All Forum Posts by: Phillip Fernandez

As long as you occupy one of your units you are exempt from rent control and can set the rents at whatever amounts you’d like. What I don’t know is: (1) does that apply if the previous owner did not occupy and his tenants are under rent control currently.  (2) whether what i said applies to buildings with four units or more (mine is three). Call UC they’re helpful over the phone. 

I also live in UC and had a similar situation as you. I bought a legal three family (was converted from a 2 family by the previous owner). The state had it registered as a three family but only after closing did I find out the town didn’t when my taxes for the year increased by 33%. I spoke to three lawyers about appealing and was told I didn’t have a chance because my new assessed value was still significantly below my purchase price.  

Such is life in Union City, unfortunately. 

Two things: 1) definitely pursue legal and see if they can help. 2) I wonder if you can fight for a tax abatement given the “significant” improvements you’ve made to the home that warranted the tax increase. 

Hi Craig, have you tried to call the rent control board? I’ve actually found them to be very helpful in the past. I also own a 3 family In union city and occupy one unit, so im not subject to rent control. But, like you I haven’t seen clear guidance about what happens when you occupy a previously rent controlled 3-family. 

Assuming you get the go-ahead to bump up the rents; have a good sense for what type of tenants you have and whether they would be receptive or hostile towards your intentions. If they react negatively to your attempt to increase the rents they may choose to either not accept or not pay rent at all and force you to evict them. Union City is very pro-tenant. 

Hi Giovanni, I own a multi-family in Union City after having moved over from the Bronx. I’m a big fan of the area for the reasons you stated; I’m within a ten minute drive to midtown Manhattan and prices are relatively affordable compared to Hoboken and Jersey City.
Multi family prices in UC vary significantly depending on where it is in the “gentrification” cycle; properties by the reservoir and Palisade ave. are A LOT more expensive then properties more in-land, north, and west. 
Be mindful on what your investment strategy is, if it’s to “house hack” you’d be comfortable up to a 3-family to avoid rent control, but know that once you move out and rent out all 3 units your 3-family will become rent controlled (I’m in this bucket). 
Taxes are very high in UC, especially for multi’s that have had permits opened and closed. If you’re buying a new construction, make sure there’s a tax abatement strategy in place and please budget yourself for the inevitable year 5-6 when you’ll be responsible for 100% of the property taxes. 

My wife does real estate in the area if you ever want to discuss opportunities further and if you just want to chat, I’m happy to help as well. 

Hi @Maurice Etienne, I used the HomePossible program in North Jersey through PNC Bank. 

5% down for a three-family / triplex. Overall, I'm very happy with the program except for the misleading website, which seems to indicate that you can re-appraise and get out of your PMI if LTV < 80% based on MV. However, PNC did not allow me to do so, stating that the Freddie Mac guidelines says that PMI must stay on until I hit 65% LTV.

Sorry for the delay! My home was not distressed, I Imagine that it would have been a challenge to get underwriting approval had it been. I'm not aware of any grants to help with down payment / closing costs, except my suggestion to try and get a seller concession to cover closing costs. 

I may have mentioned it before but don't rely on the HomePossible website to be clear on the PMI requirements. From reading the text on the website I was under the assumption that I could appraise and get rid of my PMI based on the market value of my home and I was told by my servicer otherwise - that for a triplex I would need 65% LTV. Fortunately for me, my amortization schedule at closing had the PMI dropping at 78% LTV and my bank promised to honor that however they won't let me re-appraise based on MV as I mentioned. I'm stuck waiting for another 5 years or refinancing to save ~$35K.

Hi Kevin, 

I actually have a triplex that I bought with the Home Possible program two years ago. I know for a fact that rental income can be used to qualify you for the mortgage, at least in my case this was frequently discussed between my mortgage specialist and the underwriters at the bank.

What really attracted me to the home possible program was the ability to cancel PMI without having to refinance (like an FHA). However, I'm currently in a back-and-forth escalating disagreement with my bank that claims I need to reach an LTV of 65% to remove MI versus what I believe the home possible guidelines show on their website, which is 80% for 1-4 unit properties.

As you further dive into this process please make sure to have your bank document the conditions for cancelling MI. And, if you don't mind, please share what you find in case I (and maybe others like myself) can benefit from any clarifying info.