It's one of the few places in NJ that you can still cash flow with multifamily.  Most single family properties won't cash flow here without large down payments because the property taxes are high.

The tenant risk is obviously much higher in Newark because most of the qualified tenants flee outside of the city to more desirable towns.  For example, I can list a property for rent in Kearny and have 10-15 qualified applicants in a week.  I'll also have less turn over in Kearny properties than Newark.

You'll also find it more difficult to fill those units with tenants that qualify with the standard screening criteria that most on here will recommend (ex: 3x income, high credit score).

We're also in a very tenant friendly state so proper screening and management is probably the most important part to success in these areas.

House hacking a 3 or 4 unit is a great way to cash flow and get the first deal financed with a traditional mortgage.

Feel free to msg me with any specific questions.

Have you tried looking for a local handyman?  They should be able to help with minor things like furniture removal and possibly the trash removal step.
 

I'd be rejecting them as unable to verify references and income and move onto the next potential tenant.  It sounds like way too many red flags.

A tenant who is willing to make improvements to your property plans to stay there long term.  If they are a great tenant like you say I would accommodate this request, especially if they don't have a history of requesting upgrades in the time they have stayed there.  

I would have all the terms in writing so there are clear expectations from both sides.

Some concerns:

1. Make sure the contractor is reputable, licensed & insured.

2. Does the tenant have funds on hand to pay for the work?

3. What are the tenant's expectations?  

If you give in on this small $20/month raise you are setting negative precedence going forward.  I would follow the rent increases as listed in the lease schedule, and as others have mentioned offering them a penalty-free early termination of their lease if unhappy.  They won't move out if market rates are higher and even if they do you end up renting for the higher amount which is a bigger win in the long run and the problematic tenant removes themself.