All Forum Posts by: Joseph Chacko vellukunnel

safwat, at tadco engineering

thanks @William Kwong, that was a lot of great info. I'm under contract on grand fathered 3 family that is currently being used as a 2 family.  The home requires quite a bit of rehab work.  I've also had a structural engineer and architect inspect the put together the plans.  I'm now interviewing contractors and would love to get any recommendations for people that you've worked with in the area. 

thanks

Joseph

@Jonathan Greene, @Hui Song - I checked with the zoning office, this is a non conforming 3 family unit.  So its legally a 3 family and I can use it as is.  the previous owner was using it as a two family though and not renting out the extra unit.  I would like t know if there are any pitfalls in investing in such a property.

Hi BP team, I'm gut renovating a grandfathered 3 family in jersey city and would like to know if anyone here has any experience with such a project.  The property was earlier being used as a two family.  I'd like to understand any words of advice, anything I should plan extra while budgetting renovations, etc.

Thanks

Joseph

hi @steve, I'm in the exact same spot and looking for a good contractor to get renovate on a 203k loan in jersey city heights.  who did you end up going with? I'd like to pick someone based on a recommendation.

I'm buying in the heights. near the Christ hospital area.

@Michael, did you end up making a purchase in jersey city? I'm under contract for a property, but trying to pick the right financing option. I've heard 203K loans can be very tricky to manage the terms. wanted to ask about your experience.

Hi BP,

I am exploring a Multi Family (2Family) investment in jersey city heights (close to christ hospital).  The strategy is to buy and hold with positive cashflow.  I have some prior experience house hacking my condo in union city, but outside of that I am generally new to real estate investing. This definitely feels like a step up and I wanted to ask a few questions as I try and navigate this opportunity. 

1. Renovations and Repairs- The property is  a ~100yr old brick  building and will require some work before its rent ready.  I also noticed a few cracks around the building exterior and uneven floor in the basement.  I'm getting a contractor/ structural engineer to come by and help me draw estimates and understand how serious these issues are. My agent is still not able to get the seller disclosure, but hopefully that has some clues as well.

•  As a rookie, what are works that Is should stay away from?
•  since the building is old.  I am thinking I'll have to set aside expenses to redo the wiring, plumbing, etc and bring them upto code.  Typically how  much extra should I budget for, for these unknowns?
•  I am thinking of doing some remodelling inside, moving around a few walls, opening up the kitchen.  What permits would I need from the city?  How long would this process take.
•  Given Covid related material and supply shortages, should I plan additional buffer time around my contractor's estimates.  Trying to understand how long the property will remain vacant after purchase.

2. Financing - since the upfront repair work might require additional cash out of hand,  what are some creative financing ideas. I was hoping to get the property refinanced at a higher valuation after repairs and pay out any bridge loans that I had procured in the interim.   Let me know if thats not a good strategy for the area.  Also let me know if you have recommendations for local banks that I can work with.

3. Tenants and growth potential-  Any thoughts on "the heights" and whether the area still has room for appreciation?  Also, wanted to ask if anyone has experience renting in this area.  Is the tenant quality good?  Do they typically stay long term?

4. Team/ Networking -  I'll need all the help I can get with this property.  Contractors, brick masonry experts, structural engineers, home inspectors, lenders.  Any suggestions for local experts in jersey city?  Would also love to connect if you're also an investor in the area. 

Looking forward to connecting!

thanks

Joseph