All Forum Posts by: Amanda Lee

 That last suggestion is exactly what my husband and I plan on doing - going to check out other units in the area. Here's a counter-question, What do I do in a gentrifying area, where I want to please both the middle class and "working class" (not sure what term to use here, regardless I'm open to any paying, responsible tenant) but other apartments in the area aren't catering to that middle class taste?

@Bryan O. it's a c-d becoming a c-b neighborhood. It's hard to tell what they want, because I'm from an upper-middle class area and have moved to a gentrifying area. I renovated my unit to reflect a millennial, modern taste, and everyone who has seen my apartment really loves it. I just figured taking bits from my renovation that made the biggest difference, one being recessed lighting and updated kitchen really made all the difference. Flooring isn't an issue because it's 80% hardwood, The grout in the kitchen and baths could use a scrub though. 

One of my biggest issues is not seeing myself living in this space. I'm trying to make it palatable for me but it just doesn't have to be, but from my perspective, if I would pay 1500 for rent, it would have to be nice. I will definitely take your suggestions into serious considerations.

Some of the rents that people charge are offensive, and sometimes insensitive. In a gentrifying area, as a minority, I am sensitive to the demographic. Charging top dollar for an apartment that isn't top dollar worthy (yet) is perhaps not greedy, but certainly ambitious... Ambitious enough to be impractical.

Thank you all. You guys are giving me awesome suggestions!

Hello,

My husband and I are new landlords, just bought our first in October. We are located in Newark, NJ in an area where a 3 bedroom goes for 1300-1800 and a 2 bed goes for 700-1100 ish. When we bought the place, the tenants were paying $700 for the 3 bed and 550 for the 2 bed (I know). When we moved in, we gave them 60 days notice that the rent would be 1,100 and 900, both way below market, as described above. They can't really afford the rent, and now want to leave, which is fine. We want to get the most out of the apartment (really only enough to cover expenses, we're not greedy), but we did a very nice renovation on our apartment (first floor. we are owner occupiers) and don't want to spend too much money on getting the apartments ready for new tenants. Does anyone have any advice on how we can try to get as close to market rent as possible with only a small investment of maybe 5-7k? Both tenants are extremely clean and haven't damaged the apartments, but the apartments demanding top dollar in the area appear to be completely renovated, which isn't something we can do.

My thoughts were:

1. Fresh paint.

2. Recess lighting.

3. replace kitchen cabs.

Anything helps!

Thanks

Hi guys,

this is my first ever post to BiggerPockets. I want to say I love this site, the podcasts, and all the great advice.

So, I'm trying to purchase my first investment property. I'm really excited to have found a 2 family that isn't a piece of junk and just needs some cosmetic touch. so here's the deal. I made an offer, which I thought was extremely fair for both us and the seller, and the seller's counter offer sucks! I gave him an offer based on the comps in the area but I'm just really boggled at his terms.

(keep in mind this is seller financing)

Here's my offer:
Selling Price: 20,000 (It's in an up and coming area in Virginia)
Down Payment: 5,000
Interest: 5%
Duration: 5 years

Seller's counter-offer
Selling price: 22,000
Down payment: 10,000
Interest: 5%
Duration: 5 years
CREDIT REPORT (my credit is good and I have plenty of disposable income each month)
$500 of warranty (which is $640 yearly)

My OBVIOUS or OBLIVIOUS (haha) questions are:

1. My deal makes him more money, WHY is he asking for 10K?
2. if I had 10k to put down, I could buy a WAY better property in the area, is he insane?
3. How do I negotiate the down payment to be lower and get him to accept my terms? We are communicating through our realtors.

A little about the house:
2 family, as stated earlier
Kitchen: no stove, no oven, needs complete update, it's hideous
PAINTED HARDWOOD FLOORS. UGLY.
horrible paint job overall
no heating system. gas heater was taken out (which makes me wonder, because it's not foreclosed)

I have not yet had the inspection done but I have an AWESOME inspector who will rip this place apart (figuratively) if I tell him to give me every detail to deduct from the selling price.

A little about me:

1. was just approved for a $15K line of credit I was going to use as a reserve to pay for updates and appliances (I want to pay most out of pocket though)

2. 5K to put down.

3. another property I want on the same street is 9,000, needs about 25k in repairs, but is really nice, but one family. My partner and I like that one too and were considering tapping into the line of credit to pay for it.

Please help me guys. This has the potential to be my first baby. I have dreamt about investing in property since I was a little girl. I don't want to give this 10,000 AND my credit report!