All Forum Posts by: Serena Tillman

Hi all, my husband and I are under contract on a property in Montclair, NJ that has a 2-BR unit in the backyard that is currently being rented for $1800 a month but was denied a zoned permit in 1950. Any idea what the process would be for getting it legally zoned? What would it cost? Is it worth it, or do we continue to rent out the unit without making things official?

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Hi Jose, I've started to do a bit of research for a team in Jacksonville and would be interested in connecting.

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Does anyone have experience filing or an ADU permit with their property (either one you already own or one that you bought)? The triplex I'm looking at has 2 units in the front and a detached studio in the back that has been illegally rented in the past and would need an ADU permit. Does anyone have experience with the process, cost, and whether it's worth the hassle? Do you need an ADU permit if it is a short-term rental/AirBnb?

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Originally posted by @Alessandro Cardito:

@Serena Tillman I did something similar in Hoboken, and I came to the conclusion that the only investment that can make sense if you dont want to bank on appreciation is buying and househacking, ie buy a multipropriety, live in one and rent the other part.

Reach me with a PM, we do have a Hoboken/JC group you can join

Good to know! I'll send you a PM.

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Originally posted by @Daniel Haberkost:

@Serena Tillman when you’re first getting started it’s easy to want to jump right in immediately out of excitement. But buying a duplex that’s cash flow negative with the hopes it will appreciate is a dangerous game and will likely lead to short career in real estate investing. I know a couple of wealthy people who have had success doing this only because their primary income was substantial so they were easily able to support the negative cash flow. But I’m talking about people with $30k+ of disposable income a month.

My advice would be to make it a rule that you only buy properties that cash flow, period. Keep looking and I’m sure you can find a property where the numbers work!

Hi Daniel, my husband and I definitely don't have $30k+ of disposable income a month! Closer to about $10k... but definitely don't want my real estate career to be cut short because I made a decision based on emotion.

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Originally posted by @Theresa Harris:

I'd look carefully at your numbers and not worry about PM fee, if you know for sure that you will be managing it. I would think about increases to property taxes and vacancies. Are the rents at market value, are there any upcoming repairs (roof, hot water tank, etc)? From your description the value will likely go up and you are looking at keeping it long term. Do you have extra money in case your numbers are off?

Hi Theresa, thanks for your reply. The rents are at or very close to market value, but I could probably make some fixes to increase it a bit more. We have flexibility to cover about $1,000/mo of negative cash flow.

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Originally posted by @Bridgette Delva:

@Serena Tillman as someone who is very much a risk taker, I also know the numbers don't lie. As many other BPers have mentioned, don't let your emotions lead your deals. If it's not a good deal now, there's absolutely no guarantee that it will be a good deal later. In fact, it might be worse later.

If this area is truly up and coming as you mentioned, are you sure you've taken the correct rent figures into consideration? One thing that we've found is that if you may be able to charge more if you put a little more into the finishes and fixtures.

What if you did it as a fix & flip, would the deal make sense? Did you use a BP calculator tool? I'd be happy to take a look at your analysis if you have any doubts about it but adding in a % for PM fee is recommended, but not required when you're self managing.

Thank you Bridgette! We're hoping to keep it in the family rather than sell it for a profit right now. But could definitely make some fixes and raise the rent (probably about $300 more between the 2 units - they're already paying market rate). I used the rental property calculator tool and would love if you could look at my analysis - I can PM you.

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Hi everyone! Newbie here, excited to purchase my first property. I recently did an analysis on a duplex in Hoboken, NJ on a street that is very popular and is up and coming. I just realized on my analysis of the property that I didn't implement a property management fee (even though we would be the ones managing - I know it's an important number to take into consideration) and our cash flow is now negative. However, the area is definitely hot and this would be less of a property of investment in the short-term but moreso wanting the building to be in the family for our kids. Does that make it worth it? Or is it still something we shouldn't consider given the numbers? I'm wondering if this is just me being excited for my first property or if it would actually be worth it given the future potential.

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@Allan C. awesome, thank you Allan! I’ll be sure to check it out.

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@Joe Villeneuve And what would that be? I’m a newbie to this.

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All Forum Posts by: Serena Tillman

Serena Tillman has started 5 posts and replied 35 times.

Post: Under Contract on Property with ADU with no permit

Post: Jacksonville, FL (Southside and Beaches) Virtual Meetup

Post: Filing for an ADU Permit - Cost & Hassle

Post: Am I too eager? Or is it worth the risk?

Post: Am I too eager? Or is it worth the risk?

Post: Am I too eager? Or is it worth the risk?

Post: Am I too eager? Or is it worth the risk?

Post: Am I too eager? Or is it worth the risk?

Post: What to Calculate in an Expensive Area with low Cash Flow

Post: What to Calculate in an Expensive Area with low Cash Flow