All Forum Posts by: Patrick M.

There is a mixed bag in NJ. Some believe and rely on an untested rule that for showing an apartment a tenant must give consent.

That being said you have every right to go in and inspect before hand. That is different from showing. Besides my town requires a CO for every change over so I would foresee at least 2 visits/ inspections.

I personally would give appropriate notice to do an inspection and decide whether it would be more advantageous to clean/paint/repair and show it. Lose a months rent but be in a better position to make more. If it is just about cleanliness it is a different story. 

$50 here.

I was first turned on to Chicago Controls after a search sent me to BP. I had just taken on 2 buildings (plaster/lathe) and the old owner had the mercury dial thermostats. After blowing quite a bit more insulation in the attic I replaced the thermostats in one building with the Chicago controls.

I agree with what others have said about tampering, they can all be messed with. What I like about these is that they control where the heat is set to and default to turning the heat down:

6:00 AM – 9:00 AM 70 Degrees
9:00 AM – 5:00 PM 65 Degrees
5:00 PM – 10:00 PM 70 Degrees
10:00 PM – 6:00 AM 65 Degrees

At any point in time the heat can be put up to a max of 71 degrees, and will hold this until the next scheduled adjustment. (NJ you must heat to 69 during waking hours) I saved hundreds of dollars each month my first winter compared to the prior owner ( I did also insulate the attic too).

But look at the beauty of it if - it resets itself. Best was a couple weeks into it I got a call from a tenant who waned to know why he was unable to get it up to 75! Yikes. How many times do you think they reset those dials before going to work or bed?

So the downside of the "tamper proof" claim. On the other building the apartments likewise have a boiler and the old 3 wires. One of those inherited tenants opened it (which anyone can do- changing battery, etc.) and crossed the wires so that the boiler would go continuously. Again- this is something they should try to address. I had to put tamper tape around that thermostat and I do a weekly inspection with that tenant. But that was what I inherited...

I still regularly walk the grounds and if I see a window open in the winter I pick up the phone... I don't see it much now. I also have made it a point to never go above 70 degrees in my house during the winter (unless we have a fire going), so I know it is perfectly suitable.

@Alexis J. I think it is a nice report and has a lot ton of statistical information, that I don't think I would use, but would be nice for a seller or buyer.

I follow a lot of the online listings to get comparables to set my rent. Ultimately, I am the best at doing this because I know the inside and out of my property and as it compares to others. Perhaps that is different in different areas.

The one big problem I have with the report is demonstrated on . The list of comparable properties runs the gamut from 400 sq. ft. to 2300 sq. ft. For my analysis that list does not comprise comparable properties... even if the room numbers are the same. And I imagine, with those numbers, it is lumping houses in with apartments.

I am in a bit smaller community, but I have an amenity heavy, high rise and also luxury apartments that can skew the numbers quite a bit. They are also happy to sit on vacant apartments waiting for their price to be met. I also question the data used: 

I have been actively aware of online rentals in my area for the last year and a half. When I go on rentometer and go through the comparables I know that the comparables are largely based off of Zillow et al., and that price is whatever they removed the listing at- regardless of whether it was negotiated down or reduced offline, if they did not enter it.

Now, as an active watcher of Zillow (and searcher of craigslist) I know how long a specific apartment has stayed on, I can see when and if there was a price change and if I save the property it will always be reviewable even if it rents and is taken off. I am also in a far better position to compare the properties then an algorithm. Again- perhaps this is me having too much time and being in a smaller market. Ultimately I am interested in quickly filling a vacancy for the highest possible rent, not getting the highest possible rent despite a vacancy.

Perhaps the paradox for a lot of hands on landlords (multi-family landlords?) is that we would need to know what the proprietary software/algorithm is based on to convince us it is something we are not better able to do. Because, again, I think it is based on the exact same data we digest on a daily or weekly basis. But again, for a buy/sell market analysis it looks very nice. 

I have just signed up for Cozy based on the reviews here as well as your teams active participation in the threads. Thanks again.

My pleasure. I should add that we install our own cabinets, so I've only used Home Surplus for design and purchase.

With All Granite they will have the price based on the style of granite, the more unique the higher- but there is no guess work, it is broken into a couple of different categories. Only additional pricing would be for a decorative lip or backsplash. You get a nice, free sink and all installation is included in the quoted price. They are a very large operation and they work like a well oiled machine.

Best of luck.

@Raj G. I use All Granite and Marble. They are first rate- huge selection and an easy to understand price structure. I have shopped around and they always are the best bet. It is really a smooth operation. 1. Go in and give them the dimensions and pick out the granite- get an estimate. 2. have a cashiers check for half the estimate when they come for the template. 3. Have the remaining adjusted price when they come to install the counter and free sink.

For cabinets and vanities you'll get a great deal at Home Surplus in Keyport. The cabinets are much better made than the big box stores. You will likely have to wait on line, but I have not found a better price. You will have a more limited selection but I have never had a problem finding cabinets I like, and the vanities are much, much better than the big box crap.

Good luck

Reporting the $20,000 of capital improvements will depreciate, so yes it will decrease your income a wee bit and will do so for the next 27.5 years.

those are some good ones @Aaron Howell. I always wanted more than a 2 family because of problem of vacancy. 

Cons: 1. 4+ family in NJ is subject to state regulation/inspection/tenant protections. Not a big deal- but changes the dynamic.

2. Financincing of 5 family or more requires a commercial loan. (This could be a pro- it could motivate seller to carry the note)

Victoria- We have always been in the same boat. Our savings go into 401ks and 529s mostly, so it was really our best option. We had built up a lot of equity and we really were itching to get an investment property. We wanted to have the money set aside for the lowest rate. So a HE worked out better than a line of credit. It also kept us honest by knowing we could afford to pay it w/o depending on the income of the potential property and ensured we would not go above our means.

Additionally- we had the money at the ready. And so began what seemed like a long and tortured search for a property.... When we lost out on our last bid on a beautiful 2 family I was ready to scream. Around my area you simply can't compete- there are too many people paying outrageous prices and offering cash on 2 families. I was ticked off when my "mentor" told me we didn't get it because it wasn't meant to be. Argh...

But, not 4 weeks later we had a 5 family fall into our lap and we were able to get it done because we had the cash on hand and the seller held the note. When I look back on the numbers from that 2 family- I would have struggled to realize a profit and I would be stressing at a vacancy... Wasn't meant to be.

(After another awesome event) 8 months later we refinanced our mortgage to pay off the HE and other necessary debt. Took advantage of a 3% rate at 10 years. We are working away and having a blast.

I agree it is a personal decision. My wife and I decided we wanted to go this route a couple years ago. We pulled out a home equity at a low rate and placed it in the bank- less than a line of credit. This ensured we could handle it as we shopped around for an investment property... if not I could pay it right back.

It was one of the best decisions we have made as a couple... and it keeps getting better.