All Forum Posts by: Aly W.

I just replaced my plastic dryer vent (14 years old) because the plumber that recently installed my new water heater said the plastic was a fire hazard. I replaced it with a foil vent. I didn't know THAT was also a hazard. I clean the lint trap in my dryer after every load.

I'm in contract to buy a rental house and the tenant has her own washer/dryer in there. I'll check if it's plastic or foil.

Does anyone insist their tenants purchase renter's insurance?

Hello tmig,

Welcome! I'm also new to REI. Having a plan in advance makes things easier. Building up credit and savings is the best first step. As far as pre-foreclosures, my real estate agent had shown me quite a few. The trouble with them is that the owners are usually in way over their heads as far as what they owe on the property, and aren't realistic about what their house is now worth. I also made an offer on a foreclosed property, and a short sale. Both were contingent on the banks themselves, and banks are not giving away houses no matter what the market conditions. And they take a loooong time to get back to anyone on their offers. Usually they just ignore the ones they don't want to accept, and rarely counter-offer.

I'd suggest you use an agent and have them look for houses where the owners have some equity and flexibility. Your agent can look up their tax records and see how much they owe on the property vs. what they're asking for it. Then you'll know if it's even worth making an offer.

Having just made an offer on a rental property with existing tenants, I am wondering about this myself. I'll have to check NJ law on it, but I plan to use my company PO box for rent collection.

Aly

I think I just found the great deal. I saw it a couple of days ago and again tonight and made an offer. It was counter offered, and I agreed to the counter. So we'll see if they officially accept. Then the fun will really start I'm sure!

Aly

Hi Scott,

Welcome to the site, I'm new too.

I envy you living in Portland for the amazing Craftsman homes. I was there in October and loved the architectural styles. You don't see much of that at the Jersey Shore.

Hello everyone! I've been lurking (i.e., researching) here for quite a while and would now like to take a more active role. The information here has been incredibly helpful. I'm a newbie to investing. I own my condo and am ready to invest in rental property in central NJ.

Well, I like to think I'm ready :D

I've made a few offers in the last 6 months, mostly on bank-owned or upside down properties, and have learned there is very little flexibility there. In the meantime, I've been saving, reading, researching, and saving. Did I mention saving?

Mike, as I noted above, I did include the taxes, insurance, and an estimate of monthly maintenance. Since the tenant wants to stay and would sign another lease, there would be no advertising or vacancy cost for the immediate situation.

Some of the other expenses I hadn't accounted for. What is the difference between maintenance and entity maintenance?

I'm coming up with $1450 for the mortgage, taxes, and insurance. Even with $100 budgeted for monthly maintenance, there is still a positive cash flow with $1650 for rent. And that's if I paid the full asking price. What numbers are you using to get a huge negative cash flow?

Thanks Mike.

The asking price of the house is $225K. Taxes are $3500 a year. The rent is $1650, of which $470 is paid by the tenant, $1180 by HUD. Tenant pays all utilities except water and sewer and is responsible for lawn care and snow removal. The tenant is coming to the end of her 2 year lease and wants to stay but has told the listing agent she cannot afford a rent increase.

When you say it's the landlord's responsibility to ensure the house passes inspection, do you mean the current landlord? He knows what they've done, and I've asked my agent to find out if he will modify the porch back to it's original state. I can't see how he can sell the property, with or without HUD tenants, as that porch bedroom is a code violation.

This would be my first rental property. I would not have chosen a Section 8 tenant, but this tenant has apparently paid consistently for 3 years. Are there enough red flags here to run from? :)

I'm a new member and am very glad I found this forum. I'd appreciate any input on this topic.

I've been looking at single family houses as rentals, and recently saw one that has a Section 8 tenant in it. The family is a mother and 2 teenagers. The mother said she is single, but her boyfriend is clearly living in the house. Whether he's legally living there according to HUD is unknown. The asking price of the house and the total rent paid makes it appear to have very good cash flow. I haven't found out yet why the seller is selling.

The tenants want to stay in the house if it's sold. The tenants, the listing agent, and the current landlord have stated that the tenant's share of the rent has always been paid on time for the last 3 years. That can be verified so I'm not worried about it now. What I'm worried about is the HUD inspection. The tenant turned the screened porch into a bedroom, which is clearly non-compliant. They insulated the outside walls with plywood (so the outside door is now covered), put down a ratty carpet, and have an electric space heater in there with their bedroom furniture. Whose responsibility is it to convert it back, and if it's not converted back, I can't see how it will pass inspection. HUD's or the city's. And can HUD decide the house is no longer worth the current rent, and reduce their share?

The house isn't destroyed but it is a dump. There is a new water heater/furnace and the mess seems to be all cosmetic, but again, is it the seller, the buyer, or the tenant that has to make sure it will pass HUD's inspection? Does HUD even care about cosmetics? If the tenants ever leave, the house can be renovated to a good resale potential.

Thanks in advance!
Aly