All Forum Posts by: Abi O.

I'm in the process of refinancing my 3 family property located in New Jersey. Current interest rate is 4.25%, I will be moving down to a 2.625% rate. Current mortgage balance is $280K and home value is $580k+(~ 49% LTV). Its my primary residence as I live in one of the units.

The house needs about $100k for renovation work. Since I will be paying closing costs for the refinance anyway I am considering taking the $100K at the time of the refinance closing and holding onto it until I need it.

Things to consider:

-  The timing for when I will spend 100K is not yet determined. 

 - If I do a cash out for, I am hesitant to invest the $100K in anything long term as there is a chance that I will need the money as early as next year.

- If I don't end up needing the money for a couple of years I am annoyed by the fact that I will be paying interest on money I'm not using. This is the main reason I'm considering a HELOC.

I am aware that a HELOC can be more expensive from an interest perspective and will have it's own set of closing costs outside of the refi I am doing already. However, I am trying to determine the best way to financiallly analyze how to value which option makes more sense.

Any suggestions from you gurus?

Hi Everyone -

I am looking for a good counter top dealer (i.e Quartz, Marble, Granite) in the North Jersey area (perhaps in Newark?). Need to get a counter top for my rental unit so I am looking for very competitive rates.

Any suggestions?

Thanks!

Hi Everyone -

I am looking for a good counter top dealer (i.e Quartz, Marble, Granite) in the North Jersey area (perhaps in Newark?). Need to get a counter top for my rental unit.

Any suggestions?

Thanks!

Thank you everyone!

I ended up keeping the rent the same and giving the tenant a payment plan to make up the difference in the security deposit. She was very appreciative and agreed to renew on the spot. Guess that confirms that rent is a really good deal.

Thanks again!

Hello All 

I would appreciate getting your brilliant thoughts on a topic I am making a decision on.

Situation:

 I inherited a tenant who had been in my building for 5 years when I purchased my 3 fam building 2 months ago and was transferred her security deposit at closing. Her lease is up for renewal and in NJ I am legally allowed to ask tenants for 1.5x rent. I received less than one months rent (0.7x one month to be exact) at closing and I am considering asking her to make up the difference when she signs the renewal.

For some context

- She has lived in this unit for about 5 years so I am not sure how to discern what damage she caused during my ownership vs the prior owner. However, I believe it may be risky to have such a low amt of security from her (i.e. limited recourse for future damage) hence the question.

- This may come as a surprise to her since her rent has stayed the same for 5 years and I would essentially be asking her to cough up almost $800 around the holidays which may seem insensitive.

- Her rent is at least $150 below market. I believe she knows it, but I am not planning to raise rent since I have disturbed her quite a bit with the reno I am doing in my unit right above her. Also want to do some renovations on the property first to justify the increase I plan to ask for next year. And to be honest, I don't feel like dealing with a vacant unit right now if she protests.

My questions are:

- Should I ask her to make up difference so that I am holding 1.5x/rent and have some sort of recourse for future damage? Does it even make sense since it may be hard to tell when damage was caused?

- Is asking for security more annoying than raising her rent? I think not since a security deposit is technically her money that is supposed to be returned to her, but curious to get other thoughts.

Thanks in advance

This is great - Thanks Steve -

Some responses and some further questions

1) The coordinates of the easement was included in my survey. The survey company also sent me a copy of the deed from where comments about the easement was verbally written. If this is what you mean by do i "have" it, I believe the answer is yes. Also, was there something you were suggesting I clarify once having it? 

2) Your point about whether it was paid for before is a good one as I was advised by others to charge the neighbor to use the driveway and was looking into how that was possible since I had never heard of that before. But to your point, that only works if there was no easement and thus no right of my neighbor to use the driveway. Since there is an easement, it is clear I need them as much as they need me...unless the % of easement on each of our property (i.e. the 20% vs 80%) matters in terms of negotiating leverage?

3) Did you have any advise re: setting up a mx agreement? Wondering how you would suggest who manages and pays for the mx (i.e. snowplowing, fixing potholes) without one? 

Hello -

I am in process of closing on a new investment property and the driveway is shared (i.e. my neighbour and I need to use the same driveway to get to our individual backyards). The driveway is 80% within my property boundary lines and 20% within theirs. 

There was an easement established over 20 years ago that gives my neighbor the right to use the driveway to get to their backyard. Also, I am speaking with the survey and title company to clarify the exact coordinates of the easement and boundary as well as confirming if anything has been filed with the deed. But its unclear if a) the easement was paid for and b) who is legally responsible for the snowplowing, Mx of potholes, etc.   I'd like to set up some agreement to ensure its clear who pays and does what.

Does anyone have any experience part or all of this?

I do!  will DM you!

Amazing!  Great job! So motivational!

Hello -

I will be be closing on a 3 Fam property within 2 weeks in the Bloomfield, NJ area and am looking for recommendations for contractors that can help with an upgrade in one of the units. The property has 3 units - 2 of the units will retain the old tenants and the vacant unit (2br/1ba) is the one that will be upgraded for me to move in. The building will be owner- occupied and I will need to move into the unit within 60 days of closing so I need someone who is reliable and able to get work done quickly. Not looking for anything fancy since it will eventually be fully tenant occupied in a couple of years, but want work to be neat, and look nice enough able to generate market rent. I will also eventually renovate other two units once tenants move out, so if work is done well, I am happy to use same contractor for additional work. This is not a 203K, work will  be financed by cash.

Please send all recommendations my way. Thank you!