All Forum Posts by: Ankit Duggal

Get a good property management company. Your rental in Edison as long as it is rented to well underwritten tenants should serve you well. You can continue to a forced equity build up through mortgage paydown. Give that is a townhouse, the association will take care of all exterior related issue so it is a safe distance investment in my personal opinion.

Really depends on your broker. If you are paying each other as referral commissions then I do not see any issues with it from a brokerage perspective.

Awesome job Erik. Way to make it happen. Keep it up.

Great analysis Jon.

Brian it depends on where the asset is located as you could pay 85% of ARV if you market research indicates that the market value would accrete in value during your holding period. So if the asset is in Weehawken or Hoboken then I would go for it but if it is not then you should make analysis accordingly as Jon indicated.

Investing and holding real estate in Newark myself. Let me know if I can be of any help.

Welcome Lakhwinder. Congrats and keep it up.

Ankit

yes. where in newark?

Raza
The tenants need to complete what is called an Order to Show Cause to claim issues associated with the property. To make the defense though they would need to deposit all back rent owed.

Now you can do a couple of things (I am not a lawyer so consult your own) as a manager that I have done:

1. Buy them out: Offer them money from their security deposit to move out and close up the issue and not pursue them for bad check law.

2. Keep the eviction process going and advise them that your attorney will charge them civilly, and potential criminally for writing a fraudulent check is a major crime. In NJ, the bad check law falls under the following statue:

N.J.S.A 2C:21-5. Bad checks Statute
2C:21-5. A person who issues or passes a check or similar sight order for the payment of money, knowing that it will not be honored by the drawee, commits an offense as provided for in subsection c. of this section.

The penalties associated with bad check is a follows:

1. CIVIL- Face amount of the check, attorney fees, court costs, costs of mailing a demand for payment, and damages in an amount equal to $100.00 or triple the amount of the check, whichever is greater, but not to exceed $500.00.

2. CRIMINAL- Upto $1,000 or 1 year in jail.

Now your worry about lead paint. They would need to prove that the lead paint was peeling from the walls. You stated you have utilized an encapsulating paint and a signed disclosure as long you have proof of those items then you should be fine from a liability perspective in my opinion.

Ankit

Mala

That zip code depending on what section you are located within trades any where between 6 to 8% cap rates. 4% in jersey city occurs in downtown jersey city.

In that zip code a 2 family at $300,000 is high based on my risk-reward lens

Mala

The best way to determine it easily would be to take the Net Operating Income for the asset and divide it by the market capitalization rate. In Jersey City that rate ranges from 4% (Jersey City Downtown) to 9.5% (Greenville). That would give you an appropriate all cash market value for the buy and hold asset.

Ankit