All Forum Posts by: Damian Seguen

@Trent VanHorn

I faced the same question in Nj and tried it. And it may seem like more cash flow, but you are limiting your renter pool, and will 100% run into trouble with certain roommates. The day you want to go back you will have to sit and wait for 1 lease to end, and then bank on them leaving on time and the unit undamaged.

Some people will not get along, Most tenancies will not end smoothly. And the bills get crossed when a vacancy over laps.

I believe a good tenant is worth $150-$200 a month (if the expenses can handle it).

Every penny I try to pinch out of a property usually cost me in the long run. The extra money you’d make would just be paying you for more landlording duties.

@CJ S. First property, there are 2 roads you can take. If you want to move on Real Estate now you can but it will require you to do a lot of your own work, learn your property and become a landlord. Second Road is about 2-3 years down the road after more saving and have all the management and renovations paid for !!

If You play things right and, build that 10k to about 15-16k, let it sit in an account 30-60 days untouched and go get a pre-approval for an FHA mortgage from a bank or Mortgage Broker. Start looking for Multi-family(2-4 units).

In Nj and FL, I’ve been trying to be as close to 100k per door with a DOOMS DAY SCENARIO of $1000 per month rent (my units currently rent $1500-$2100 each). I go $1000 per month(minimum) on units with $1200-$1300+ potential because I’m seeing Mortgage figures around $700 every 100k mortgaged.

I bought my first 4 Family for 345k(that was collecting $800 rents from 2 units only for the last 25 years)

Put 12k Down, and needed a separate 9k(3Months of my potential mortgage payment) to sit in an account untouched. The key to the multifamily is you are allowed to use the potential rents collected as your income to qualify for the Loan. I spent my first year Renovating “my owner occupied” unit and playing “Musical chairs” with the apartments as I finished and/or leases expired. Keep in mind it’s was about a 2-3 year process. Used My own weekly pay check and credit cards to renovate.

All in all took me 3 years of work(raised rents from $800 to $1500-$2100), made a ton of mistakes and only one eviction($600).

But Home just appraised for $620k, waiting on Cash Out Refi Terms as we speak.

I can’t see why you couldn’t do the same thing with a 2 Family for $150k range.

I come from nothing, so securing my first building and believing I’m giving that building Mortgage-free to my kids one day is what I wanted to secure first. It’s also a safety net, I and the people closest to me will always have a home no matter what. And I have something to borrow against for future deals.

Don’t sugarcoat your numbers, I use ABSOLUTE WORST CASE SCENARIO numbers when I analyze. I don’t do the raising other people’s money thing, I use my own and my own credit. When and if the deals make sense to me, there is no Losing. Just be meticulous, and always try to offer a great home when renting.

GOOD LUCK!

@Amy A.

If you put the unit into the “Hotel Program” they handle everything as long as your unit fits their Cookie cutter look. That means most customization to your unit can be forgotten about. New buildings will come furnished and they handle ALL the tenant turnover, marketing, cleaning and basic repairs. But like I said, these buildings are FOR PROFIT buildings. Most if not all profit is soaked up by buildings maintenance and Hotel Program Split. With the Hotel program you will need nothing else. I’m actually meeting people looking to rent my units and explaining they expect to AirBnb it, and will handle everything. They just often ask for a lower rent, but on a secure lease/contract.

What does your end game look like? Selling condos in general is hard, but Condo-Tel’s will almost offer no conventional financing, limiting your market to strictly investors to sell to.

And the closer to that 40 Yr inspection you get you’ll see a slight drop in sale prices because most buildings will require a special assessment for something.

Hey BP!

I am a Buy and Hold investor with properties in North NJ. I went to University in South Florida and have now moved to So. Florida after buying renovating and stabilizing my properties up north. Besides looking to get into a property down here, I have been helping several friends of mine with their first flips and buy and holds alike.

I purchased my first property at 26, in 2017 and self manage, self renovate and self List vacancies. Before that I managed Commercial Multi Family Buildings in NYC.

If there is anyone starting from scratch on their first property, I know things can get overwhelming, I hope I can be of any service to you. My friends are normal young guys, sometimes they just don’t want to make a phone call to the city, or ask for multiple quotes for work. And that’s where I am helping them.

From Drywall/Floors, to design, to bookkeeping, painting, anything or just general questions. I am here to help.

Hope to connect and network with a few Investors in So. Florida.

@Esmeralda Florez

First, best of Luck on your RE Journey.

I haven’t done Out-Of-State investing, seems very hard your first property. I have only bought and renovated while living there and now moved out of state while i continue to manage.

If I could advise at all, it would be do your first property closer to you. Even if it’s 3-4 hours away, but your first one will be your scariest and sometimes just being able to go and see the place yourself will ease that tension.

RE investing is just being professional word Problem solver, learning your first few mistakes within a drives reach is manageable.

