All Forum Posts by: Account Closed

Thank you, i'm still in process of learning the NJ market and this peace of info had help.

Darren Sager the new rent law that you speak off, only applies to rent control properties. You made it sound like all Newark properties are effective by this law. I will clear this up, not all properties are effected by this law in Newark. As of October 2014 it states"The Newark city council passed tonight a new ordinance that will make it harder for landlords to raise the rents of tenants in rent-controlled properties." With one or two family homes your fine. My opinion rent control properties have never been in any favor of investing. Why would anybody invest on something they have no control.

Was anybody able to refinance there rental property that has section 8 tenants? And if so, was it harder than refinancing with non section 8 tenants? Some say you can't and others say yes, hoping to clear this up.

Darren Sager the new law have restricted some creative opportunity in Newark but it's still profitable. I am a clueless investor and I do say that seriously because I'm from NYC but I have been doing my analysis, study, physical drive around, research and talking to other Newark investors and came to the conclusion that if you purchase multi family for 30-40k which there's plenty at that price on the MLS and fix it for 60k then section 8 all the apartments, that's cash flow with a fast payoff. this is the strategy that I have focus on that will work in Newark, any other strategy I would not advice. Again you have to have thick skin cause is in the lower class areas but last I check, money has no class standard. Once it's section 8 thats guarantee rent which you would not need to see or bother with the tenants and the best part is that Newark is a landlord friendly city. 1-3 months to evict compare to 8-12 months in NYC, and other class b-c areas average 6 months and time is money. With the new law it's a negative but there's also a positive and oh did I forget Newark has one of the lowest property tax in NJ state?

Welcome to the RE world but NYC will not welcome you to it lol it push me out so I'm investing in NJ for BRRRR in urban areas and you will find out that NYC it's hard.

BRRRR are better than turn key properties. There's a few markets that turn keys might have an edge but overall BRRRR/buy and hold is the smarter decision. Why? 1- BRRRR has higher cash flow. 2-BRRRR has higher equity. 3-BRRRR better renovation. The big key as a contractor I see here that BRRRR helps you sleep better a night knowing you did a nice renovation on that BRRRR property and know everything behind that wall. But with a TK property you will spend tons on plumber for a leak you have no idea where it's coming from, an electrician figuring out where the short circuit or bad wiring is at and a contractor to fix a patch up Sheetrock or chip paint and all while the tenants are moved and living there months down the line. Hope nobody gets offended when I say this but turn keys properties are for people who don't want to do any grunt work. They have the money to buy the property and wants to fell like an home owner and start thinking in few years equity will improve to cash out with profit.

Bad idea to cash out refi on your primary residence. Good idea to HELOC your primary residence. The interest rate would be lower, the loan process and approve would be easier and the amount given would be much higher with no closing cost. Just pull out all the money from the HELOC if you need all the cash.

Eric P. I have BRRRR on my keyword and notice you post up like 30 post with the same topic and description but just changing the location of the city. The BRRRR is not about swing where it works best because it does work everywhere and it depends on you on how you want to structure. I'm going to explain this as simple so hopefully my keyword gets a rest from your BRRRR mission finding what area is good. You want to succeed at BRRRR you would need to calculate what cash flow property you want and equity that's left. From a scale of 1-10, 1 being in the ghetto and 10 being in trump tower, you need to figure out what you will be ok working with. 1 with get you high cash flow but slow appreciation, 10 will get you no cash flow but high appreciation and maybe 7 will get you a small break even with moderate appreciate. It all depends what you want and not what a city could give you because there BRRRR are all over the USA

The Ghetto, that's one of your option to start with that small amount. NY is being overrun by the big boys. That's one area the big boys won't touch but easily feast able if you have thick skin for it.

10 conventional loan limit, then after that is commercial loans