All Forum Posts by: Mala S.

@Steven Schulman

Consider the following factors to see if converting to 3 family will be worth it.

1) property insurance is much higher for 3 family property (could be as much as $200/mo more)

2) property taxes will likely go up

3) 3 family properties in NJ must be registered with the state and be inspected every 5 yrs (not 2 family)

4) check Bayonne’s rent control laws. In many areas rent control kicks in a 3 family ( while no rent control for 2 family)

I own a 3 family in Hudson county and I wish I had known the above before buying.

Also, I think the market for 3 family homes reflects the above. Ie: the listing/ sale price of 3 families are less than what you would think considering there is a whole other unit when compared to 2 family homes.

So IMHO, if you want to own a 3 family, you may be better off buying a 3 family, than trying to convert a 2 fam.

@Tasia Turner don’t hesitate, throw a fit, point out all the areas of concern, demand they fix it for free. They may not fix it exactly how you want it but at least they can improve it at no extra cost.

Everything is a negotiation, you need to constantly ask for what you want or you will never come close to getting it. Also, you are building a long term relationship with your contractor (since you are doing multiple flips), so it’s in their best interest to keep you happy. If they don’t have any interest in doing so, you are better off moving on to a better contractor.

Don’t buy the hype about it being harder for women. I find that in a lot of ways its actually easier for women to do all of the above. So don’t hesitate and get your stuff done the way you want it.

@Aaron Schump

Welcome Aaron! I am an architect and on my second house hack. I gut renovated the second one and we will be doing a BRRR to acquire the next one.

It’s been a real game changer for my husband and I.

I actually love my job as an architect even more now, and being an architect is such an asset to bring to REI

@Wil Reichard wow, great job on the reno! It looks great!

@Christopher Lane

It’s funny how much the family we grew up in can influence what we view as “normal”.

My Dad was a full time real estate investor my whole life and was therefore never beholden to a 9-5 schedule. I think this might be why I’ve always been attracted to men who are not tied to a 9-5 type of job and have some flexibility in their schedules (entrepreneurs, investors, freelancers, etc). Also, it takes a certain type of ***-kissing personality to successfully climb the corporate ladder, which I am also repelled by :p My Dad is no ***-kisser, that’s for sure!

Most of my family members are business owners and often roll their eyes at me when I say I have to work late or say things like “why are you working so hard to make someone else rich?” That’s my “normal”!

It sounds like you and your wife had very different experiences growing up. This is pretty common in marriages (you can’t marry yourself right?). You should go to couples counseling to learn about your differences and how to accept and appreciate them. I know this sounds like I am sending you 10 steps back on the game board even further away from your goal of purchasing real estate... but you guys really need to get on the same page emotionally about this. Your problem has nothing to do with money.

And consider this: there is a real possibility you may fail on your first deal. You May over pay for a property, the roof may cave in on day one, your tenants could stop paying the rent, etc, etc... you need your wife to be supportive if any of these things happen. So she needs to understand you as a person first, and understand the business next. I mean, if your wife failed the nursing exam, would you be on her case saying “I knew this wouldn’t work, I told you to be normal!”

TLDR: Couples counseling!

 I have purchased property in Union City in the past and the property did not get reassessed just because I purchased it. In general, property taxes are not usually related to the sale price. They are the result of the value assessed by the city X some multiplier. My taxes went up every year, but the increase was around 100-$200/year if I remember correctly... 

Recent substantial improvements that were permitted and on record with the city could cause taxes to go up more than the usual. 

@Michael Baffuto

@Sen A.  Good to know about the rent control...

@Juan Cabrera I agree that there are much better places to invest than Union City if monthly cash flow is the only metric. 

Personally I like investing in places that I know well, with value add potential and are within easy commute to NYC - with sufficient cash flow. 

Full disclosure, I don't currently own property in Union City but I have in the past. Union City is on my shortlist of places I would like to buy my next property in the next year. 

@Youwei Chen The Union City property looks like a tear down. Could have potential if you are ready to do new construction. You may be able to build 3 stories - 2 or 3 units. There is limited comps but I've seen gut renovated 2 family selling for 700-800k in this area. Small lot with no setback are some cons. 

@Pearly Tan Try Electric Brigade.