All Forum Posts by: Kevin Hill

Study.

Hi Lisa, you are right. Those towns don’t have many multi-families and it’s been further exacerbated by the low available inventories this year. Most single family homes in Bergen County were large single family homes that were converted into 2 families. Southern Bergen County (ex. Carlstadt, Elmwood Park, Garfield, Fairview, Lodi, Wallington) has more multi-families. Eastern Bergen County (ex. Cliffside Park, Palisades Park & Fort Lee) they have newer/new construction duplexes, but those are often expensive. Bergenfield has some 2 family inventory. Not saying it’s impossible to find a multi-family in those towns you mentioned, you just have to jump on them right away when they come on the market. 

What type of auctions? There are online sites like auction.com and Hubzu.

If you are referring to sheriff sale auctions, your local county in New Jersey holds them. Note there is a foreclosure moratorium currently due to COVID-19.

Yes, some agents can be unresponsive and you wonder how they even stay in business.

It’s not so much hard finding an agent, as there a ton of agents out there, and the “mass exodus” from NYC, it’s just there is a severe lack of housing inventory available, especially multi families in your price range.

You might have some renters who don't care. It will have to be disclosed to any potential tenants. Homes located in flood zones don't appreciate well.

If it cash flows and you have flood insurance, I wouldn't worry about. It might take longer to rent, just make sure the rent price reflects the poor setting. In the future, I would avoid purchasing in any flood zones. 

Good points! That's the problem with investing in 1-4 family homes, you really feel it when a tenant doesn't pay and you have to be able to afford the mortgage without their rent payments.

In my  opinion, recommending new construction for a newbie is awful advice. In my area, new construction homes are very expensive and out of reach of most first time investors, secondly, the market is on the verge of turning in many areas and the house might lose value before its even finished being built, raw land often has to be bought with cash only, and construction loans are very expensive.

Keep in mind, an FHA 203K is not for investors. You would have to live in the property for a certain period of time.

The market is very over inflated in my opinion and near/at the peak. 

I believe the bigger impact on the market will be when the eviction & foreclosure  moratorium being lifted, if we see a 2nd wave hit our area, and the unemployment numbers. Real estate is always cyclical and I believe we are at/near the end of this period of increasing home prices we have had since 2011 locally.

 Yeah the overleveraging part scares me. Many people got hurt by cashing out all their equity last time we had a downturn in the market. Thanks for commenting!