All Forum Posts by: Laura B.

Seriously, first thing is check what the zoning will allow. Its been vacant for a long time for a reason, and many times the reason is zoning limiting its use. Converting to multifamily is frowned upon where I live, and it seems they (the planning board) would rather a building rot to the ground before they will allow conversion to multi-family.

Absolutely killing me here in NY. 1100 sq ft ranch, 3bdr/1ba, $2000 month rent, $11,000 property taxes. Can't fight them and win, comps are paying that and more, been told by 2 appraisers that fight taxes for property owners that I don't have a case that is winable. Can't charge more for rent, market won't justify it and local salaries won't allow people to afford it.

Where I live there are many people who move here from Puerto Rico, they are citizens and have SS #'s, but generally don't speak English. I am not a landlord (yet), but at work and around town I do sometimes need to communicate. I use an app called iTranslate, its free for iPhone and iPad. You can input in English and it will translate what you wrote into any language you choose, it will even speak out loud whatever you wrote in the chosen language. The only negative I have found is that if the person you are talking to is illiterate, they can't respond, but I've only had that happen once. I would definitely try to find a way to communicate, they could be great tenants.

I'm looking in Rockland and I really don't think its going to be possible to have any cash flow at all with the age of the multi family housing stock ( most 100 years old or more ), the conditions of the buildings and the prices being asked. SFR are not working for me either because the property tax burden is so high that its impossible to break even, never mind cash flow. Very discouraging.

Shawn,
I am located in the same general area as you, about an hour from Denville. I know its really impossible to find a good deal that will cash flow with the high prices and taxes. Be careful and make sure you are factoring in all the expenses.

First, is the tenent rent covering 3/4 of your mortgage including taxes, or are taxes on top of that. And how much to update/ renovate the unit you would be living in? If you rent both units will all expenses be covered including taxes, maintenence, insurance and vacancy? Or will it cost you to own. If its going to cost you to own its NOT a good investment. And where would you be living if you rented both units. Which option has a lower cost of living for you? Also, have you considered what it would be like living right next door to your tenants? It could be no problem or it could be a daily headache, so make sure to feel that situation out too.

I think multi families are a good initial investment, especially in high cost areas. Make sure to do the numbers and be careful not to end up in a negative cash flow situation.

Why would the other agent call your agent to say she had close to a full price offer? What good would it do her to lose the sale by giving your agent a heads up so that you could have an accepted purchase offer? The only one who benefits in this situation is your agent cause the more you pay the bigger her comission. I call BS.

Well, Joel and Ben, you guys type too fast for me, so I was replying while you were replying ( or something like that). A few of these properties have been in the same hands for forty or fifty years, and don't appear to have been updated or maintained in all that time.

Thanks for the advice and reality checks, its just what I need, cause I want to succeed, not fail.

Thanks for the reply, James. It didn't occur to me that the tenants could be responsible for the conditions I've been seeing. Thinking about it, it still seems that the owners are responsible. I'm seeing a lot of peeling paint, especially on bathroom ceilings; leaking plumbing and roofs with pots underneath the leaks; layers of carpeting, like old carpet is never removed and new carpet is just put over it, windows painted shut, decks and front porches with holes and pealing paint, old old old appliances, countertops and cabinets, rust stains in sinks, plaster walls with chunks missing and then the holes painted over, etc.

Single family homes would be easier, but property taxes are so high I would have to own it outright to make any profit at all.

Anyway, still looking.

Hi all,
I found bigger pockets while looking for info about investing in real estate. I think this site is amazing, such a wealth of knowledge. I really appreciate the time all you experienced investors take to help the not so experienced. Its a real community, and I don't think you'll find anything like this anywhere else online.

I'm interested in investing in real estate. I feel like I need a project, and, also, I would like a lower risk investment. I feel like real estate is lower risk because at the end of the day you will still own property. I hope I'm not wrong about my risk assessment.

I am actively looking at multi families now, its been quite an experience. I think what shocks me most is how badly kept most of these properties are, like zero maintenance inside the apartments and no updating at all. I hope I don't turn out to be a bleeding heart, because mostly I feel like I want to move the tenants to a hotel for a week and fix the apartments and then move them back into a place where they can live in dignity. I would classify 100% of the owners of the places I've seen so far as slum lords. Its really disturbing (as evidenced by me venting here). And the price to buy these houses averages about 1/2 MM.

So thats me. Thanks again for the existence of biggerpockets!
Laura

Where I live, that shack with the $10,000 proprerty tax costs $250,000 and would rent for about $1800 monthly.

I assume that this property would not be a good investment, as no one
has addressed what a reasonable price for this property might be or how much to factor in monthly for maintenence considering the age of the property.