All Forum Posts by: Linda S.

@Jim K.,

Rental rates where we invest in Petersburg have skyrocketed!   I'd say rental prices have gone up about $200-300.   A 2bd used to go for $700-800, now they are going for $1095.  Flippers are coming in, renovating vacant homes (YAY!) , and investors are grabbing them and trying to get the max rental income.     I see it all the time.  

It's absolutely crazy-- and on top of this, like 2500 Afghan families are being housed by Fort Lee, so it's about to get crazier!    I really feel bad for anyone trying to rent now, it's insanely competitive, and I can't see prices going down anytime soon.

@Kiel Martin,

Everyone starts somewhere.  When we started 5 years ago, everyone told us just to sell quickly and get out!   Now those people are saying we were "visionaries" in beating the market. 

We have done your exact model $15K-$40K cash plan (actually, ours range from $8K-53K, majority $25-35K), and it absolutely CAN work, but I'd say it's a unique model--- but doesn't work for 95% of people.    It's VERY sink or swim, and high majority of the people sink-- hence why everyone is telling you NOT to jump in.  Remember it's not just the purchase price, it's the renovation that will cost a lot more and come with surprises!    You ready to replace that main water  line for $4K-$6K, it might be coming-- and you might not really know it until you get someone in there.

You will be buying someone else's problems,  and you'll be fixing slumlord's shady fixes for a while...  so just go into realizing, it's a not a "steal" or some amazing deal, it's $15K because that's all the market says it's worth--period, because it needs a ton of work!

If you buy on the $15K, expect to put that $25K+ into rehab.. if you buy on the $40K side, you'll be buying likely a more solid home needing a lot less.    Most people here are just advising you to spend $$$ so it's less of a rehab, which is great advice!    We are working on a duplex now, got it for $15K, and you better believe we're at the $28K renovation cost now, rent will be $675/side, so it's worth it.. but i can't imagine if it was my first, whew-- all these giant renovation costs, it'd be insane if it was my first!

You got to know the streets-- talk to people, locals know which streets are good/bad,  all your potential tenants will have heard of an area...   it's better to know stuff that's good/bad ahead of time!

Another tip for warzones, instead of going for higher rent for your first one (if someone is desperate because of evictions/felonies/etc-- they will pay, but will likely trash it)-- focus on renting it for less than market,  and find a better quality long term tenant.    We have a house in a d-/drug area, and rent to someone on  disability/SSI-- for the right price, you can find the right person!     It's a win-win, everyone needs a home!

PM me if you need any advice!

@Joe Splitrock just nailed this 100%

@Laura Guy, if you're trying to improve the perception of landlords/housing providers/whatever, why not focus on starting a media campaign or a movement for good?   Give the media something positive to talk about then!   Paying lobbyists is such a waste of money.      If it's a passion of yours to improve landlords reputation, maybe create a forum or be a tenant advocate--- so many better options out there!

Also, I've seen this happen often in really sketchy apartment complexes... after a while, they get so many bad reviews online, they just change their name--every couple of years!  it's new "branding" .... Doesn't solve any problems, just new name-- only a matter of time before new complaints, and then another new name!

Real estate can create A LOT of emotions, including anger, frustration,  stress, fear, anxiety, disappointment, excitement-- and  while I might be in the minority here, I'd say yes it can bring  happiness (along with everything else, you don't get it by itself!).     

When I bring a house back to life that was vacant/abandoned, and you put new paint, update it and you meet the person  that loves it and genuinely needs it-- that brings me happiness.    The fact it doubled in value, and I'm getting $$$rent is icing on the cake, but feeling like you're doing something good-- that brings me happiness. It's not forever, but it's short and sweet.

Now on the flip side, when you learn that person actually trashed that place, then you get the first couple in the list!

@Maria Callaghan,

Yes, we avoid HOAs.  I agree some tenants don't take care of their lawn, but you picking the lawn care is a lot easier than someone else telling you how much you will pay.        As an owner, you have no choices, it's someone  telling you what you're doing-- not your  choosing to do it.   If you're OOS, it may be okay, some people like it, and if it works for them-- great!

I used to live in a townhouse with HOA, it went up $30-50/year, and one time they just sent everyone a bill for $1700 to repair the front railings-- no choices of doing it ourselves, or if it even needed to be done... your options are pay or move. The bi-laws might say nothing about renters now (my old one said 50% can't be owner occupied-- but how do you pick who gets it, and who doesn't!?) , but get a Karen neighbor and a bad/annoying tenant, and she will push to have it changed and then you're stuck. Just be aware of what you're getting into, as long as you're okay and understand it!

If all else is equal, a SFH will be a MUCH better choice IMO!

@Lara Nicole,

We have a house on a main/busy road, and I think the appraiser took off like $5-10K from the price to adjust for it being a non-desirable feature.    No parking would be a big issue for anyone living there, however if you have land-- you can make parking.   If everything else makes sense, create/add a driveway in the front or back yard!

@Michael Plante,

If it sells for that price, $650K-- then yes, it will be.     It doesn't sound like it will or should, but time and the sales price will dictate that.    As I mentioned  before,  I'd get a second appraisal and note all the reasons/logic he thinks the value is there compared to comps.

@Hady Farag,

Be sure to bring up all of those to the 2nd appraiser!      Get a 2nd appraisal, and  update the thread!   I'd love to know!

@Hady Farag,

A house is only worth what someone is willing to pay for it, and they determine it based on similar homes and recent sales.  

It's overpriced.

The year is one of the first things I put in when trying to figure out comps!  Unless it was completely torn down and rebuilt,   the repairs changing the year build.  Renovations don't make it a new build, but it will make the appraiser compare to similar quality houses.    The comps they listed, check out their listing with pics-- are they similar or not updated vs. your house is updated?        Whenever I have  a house getting appraised, I do my homework-- find comps and tell them everything you've done, and why your house is worth $$$.

 It sounds identical to these houses, so I think your appraiser is correct..   I'd suggest using the price/sq ft of comps, also look at your house-- what do the others look like style wise?   My advice is talk to the seller, the price needs to go down a lot, and get a second appraisal ASAP, but just looking at it based on the data you provided,  it looks on point.

  You're going to be underwater if you do this one at that price, just be happy to appraiser gave you an unbiased opinion!

163 S 6th St, Newark, NJ 07103

337 S 11th St, Newark, NJ 07103

@Tim Richter,

If it's  a newer house, and you can see exactly where mice are getting in at-- it's easy!   We just use regular caulk, and fill the holes, and that stops them.   Figuring out the entry points is the absolute most important thing.   You can do traps-- but that won't stop others from getting in.     If it's an older home, and regular monthly or quarterly services is needed, I'd split the cost with the tenant so they have an incentive to keep it clean.  Hope this helps!