All Forum Posts by: Mark F.

When federal investigations are done, hardly ever is all the information released and hardly ever is it encapsulated into an article from MSM. Take that article with a grain of salt and know there was a lot of hours put into the investigation. Only real way to know is when the charging affidavit is released or requested by FOIA. Not saying he's guilty, just saying you know about 5% of the actual facts from that article alone.

If you want to know what really happened, request the indictment.

BP already removed the podcast episode.

Quote from @Lin Ding:

@Shawn Mcenteer I thought PMI incurs as long as I'm putting less than 20% down.

To increase rent revenue, I'll need to raise the rent on the long-term rental and rent 3 other bedrooms by room via mid-term rental or STR is what I'm thinking plus I'm househacking. I hope to refinance to

Under 20% and you do incur PMI. However with 3.5% FHA the only way to remove PMI is to refi out of the loan into a conventional, ask me how I know. With any other loan under 20% down with PMI, you can have them remove it without refi'ing out once you hit 20% equity.

Are you 100% positive JC doesn't have RC laws? You've checked the JC code ordinance page? Because they do and when you move out, you have to abide by it. And STR is illegal when you move out too. So it'll work while you're living there but once you move you're subject to their dumbass laws.

You said you're optimistic with numbers, you need to be conservative with them. If not youll get into trouble. You want to raise unit ones rent but you haven't mentioned what kind of lease they have. M2m or still in a year lease? Unless it's m2m, you can't raise it at all. Did you factor that in?

Couple tips. Don't close on that place until you have a copy of the closed permit in hand. Full stop. Working with NJ towns can be a nightmare. Take others advice who do not invest in NJ with a grain of salt when it comes to LL tenant laws. They are very tenant friendly and most do not realize how strict they are. Hell even half the people from NJ on this forum don't realize.

On ot being renovated, ill just echo what Shawn said that you make your money on value add buys.

Shawn is experienced obviously and you should listen to his advice as well. You said your attorney said 30 days notice, true, if they are on m2m. Do you have a copy of their lease? You need it to confirm before they close. Renting out the other rooms in your unit is smart as you'll be CF negative pretty bad if you don't.

Personally I agree with him that I'm not a fan of this deal. What's average rent for your unit when you move out? $2400 and let's say $3k for your unit LTR is $5400 and that sucks for 815k PP even in NJ, even moreso at 6%. Unless you can get almost 4k in rent for your unit as a LTR once you move, I'd pass on this deal. Id like to see around 7k a momth in LTR rent roll to consider it. For comparison, I am getting 5k on one property in total rents and will be getting just over 5k on another when I leave and I bought them both for well under 800k. 

Oil tank isn't a big deal IF they remove, and get a NFA on the soil. if you don't know what that is id suggest researching oil tanks on BP. Tons of great info on here.

Not trying to be mean but keep it real. NJ REI can have a steep learning curve but we benefit from high rents, high appreciation, low vacancy and a fairly recession resistant market.

The major red flag to me is you said its actually a legal duplex but you expected a 3 unit. That is not an issue for a newbie. What else did they not clear with the town like permits and work? That's a deal breaker IMO. You can fix all the issues yet the town can tell you nope, its only a 2 unit. Plus foundation and extensive electrical issues again are too much for a first timer without construction experience. I dont see one reason to continue with this purchase. And ditto on it costing only 60k.

Quote from @Account Closed:

Quote from @Randy Smith:

Quote from @Sean Willette:

Hi Randy, are you currently investing in your backyard? My brother and I are just breaking into multifamily investing and are trying to pick a market. We live in California, but not interested in investing out here for obvious reasons. Our goal is to research 3 different markets and target one of the 3. That way we can hyper focus on that one market. Anyways, long story long AZ is one of the markets on our list. Once we find our market the goal is to build a team and start evaluating and underwriting deals in that area. Just curious what markets you’re currently investing in or plan on investing in? Appreciate any feedback 🙏🏻

 @Sean Willette I invest in Phoenix (my backyard), Tucson, TN, and other various states through multiple funds I invest with (Open Door Capital, Ashcroft, Spartan Investment Group etc.  I'm always looking to partner and help in any way in this space.

@Randy Smith: Is that Opendoor Capital or do you mean Opendoor Technologies? I can 't find a Ticker Symbol for Opendoor Capital

 He's talking about Brandon Turners company, ODC. https://odcfund.com/

He's not talking about investing in companies on the stock market but ones that are usually open to accredited investors only. Another reason to click on that link I posted and listen to that BP Money episode. It will answer most of your questions.

Quote from @Vincent Plant:

@Randy Smith

I feel like I am in the same place you were. I have paved the way with SFRs and STRs, but I am realizing too that the passion is not there.

I have capital and am ready to turn the page.

Can you walk through a bit HOW you went down this road? What steps did you take? Were your goals? What did you do exactly to open these doors?

I feel like I’m walking into the complete unknown when it comes to passive investing.

https://www.biggerpockets.com/...

I started investing passively last year and while I love it, I still want to invest actively for the foreseeable future. I could see myself switching down rhe road to make passive investments.

I had one to the tune of $10,500 about a year after I purchased a duplex. I posted about it but long story short was it was a retaining wall deemed in disrepair by the city. The reason it wasn't caught on inspection, etc was because it wasn't able to be seen in the backyard. Out of sight= out of mind. My first big lesson in real estate.

I do semi annual inspections on my units and when I hire a property manager, I will make sure they do it as well.

Quote from @Lisa Chen:

Hello, everyone, through a connection I know two houses about to be foreclosed or has been foreclosed. I wonder if anyone knows a trustful wholesaler, who can work  acquire/flip the house before the bank put into public auction. 

please advise. thank you

 Most NJ wholesalers suck honestly. These guys are the only ones I'd recommend.

http://www.freedomhomebuyernj.com/

Well one of the reasons is you can't access this section easily anymore. If you search by region at the top while in mobile view, the only options you see is Jersey City and Newark. Noticed a few posts in the JC forum about general NJ stuff. Wonder if the mods can fix that.

Quote from @Jalpa Sojitra:

Quote from @Yahav B.:

Hello! I own in Union City, NJ and would love to join a meet up :)

I also live in Hudson County. Would love to hear about your experiences and share mine!

 Does Union City has rent control ?

To say they have rent control is an understatement. Go on the city website and read up. Or search on this forum as I've posted in a thread as I looked at a 4 unit in UC. I would never even consider a multifamily in UC due to their insane rent control ordinances.

In northern NJ it seems as its still a sellers market but a lot of sellers are just so used to a certain price and buyers are unwilling to pay so it just sits. More price reductions but still plenty of sellers too stubborn to adjust accordingly. If priced well, it getd gobbled up. I imagine once the summer is over sellers will finally wise up.