All Forum Posts by: Adam Zacharski

Wanted to post an update on my project and what I ended up doing...

Even though this is an owner-occupied two-family house because I want to rent out the unit to a third-party I can't do any of the work, I think the town views it in the lens of a commercial endeavor(same as a 5+ apartment). If this was going to be my residence or my family were to use it then it could be treated like a personal residence and I would be able to do the renovation work myself. 

I wasn't leaving the bathroom and kitchen fixtures in the same exact place, this is what caused me to have to get architect stamped drawings. I moved the location of the bathtub, vanity, and kitchen sink. 

If I had to do this all over I would;

1) Plan on moving into the new unit

2) Leave the fixture where they are 

If anyone is in Essex County and seeking a good architect let me know. 

@Erika Lopez do you know if NJ requires an architect's seal for specific rehab? Also I personally own the property.

I'm in Essex county with an owner occupied multifamily and I was pulling permits for a kitchen and bath gut renovation. The town told me that its NJ state law that for multifamily properties; 1) all renovations need to be completed by a contractor, including insulation and drywall. 2) signed architect drawings need to be submitted even though the the footprint is remaining the same

I'm waiting for the town's building official to get back to me with where the state requires this so I can read it for myself. Is this the standard that you guys are seeing in NJ or Essex county? 

I provided planned drawings from my designer including finished materials but they were rejected. Also the fact that I'm moving into the unit I renovating, from the other unit, and I can't do the drywall is a little surprising. 

Would like to know other's experience here. Thanks

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $510,000

Two family built in 1924 in a small walkable town. Short walk to train with service to NYC.

What made you interested in investing in this type of deal?

Strong rental market for multifamily properties, good schools, beautiful neighborhood, beautiful houses

How did you find this deal and how did you negotiate it?

Regulators listing and I used a real estate agent. I came up with a price I thought the property was worth and made an offer, seller countered and we settled on a price which I think would still allow for good cash flow.

How did you finance this deal?

Chase 5% Down

How did you add value to the deal?

Gut rehab of kitchen and bath, upgraded electrical, plumbing, steam boilers, and water heaters.

What was the outcome?

In progress

Lessons learned? Challenges?

Too many to list

I visited a few houses yesterday in Monclair, Glen Ridge, and Bloomfield. Its a stong rental market but the neighborhoods vary greatly in terms of socioeconomics.  Everything I've seen is over 100 years old which makes it challenging to add value to chase higher rents and justify the high prices, while we're at the top of the cycle. 

If anyone in the area can recommend a contractor or architect Id appreciate it.

Thanks @Peter Spanos I'll reach out to him. Have you worked with him before? 

By the number of recommendations I guess there aren't any reputable agents? Anyone know an agent who specializes in REOs?

Hi all, 

Can anyone recommend an agent who is investor minded? 

Thanks!  

The Nassau auction happens every February, if you go to the controller's website in January they post the specific days and give you the list of liens for sale. 

I've had success buying them but haven't taken one through to the end yet. I think it's a large numbers game where .5% actually go through to the deed transfer. I'm getting ready for next year by partnering up with more people to buy up a larger pool.

I'm currently going through my first round of investing so I can only speak to what I was told by the county clerk's office. Which is that you have the opportunity to prepurchase that future lien ahead of the auction at the same rate as your first lien. 

I still have a few liens that haven't been redeemed since the Feb 17 auction. Just 12 more months and I'll be able to start the deed transfer process.