All Forum Posts by: Ro Maga

You may want to do a search in BP and read through past forum discussions.  This is a recurrent topic/question. 

It's awesome that you're beginning to think about investing.  It sounds like you're at the beginning stages of the process so I'd encourage you to keep learning and reading and to not give up if you cannot buy right away.  In addition to what has been suggested, I think you want to talk to a lender to figure out what your options are at the moment and/or what you need to qualify for a loan down the road.  Most college students don't have the kind of financial stability and credit histories lenders are looking for, but then again, it sounds like  you're not the typical college student. 

Good luck!

@Johann Jells,

You know, I read that line about a 6% maximum about a month ago as I was going through NJ, Newark, and Jersey City Rent & Rent Control Ordinances, but  I cannot recall exactly where.  In any case, in places where rent control applies like in Jersey City and Newark there are limits, and even in your building/unit is not impacted by rent control, a judge is likely to frown upon fees that deviate radically from those established by the local rent control ordinance. As @Mark Langdon said, the fee has to be reasonable to a judge.

Just to give you an example of the limitations, here is Jersey City's Rent Control Ordinance on late fees: "No charges shall be permitted for late rent, whether termed a late rental fee or interest on rent paid late, in excess of Thirty-Five ($35.00) Dollars, returned check fees in excess of Thirty-Five ($35.00) Dollars, or any other similar charges."

https://www.municode.com/library/nj/jersey_city/co...

I'm going to have to disagree with the previous post. It'd be nice to be able to impose whatever fees as long as they're in the lesser, but there's a limit. In fact, the máximo you can charge is not that much. You'll find that information in NJ's Truth in Renting booklet (in the link in pp), which, by the way, you have to provide to your tenants. In any case, in NJ the total amount of late fees for the entire month that you can charge cannot exceed a certain percentage of the rent. I believe it's 6% per month, but please look it up.

String smells are one of the toughest things to fix and they really impact rental outcomes. So your landlord is in for some serious expenses/losses. If I were you, I would not take it lightly and appreciate the fact that he at least warned you about it so you can try to lessen the impact the damage will cost you.

Beware of renting rooms "under the table." The kind of tenants that will agree to such a set up, are likely the kind you will need to evict sooner or later; and without the appropriate rooming-house license, you're only asking for trouble. Then there are the issues with insurance, city fines, code violations, etc. If you're hoping to get into landlording, why plan to do it in a shady way from the get go?

If it's a SFH in downtown and is has both, parking and a backyard and it's "only" listed for $900k, the house probably needs updates and the sellers are inviting a bidding war. Assuming the house is in ok condition and relatively close to the Path, chances are it will sell for more. Because there's not a lot of inventory for families that would like to "have it all" (3 bedrooms, parking, backyard) without living to the suburbs, there will always be demand for these houses. In this market, you'll be lucky to get it for asking price. That said, if you're looking at it purely as an investment, there are many other better places to park that much money.

The numbers by themselves are not all that striking, but it's impossible to say much to you without knowing anything about location. "An hour from NYC" -- what does that even mean?

Your son and you should be on the podcast! Who knows how to make that happen?

Congrats on the triplex! Now, what you/he is proposing to do -- pay 4 months in advance-- is illegal in NJ. This guy is trouble. And the day you try to go to court to event him (or his extended family who will probably follow him), you'll be on the wrong end of what was always a bad deal Find a qualified renter. This guy is not it.