All Forum Posts by: Mala S.

Can anyone recommend an insurance broker to get insurance on an owner occupied 3 family property in Hudson County New Jersey?

Thanks!

I have never had problem finding highly qualified tenants without an agent. 

I just advertise on Craigslist. I specify in my ad that an excellent credit score and income is required as well as documentation (paystubs, bank statements, references, etc) and background check (costs about $25-30)

I rent in a B neightborhood, I charge above market rent for the area but keep the place in top-notch shape. But keep in mind, we are 15 mins from Midtown Manhattan so there is a lot of demand here. 

I am in contract to purchase a multi-family home in Hudson County, New Jersey. Can anyone recommend a reliable mortgage lender? 

I am seeking a conventional mortgage but I need a reliable lender that can close quickly (within 30-45 days) - Timing is particularly essential for this deal to work. 

Direct lender is preferred. (I am assuming that going through a broker will complicate and prolong the process.) Credit score and downpayment is strong. 

I also need someone who is highly responsive to text messages and emails. 

Any recommendations would be greatly appreciated!

Thanks in advance! 

Mala

@John Errico  nice to see someone else in Union City on Bigger Pockets!

I am house hacking in a 2 family in Union City since last year and so far its been going great. I love the neighborhood and its very convenient to NYC.

Before buying this place I was really interested in Jersey City (Journal Sq and Jersey City Heights areas) but found those areas to be really competitive. I made several good offers and was outbid every time. But this was last summer. I am not sure if it is still like that or if it would be easier to buy in the winter. Also, beware of the properties with buried oil tanks, there are a lot of them in Jersey City - usually the ones that sit on the market for a while.

I think Union City is still off the radar enough that you can still find good deal here. Its also very safe, kid friendly with parks and farmers markets and in 15 mins you can be in Midtown Manhattan.

I just bought a duplex in Hudson County, NJ a few months ago and I am house hacking (renting one unit while I live in the other).

My numbers are really tight too. I would be at about 100-200$/month cash-flow if I moved out and rented both units today. But these were my reasons for going through with the deal anyways. Some of these may apply to you so I thought it might be helpful to point them out:

1) I spent a whole year analyzing properties in my area. I even expanded my search to surrounding areas and analyzed those properties as well. I sent out yellow letters and saw properties on the mls. I made several offers and was outbid every time. My point is, by the time I found my property, I had a good idea of what was out there and what was a good deal or not, and how much competition was out there for the "good deals" (which usually ended up in a bidding war). Make sure you have done the same. You will feel more confident making a decision if you have done this.

2) I knew I was going to have to live in the property. There were many better deals in areas that I just could not see myself living in. Maybe I could suck it up for a year and live there, but 5 years? no way.  To me this is reducing the amount of exit strategies I have (i.e.: continuing to live in a property if I need to is a strategy. Being forced to move because I don't like the neighborhood or my family hates it could be a big problem. I may still end up moving in 1 year. But the point is that I don't have to. I like where I am living enough to stay 5 or even 10yrs - this gives me more options to deal with life's surprises.)

3) Better neighborhood also means a higher quality tenant. Personally, I feel more comfortable with this kind of tenant. I like it when tenants are picky and check to make sure everything is working and complain right away if something is wrong. They also pay their rent on time, and keep the place clean.

4) I saw better deals that needed a lot of renovations. Despite being an architect, I just didn't want to take on a huge renovation at this time. Even if it meant getting a property under market value and gaining equity through reno. I will likely do this next time though. But this time around and bought a place that was recently renovated and well maintained.

5) House hacking has drastically reduced my personal housing costs. This allows me to save a lot of money every month towards the down payment on my next property. I would never be able to do this if I had continued renting my previous apartment and kept waiting for a "really good deal". 

All that being said I would ever do a deal that has negative cash-flow. There has to be something better out there and maybe you just haven't looked hard enough. 

I hope that helps!

It is really sweet that you are wanting to help your family member. However, I really think that buying a house for them to live in for a few years ( I am assuming that you are considering this a temp situation since you are running numbers for after they move out) is not a good idea. It would be much better for them to rent a house right now.

Consider this alternate scenario: what if your family member rented a house. And you invested your money in a different market with better ROI. You could buy a house that actually cash flows a few hundred dollars per month and that is in a location that is more convenient to where you are located now. You could use this cash-flow to help out your family member with rent for a few years. Once your family member is back on their feet (same time frame you were thinking that they would move out of the house), you are left with a house that was actually a good investment in a location that is better for you!

Also one more thing, think about how a strain it would be on your relationship if your generous gesture ends up being a money pit for you...

Yes, you would really be counting on appreciation for this deal to be able to break even in 5+ years, which really depends on the neighborhood and even block and is still a risk. I don't know much about Essex County neighborhoods. You should speak with someone who knows the neighborhood well. Hopefully someone on BP will chime in.

Personally, I think you can do better than this and I would keep looking. 

I am currently in contract for a duplex in Hudson County and therefore spent the past several months researching and looking at properties in the area. The conclusion for me was clear that multifamily is the best way to go in Hudson County. The numbers just don't work with SFR. I don't know if it is similar in Essex County, but if you haven't tried it yet, you should run the numbers with multifamily properties in that area.

These numbers are really tight, but this is often the case in NYC area. It really depends on what neighborhood this house is in.  Neighborhoods can change block by block over here so unless you are really familiar with the area you should be very careful. But even if the neighborhood is up and coming it is still always a risk to count on that.