All Forum Posts by: Daniel Green

Definitely :)

I'm out of attorney review on a 2 family investment property in Englewood, NJ. This is a pure investment property. I won't be living there. Any recommendations on mortgage sources that have good terms- APR etc. Downpayment would be 25%.

Appreciate any help you can provide.
Thanks!

Dan

 We're out of attorney review and the sales contract states that the building must be clear of tenants as a contingent of closing.  In the contract I said I would offer the owner $2K per apartment if that will help them move.

There is a 4% cap on increasing rents in Englewood.  $1,700 seems low for a 4 bedroom apartment in Englewood that I plan to do minor rehab on- Paint, sand/stain wood floor, add wood floor, rehab kitchen with new cabinets, counter tops and appliances.  Replace trim and door, electrical hardware/face plates.  I think it's quite possible to get $2300.

I offered each tenant $2K to move out by the end of February.    I actually offered it to the current owner who will then offer it to each tenant.  The closing is contingent on the tenants moving out.

I have a sales contract in and an accepted offer on a 2 family in Englewood.  I'd like to rehab each apartment.  I was told when negotiating with the sales agent that the seller would ensure that both apartments are vacant when we close.  So when I wrote up the contract (I'm a real estate agent) I put closing contingent on both apartments being vacant.  Now the seller has come back and says she can't agree to the tenants leaving.  There are a few things I'm thinking about:

- If the current tenants remain I figure I will increase their rent.  Current rent is $1700 per apartment.  I plan to increase this 20-25%.  They are 4 bedroom apartments and this is well within the range.

- I could offer the seller $3K per apartment additional to offer the tenants to move out before the closing.  

These are month to month tenants who pay in cash each month.  I was told that the current owner has given notices to the first floor tenants (not sure what notices these are) that the first floor tenant rips up in front of her so it sounds like the relationship is not the best.  Any ideas here? It would be a great cash flowing property if I can do some light rehab on the property and get it back on the market.  I'd like to rehab, rent and refinance a year out.  Thanks!

Tracy- any update on your deal. I'm bidding on a Hubzu property now and very curious how your deal pans out. I'm bidding all cash but want to add an inspection clause just in case. I'm running a title search before bidding to make sure the home has clear title. I'm guessing the final price will be around $225K. Repairs around $60K. ARV about $360K if all goes well.

Wow- taxes must be incredibly low. I'm amazed your PITI is only $580 a month.

Is this done?  If not let me know :)

In the past I've sent my tenants a brand new lease when they want to renew.  Do most people do this?  I've been thinking about simply sending them an addendum to sign indicating the new rent amount etc.

Also- after the term of the lease expires do you think it's better to have tenants as a month to month or on a lease?