All Forum Posts by: John Walter

Where I'm at in NJ, I have actually seen the exact opposite. Prices seemingly skyrocketed overnight. New construction homes went from the low $500's to the mid to high $600's (we even have one person decide to list theirs at $949k). I can't imagine many people are offering on those homes, but supply is definitely decreasing here.

@Mark F. @Michael King

In my area, I pulled these directly from the city bylaws. I also spoke with the 'Construction Office' for the city, which confirmed everything for me and advised the main thing I would need is an inspector to verify the basement is "interconnected" with the first floor. This means that the stairs go directly into the unit of the first floor, and not a common space (such as a hallway).

Hope that makes sense. Let me know I can help any further.

Basement Requirements:

No basement space shall be used as a habitable room or dwelling unit unless:

A.

B.

C.

The total of openable window area in each room is equal to at least the minimum as required under Article IX of this chapter, except where there is supplied some other device affording adequate ventilation and approved by the housing inspector.D.

There are no pipes, ducts or other obstructions less than six feet six inches above the floor level.E.

All furnaces or other heating facilities are so located, insulated and separated from living areas by fireproof partitions or walls necessary pursuant to regulations of the fire director, so that the same do not constitute an undue hazard to the safety and health of the occupants.F.

There is a second means of egress conforming to the requirements of Section 15.12.270 of this chapter.G.

Basement space which shall be used as a habitable room or dwelling unit must conform to all provisions of this chapter and all other applicable ordinances.

(Prior code § 32-74)

I'm not a realtor, and I don't have years and years of experience in investing. That said, the biggest issue I have faced in the past few years has been finding a decent agent. I'm at the point where I'm so fed up, I'm considering just getting my license so I can have direct access to the MLS and put in my own few offers every week.

The biggest issues I have faced with realtors I have worked with:

- Don't answer phone or get back to me

- Take DAYS to put in an offer for me

- Don't answer questions/provide property information

ALL that said, I'm not ignorant to the fact that I have probably annoyed an agent or two. That said, how can I make myself more attractive to a great realtor?

@Alejandro Tirso Sounds like my area. Everyone advised me that the "basements" were illegal to be rented in any way. All the realtors told me that, other homeowners in the area told me that, basically anyone I spoke with advised it was illegal, but no one could tell me why.

I took it upon myself to go search what made it illegal, and it turns out everyone is just lazy and doesn't do their own research. I read through the bylaws, the chapters, all the requirements, and eventually called the city and confirmed everything with them. Granted, there are several requirements in order to make this legal, but I was having this home built so it wasn't a problem (all the requirements were already part of the plans anyway).

My advice, is if the neighbor wants to be that way, try and play nice, BUT research how to make your unit legal. If it only takes one certification, then go that route, if you need to sublet that area out as a room, research that.

Hey Justin, good choice on the house hack, and in really big on Elizabeth. 

With 3-5% down, you're looking at FHA, VA (if you're a Veteran), or some banks will do conventional as low as 3% down. Do some research on the positives and negatives of those to figure out which will be best for you.

For a first property, it’s impossible to say which is the “best” lender without knowing your exact situation such as goals, credit score, etc. So in the most basic sense, because interest rates are so low, the big banks may be your best bet. They can offer great terms, and assuming you have steady income, they are relatively easy to get. 

Hey Keith, thank you for your service, and welcome to BP!

I'm closing on a MFR at the moment utilizing the VA loan. It's a great asset to have, so utilize it to the best of your ability!

As far as finding MFR, especially for someone new, I would go through the same process as anyone else. Search for listings on Realtor, Zillow, Redfin, etc. Find out what your criteria is, where exactly you want to live, your budget, size of the property, etc. Once you have narrowed down what your wants are, start looking for a real-estate agent. If you can find one who specializes in Multi-Family, VA loans, and/or investors, this is even better. Have them send you listings from the MLS that match your criteria every day so you can start to get a good idea of what is what. That said, make sure you are ready to jump on a property as soon as something come up that matches all of your criteria.

If you have any specific questions, let me know and I'll help out any way I can.

@Aaron Hilgemann Welcome to BP!

As a fellow Veteran, thank you for your service. Be sure to take advantage of that VA loan, it is a great asset. Remember, you can get anywhere from 1-4 units with that type of loan, so it can be a great way to start (especially if you will rent out rooms in your unit).

Let me know if you have any questions with the VA process, house hacking, or the college rentals.

Congratulations on your upcoming graduation, and good luck in your career!

 I'm in Elizabeth, NJ. (somewhat North Jersey?). The last property I offered on (about two weeks ago) was listed for $430k and I offered $350k. Yes, that is quite a bit lower, but the seller received only two offers: mine, and one for $360k. It's a rare triplex with low taxes, which is the only reason I'm interested. This property has been listed for a few months now, and I struggled to find a real estate agent willing to even put in that offer. I have one now that was at least willing to write the offer, but was uncomfortable about it.

NJ is a new area for me, and finding a good agent has been the biggest issue for me. Hopefully, it gets better. That triplex I offered on a few weeks ago, was sight unseen. They haven't received another offer yet, so I'm going to the property tomorrow to take a walk-through and follow up with them. We'll see how it goes!

 Any advice for getting several offers in each month when you’re not an agent? One of the issues I have came across is finding agents willing to do this, even when they agree properties are overpriced. 

@Joel Paolo The VA does not have a minimum amount of time that you need to remain in the residence for, only that you MUST make this your primary residence within 60 days of closing. There are certain ways to get around that, but that's a different topic.

As for occupying the residence, the VA does not explicitly state anywhere what the minimum amount of time is that you must make this your primary residence. That said, lenders can absolutely make that stipulation, and if asked, most will tell you 12 months. If the topic completely stops here, use 12 months as your hard and fast rule, as I have used this in multiple states and never heard of anything over 12 months.

To go a bit further, let's say you wanted to use the VA loan again and again (my strategy). You can use this for anywhere from 1-4 units. Typically, you will not be eligible for multiple VA loans at the same time, unless you either move, or you have some other extenuating circumstance (possible divorce, etc.). So if you stay in the same area, you can always refinance the property and get into a conventional loan. Once you do that, your eligibility will free up to re-use the VA loan once more. Again, you'll still have to meet minimum DTI requirements, credit score etc.; however, that is the most common way to use the VA loan again and again.

Hope this helps.