@Matthew Fleck

Great job Mat!! I grew up in Uptown North Bergen, and now own and manage my property on 81st street and another Multifamily in Bayonne. If there is anything you ever need or a reference in the area just let me know!

Best of Luck!

@Lady Cerezo

Hi Lady, I manage properties in NYC. From experience thru the company and our investors. It depends on the borough. Our Buildings In ChinaTown and Harlem Get no wiggle room. But we have been able to correct certain violations with an extension in the Bronx.

@Sebastian Roy

Wish i would have had this forum when i first started, This is the story of my first Property. I hope my struggles and triumphs can bring you some guidance.

RUN, RUN AWAY!! (just kidding)

I purchased my first property in NJ. A 4 family with a 3.5% FHA Loan Lived in the one I was renovating, then played "musical apartments" until I moved away. 100% Self managed and continue to do so. All units are listed For Rent By Owner.

A multi family on this scale is very easy. You will 100% be able to manage it and take care of everything while you are there. I live in So. Florida and still self manage. I take about 4 trips home a year and it only gets scary now between tenants(if they don’t renew), but your team of handymen, landscapers and relationship with long term tenants are the key to it all.

Enjoy the ride. Being at the property your first year will allow u to learn everything about your property. It’s dings it’s dents, what it does when it’s cold, and when it rains. Etc. you’ll be surprised how many different types of light bulbs there are.

ideal situation have each unit individually split for water and hvac, electric.

You’ll be tempted with the idea of coin operated W/D(They cost more to buy and fix than you will make on them. Up the rent $50-75 and u will make more because they’re $300 to replace).

(Common question) I was never “checked on” to see if I lived at the residence.

Early on Most will make mistakes with Security deposits and have bad leases, but you will grow and learn. If you are ever uncertain, spend a little bit of money and pay a lawyer for Legal advice or documents they work best with.

I speak to my tenants directly and they know communication lines are always open and that the property is my baby.

There’s a warm fuzzy feeling in doing this. It becomes your responsibility to provide safe, quality housing for people and families. That also brings responsibility that not everyone is cut or for.

Advice: BEFORE ALL ELSE. ROOF, HVAC and Plumbing! Outdated cabinets will rent but not broken HVAC, Leaky roofs and old plumbing.

Also REGISTERING THE BUILDING WHERE IT IS NECESSARY(If not evictions and possibly inspections can get complicated)

If those 4 are handled early it is smooth sailing!!

Good luck!!

@Amy A.

Hello Amy,

I own Own And Self Manager Multi families in Nj, and live in So. Florida in a colleagues “Condo-Tel.” He owns the unit in a building which doubles as a resort style Hotel.

I was fascinated by the concept and this particular building, Each unit is a 2/2, but one bedroom is Hotel room style with private entrance, balcony and bathroom, the other is living room and kitchen bedroom bathroom with connecting door.

It Seemed like a very Solid concept for investors, so I moved into the building I hope to buy in, to do some hands on research and learn the day to Day.

Like everything else there are Pros and Cons. As any condo you are a prisoner to your HOA(Not always a bad thing). The condoTel will usually offer a Hotel program that allows you to sign over your unit to the hotel to book your room. They give you a certain amount of days for personal use. (What I have seen in my circumstance) The profit from rentals is usually heavily split in the hotels favor and goes toward your Monthly maintance first. Maintance $$$ are very high but everything is always being maintained. A lot of utilities are included, insurance as well, staff always available.

If you were to self book guests, All guests will have to be registered with the front desk and you usually pay a per day fee for each tenant,( disguised as a Key tax) which eats at profit.

Under most condo Guidelines, they will not allow longer than 3-6 Month tenancies (Short term rental requirements), and some units are deemed Residential for Long term only. Be sure to ask.

Definitely do your research, One unit is not a cash cow and requires a lot of turn over maintance, a solid Local Manager will make things a lot easier for you.

I have began to manage and look over several vacation rentals in Broward and Dade County. If there is anything I can help you with let me know.

Best of Luck!

@Kalina Carey

I have 2 Multi’s in Hudson County, NJ so far.

4 Fam in Bayonne and a 3 Fam in North Bergen, Self Managed.

Vacancies take about 3 days to fill(Zillow and Facebook), mostly because of the Commute into Manhattan being so close.

The price tags of everything listed will always be very high but don’t let it scare you off, there are still little gems hidden off market and plenty of Older families looking to cash out and retire. Make sure you know ahead of time if you have an Oil tank on the property(Don’t Just take their word, spend for the inspection)

I have personally stayed away from Irvington, Newark and the Oranges because I don’t know the area that well, but some of those $180k price tags for 3 Families are hard to pass up. The numbers will never lie. Do your due diligence and look into recently rented units in the area for Price comparison.

For a new investor I would advise to look into Montclair, Lodi, Moonachie, Lyndhurst, Ridgefield Park, Rutherford. Not too sure about the amount of available 3-4 Families but they’re great neighborhoods with plenty of 2’s with solid rental history, great schools and huge appreciation.

Best of Luck!!