All Forum Posts by: Kevin Hill

The recent foreclosure listing I had, in a high end area, they ended up giving the tenant $7500! You don't have to do that. 

Based on those rents, they might settle for $250 or $500 and be happy to go.

One other idea, you could do what banks do when they have a tenant in a foreclosed property, offer cash for keys. Negotiate an amount that could help them with their moving costs. It could be a lot cheaper in the long run than going through the eviction process. New Jersey is very tenant friendly, so avoid the courts if you can.

After pics:

Here's some before pics.

No problem, good luck! Depending on what town and the size/condition of the apartment, you might be able to get more than $1200 a month for a 2 bedroom with the lack of available rentals on the market currently.

Here is some info on increasing rent in New Jersey.

http://www.state.nj.us/dca/divisions/codes/publications/pdf_lti/rnt_incrse_bultin.pdf

Here's another link to towns in New Jersey with rent control laws.

http://www.nj.gov/dca/divisions/codes/publications/pdf_lti/rnt_cntrl_srvy_2009.pdf

First off, thank you to Bigger Pockets! I learn a ton off the site and podcasts, which helps me, as a real estate agent, better serve my investor clients. Best thing about it is making connections with like minded people in your area.

Met fellow member Kris Rasmussen off Bigger Pockets and he happens to live in the same town as me. After meeting and already being on the same page due to everything we learned off Bigger Pockets, we identified areas in Bergen County, NJ to focus his search for his first buy and flip. 

After seeing some houses and searching for a few months, we found a great potential house. It was an estate sale in Dumont, NJ. It was a bank owned property acquired through a reverse mortgage. The owner was 93 years old when she died and the house hadn't been updated in decades.

We jumped on it quick after it hit the local MLS. There were several bids on the property, but I knew it was a good deal, and Kris actually paid $10k over list price. Having already analyzed the current market value and ARV, there was still plenty of meat on the bone.

One good thing to know with foreclosures, even though the property is being sold in 'as-is' condition, you can still get credits from the bank. It turned out the furnace was shot and a large cast iron waste pipe was rusted out and needed to be replaced. We were able to get a credit from the bank to cover the cost.

I won't sugar coat things and say the flip went super smooth. We had delays with the contractor completing the work, unforeseen repairs required, a contractor scratching up the floor 2 days before the open house after they had already been refinished, and problems with the town & contractor over permits.

One tip I would give investors, I would actually go down to the town with your contractor and make sure all the proper permits were pulled so you don't have any problems when you go to get your certificate of occupancy. Some towns can be tough.

Also, have patience with buyers, especially if your home is in the first time home buyer range. They can often be panicky Petes and unless they have an experienced agent to counsel them. 

Even with overages and delays, Kris made $26k on his very first flip and we are already looking for the next deal in Bergen County!

Should I do a blog entry with all the before and after pics?

Welcome to Bigger Pockets Jonathan! Fellow Bergen County resident here!

Use the standard lease and add an addendum. In the addendum, I would add things like no smoking, no treadmills, etc. I would also put in a provision to allow the apartment to be shown during reasonable hours with notice if they decide to not renew the lease. 

Also, if the tenant is responsible for example, for the first $100 any repairs.

You could also provide in the addendum the names and phone numbers of the local utility companies, water, and cable providers that they need to contact to put in their names.

 Hi Shannon, just keep in mind with a 203k loan, you have to occupy the property. Might work with a small multi-family with you living in one of the units.