All Forum Posts by: Stefan Tsvetkov

Yes, correct. Currently non-owner occupied 3-units or higher are rent controlled in the town. Permitted increases are 3% or CPI whichever is lower.

@Sebastian Garcia Triplexes (as well as quadruplexes) are not rare in Union City, I personally own two properties in the same units category in the town. 

It appears to be among the towns most rich on 3-4 family properties in NJ. The latter seem rarer in West New York and North Bergen and then Jersey City is rich on them as well. Multifamily properties in general are a characteristic of densely populated urban areas, and Union City is definitely no exception to this.

@David Flores Your description of Union City's rent control rules is not accurate. Please see the following link for the exact set of rules as of 2017 with a 2018 amendment:

Union City Rent Stabilization Ordinance 2017

2018 amendment

@Lucas Mills The question you pose has a nearly arithmetical answer. The capital required to attain a certain surplus cash flow is a function of:

1) Property profitability (net cap rate after expenses)

2) Leverage (debt percentage)

3) Cost of capital (principal+interest percent of purchase price).

I derive the following formula. Feel free to use in your analysis.

Capital_Req = (1 - Debt_Perc) * Surplus_CF * 12 / ( Net_Cap_Rate - Debt_Perc * Prin_Int_Perc )

E.g. (1 - 90%) * 4000 * 12 / (10% - 90% * 5.75%) ~=100k in Capital required

A 10% cap rate, owner occupied property at 10% down payment and a 4% 30-year fixed mortgage through a no-PMI portfolio lender (the latter translates to ~5.75% principal+interest percent) gives you ~100k in capital required to generate 4k in monthly cash flow (assuming moving out of the owner occupied after 1 year).

The above is not just theory rather purely arithmetical, I have achieved nearly the same cash flow at my first property with 10% cap rate, owner-occupied leverage, and comparable cost of capital.

Refinancing to a higher appraisal (due to value add or a lenient lender) or a high-LTV Home Equity Loan can improve the results even further. Let me know if any questions.

It is one week before the event! If you are attending and didn't RSVP yet please do, thank you. 

Anyone interested, please sign up to our meetup.com group as well and RSVP there: http://meetu.ps/e/GPSqj/zCBtn/f

@Robert Timm et al. The most vanilla way for a 30-year fixed rate mortgage in an LLC are portfolio lenders, small local banks typically in your state that hold the loan on their portfolio. I am currently looking to buy properties in an LLC and the above is my preferred mode of financing.

On the flip side, these lenders at least in my area tend to be rather operationally inefficient, in which case may have to get commercial or other financing first, then refinance into the portfolio loan. Good luck.

@Robert Timm

Hey All! I need referral for an eviction attorney in Hudson County, New Jersey who would handle eviction on the grounds of security deposit breach, late payment of rent, and rent nonpayment, and who does not charge a separate fee for each and every notice mailed and/or court date (especially the former).

I started working with an attorney, though the fees get pretty steep even under a single court date as notices add up (and assume total may double if a second court date is in order).

I need either a flat charge for the work done, or at least not a fee for each of multiple notices that get sent. Thank you in advance.

Hey All! I am excited to host our first Networking Social 19th June Wednesday 6:30pm @ Proper West, 54 W 39th Street in Midtown Manhattan.

Our group links finance professionals with real estate investors to partner on active and passive real estate investment opportunities.

This will be an informal friendly meetup to get to know each other with no specific agenda. There is no fee to attend.

Please RSVP at Meetup.com ( http://meetu.ps/e/GPSqj/zCBtn/f ) before attending.

Look forward to meeting you!

@Sean McCluskey Yup, it was nice! Though not exactly debt free now post the HE loan. At present, struggling with a lender that "miscomputes" DTI as adding marginal debt and income components of currently owned properties to baseline debt and income numerator and denominator. This as opposed to netting marginal debt and income for a given property and subsequently adding them to the overall. Ignorant :) though also bureaucratic and unable to shift their process even if knew the latter is erroneous.

@Sean McCluskey To be frank my DTI before obtaining the Signature FCU fixed rate HE Loan was nearly zero, and then was increased by just the HE loan payment to something well below the 40% mark. So never asked what their DTI limit is and also not sure it might differ between a HELOC and a fixed rate HE loan.

On another note, unclear what you mean under "I heard from Signature that their minimum DTI is 40%". To me DTIs are a maximum only.