All Forum Posts by: Daniel Gonzalez

Great meetup. Awesome meeting everyone who attended and sharing knowledge/experiences. Looking forward to future events. 

@Joe Kern PM sent.

@Jeff Mitchell You will most likely need an electrical engineer to supply you with the panel schedule, riser type, and sizing. 

Maybe the architect knows of one that can quickly provide you with this so you can start your project. 

@Adam Zacharski That is very strange that they are requiring the work to be completed by a contractor. Since it's your personal residence you should be able to complete the work on your own. Granted you still need to get the required inspections done since you're pulling permits. 

What size is the multifamily, this could play a factor. Certain towns treat 3 or more units differently than just a duplex. 

I've known architects in NYC that will review the plans and provide a stamp for a set fee and have no other involvement in the project. Maybe your designer knows of someone in NJ who is amenable to that idea. 

Good luck.

@Alci Martinez PM sent.

@Michael Peters that tax spike hurts the cash flow. Check with the town first. I know some towns in NJ limit it to 2 or 3% and others say it can't be more than the CPI. The type of property can also be a factor when it comes to rent increases. Is it a single, triplex, mixed-use, etc? 

Aside from increasing rent try and appeal your taxes and shop your insurance around. 

On a side note. When I was a renter a few years ago my landlord increased my rent by a decent amount mid-lease. He sent a certified letter and explained it was because of a tax-water-sewer surcharge via the town ordinance. 

I hope this helps. 

@Niomi Lebron a few quick pros and cons regarding FHA.

Pro: 3.5% down, can purchase 1-4 unit, FHA 203k can wrap repairs into the mortgage.

Con: MI, cannot drop the MI, must be your primary residence for 1 year, can only have 1 FHA loan at a time.

If you want to househack look into other counties with lower-priced duplexes or an SFR and get roommates. Personally, I've never been a big fan of condos, but you could househack a 2 bedroom condo with a roommate. For conventional, for an SFR I've seen 5% down, you'll have MI but it'll be lower than the FHA's and you can drop the MI once you hit 20% equity, for a duplex is 15% and 3-4 is 25%

I'm not saying you should time the market, but things are very hot in NJ. Maybe waiting and saving more wouldn't be the worst thing. You might miss these low rates but you might be able to get a better property in an area you want to live in. If the rates are that important, that they make or break your deal you probably shouldn't buy it. 

The biggest piece of advice though, do not feel pressured to find something because your lease is ending. Talk to your landlord, they might be willing to put you on a month to month. When I was a renter that's what I did. I spoke to the landlord and explained my situation. They put me on a modified lease and it worked out for both parties. 

@Jan Pauley housing all over NJ is really expensive now due to the pandemic. There are bidding wars on most properties. The two areas you mentioned are very desirable due to the proximity to public transit into NYC. 

Depending on how short-term you're looking at you could get in flip something and get out before everything calms down but that is very risky. You might be better served looking outside of those areas but still in those cities for example the iron-bound section of Newark or jersey city heights in JC. 

@Chris Brillante Are you sure the offers the seller was presented were apple to apples? The other buyer could have offered above asking and waived the appraisal since they knew they were offering too much/it was a cash deal. I wouldn't do something that incurs undue risk and something you can't recover from just to win a deal. The market is hot now and there are many casual investors making purchases because money is pretty cheap.

Have you thought about strengthening your offer? Bigger earnest money deposits, faster closing times, and waiving a home inspection can all help you have a stronger offer. Granted waiving the home inspection can be a risk if you arent comfortable assess the condition of the home. 

I've been beaten on offers simply because buyers are offering way above ask, at numbers that don't make sense, at least for me. Keep running numbers and looking for deals you'll find something that makes sense. 

@Humble Wellington Unfortunately I don't think there is much you can do about her not having a lease with the previous landlord, that's water under the bridge. You as the new landlord should go by the book, send her a notice to quit and a notice of rent increase. The last thing to note is to be careful with the rent increase due to Covid. I'd need to double-check but I recall there was a hold put on rent increases for homes with federally backed mortgages.