All Forum Posts by: Peter Kandra

Welcome Iman. I buy in the Trenton area. If you get any owner financed deals up this way, let me know. Pete

I'd be interested in that. Markets and economies vary greatly from 1 state to another. Plus we could share and network resources wherever possible.

Mike,

It's not so much the AMT that's causing the issue.
Your W2 income (I'm assumming that's what's over 150K), exceeds the limitation for decucting up to 25K in passive losses. You don't lose these loses, they get carried forward until you either sell or have enough passive income to offset them. Hope this helps.

Pete

The original post asked if it was OK to have a side deal with the tenant outside of the HAP contract. Both Mike and I pretty much explained no. Not everyone may be as familiar with terminology like rent to owner, and utility allowances like someone who has section-8 tenants is / should be.
Different PHA's may have slightly different rules too, but the common thread would be no side deals.

A bad area doesn't necessarily equate to the buyer needing a sub-prime mortgage. If your investment strategy is buy and hold, the current mortgage market problems won't last forever. If your exit plan is more short-term, there's seller-financing, lease options, etc. Plus these houses are generally less expensive to begin with, so buyers coming up with 20% may be possible. In New Jersey, there's also state and local programs to assist first time homebuyers, there's FHA loans, etc.

Potential consequences could be jail if there was a fire and someone was hurt or killed and that area wasn't zoned as a legal dwelling unit. I'd also think your insurance company would refuse to pay any claim. I'm sure there's lots of ways to get around having the extra unit, but it's simply not legal.

Welcome Evan. There's a few of us here from NJ.

I'm from Jackson and focus on investing in the Trenton area.

MikeOH, my section-8 PHA has pretty much the same rules. I believe what atarget means is that if the rent to owner is $1000, the tenant may be responsible for paying $450. I have 1 property where the rent to owner is $1000, section-8 pays $569 and the tenant pays $431. Now if I had an agreement with the tenant outside the HAP contract that they pay me an extra $100 a month, then that would be fraud. I've heard of a few landlords in my area who tried that and ended up getting dozens of units dropped from the program...it's just not worth it.

Hi NJCommercial.
I'm thinking of starting to invest in commercial properties to balance out my residential holdings. I've started looking at both pure commercial and mixed residential / commercial in Mercer county.
Any advice ?

If you get any in Trenton, especially 08611, let me know.