All Forum Posts by: Alexander Flores

@Account Closed I am from Ocean County and hopefully close on my first single family on the 28th that I am going to rehab and rent out. Any questions let me know, I am not a pro about anything but I have learned a lot the past two months.

Yeah, you would create one LLC for each property. Easiest way is make the address the name of the LLC

I'm treating this all as a business so if it costs some extra fees a year to save my behind from being sued and losing everything why not pay the fee? You can get sued and lose everything on your first property or you can lose it all on your 100th property so why risk it?

Hey Jason, I am from jersey and my CPA and lawyer specialize in real estate. Their advice is create an LLC for each different property that way each property is safe from each other and yourself. To create an LLC in NJ it is $125 one time fee and I think $50 per year. As long as your the only person in the LLC, the LLC is taxed the same way you are, the IRS recognizes the LLC as being just you so you aren't taxed differently or more heavily. Just what I have been told and do.

I am working with Rehab Financial for a buy and hold in central jersey more towards the coast. Very helpful and easy to work with.

Not sure about the loan limit but you can only use it about three or four times since it is for first time home buyers. Just call a big bank or local bank to apply. Most of them offer the FHA program. I did mine through Bank of America.

@Chris Cozzens FHA loan is like a regular mortgage except you are only putting down 3.5% instead of the traditional 20% down payment. This means your mortgage payment is higher than if you put 20% down and you also pay something called PMI (another payment tacked onto your mortgage for not owning 20% of the houses' worth). You also promise to live in the home for at least a year.

An FHA 203k loan is very similiar except there can be repair costs put into the loan amount.

I have been preapproved for them before. At a 200k purchase price of a house in central jersey(where I am from) the total payment with taxes and insurance was estimated at around $1600. 

FHA is a great option to house hack with or get started if you do not have a large sum of cash. Hopefully this helped.

@Elaine Gee The group that meets regularly in Red Bank is very beneficial. @Mark Scarola runs the meetings. You should check it out. 

NJ does have high taxes but in my area they can range from 2-5k a year for a 3 and 1. Really depends on where you look in the state. If you're smart and look for deals you can find them almost anywhere. Good luck.

@Jon Goehring Welcome to BP from another NJ investor. Check out everything this website has to offer. Good luck!