All Forum Posts by: David Czech

I would wait at least until the spring of next year. You’ve mentioned that on average you’re seeing prices well above what they were last year, and that’s how it pretty much is across the board. 

I think that once the NY exodus settles down and we see an end to our worldwide situation,  prices will stabilize and correct to some degree, but don’t expect them to correct to pre-pandemic levels. I’m spitballing, but I think this will change consumer spending habits and NY’s ability to get its act together will dictate the prices of neighboring markets. 

Currently, yes, prices are overinflated. However, Northern NJ real estate has always been on the higher side. But I wouldn’t bet on the idea that they will correct to pre-pandemic levels next year. While I’m sure there will be some kind of correction, I expect it to be minor as NYC is not going to fully recover next year. We just don’t know the extent of the shift that is taking place in Northeast region. 

If you are looking at a multi family, inventory is very low and you will most likely pay a good premium over a single family, which are still overpriced given the current situation. Unless you find a deal, I would hold off on purchasing right now and make an assessment again sometime next year. 

I don't mean to burst your bubble of anticipation, but from what I'm seeing, a post corona market in the Northeast is going to include low inventory, overinflated offers, and bidding wars. This is especially true given the Feds low rate announcement. I'm not seeing that change for at least the next year. 

As far as areas go, look towards central NJ (Union county). Proximity is close enough to NY for any commuters looking for their mass exodus opportunity. I would take a look at Edison / New Brunswick, which is a bit south but also within NY commuting distance. These towns are also close to Rutgers University campus. 

The only issue with the financial crisis was that it was triggered by something fundamentally wrong within our financial system: Toxic mortgages. Now with more regulation there is less risk of that happening. 

Personally, I'm expecting the mass exodus from major cities to drive prices up in general, especially in suburbs. 

This might also be a bit of a personal finance question as well but wanted advice. Is there a set amount I should have in reserves to feel comfortable in case something catastrophic happens? I'm a bit paranoid so right now, I'm putting away everything I receive from rent I receive and have enough for lets say, a total roof replacement, if necessary. 

Should I just keep putting this money away or are there smarter things to do with it? I guess I'm also putting it away in case a tenant moves out but that's my mind also going crazy. Any advice would be appreciated. 

@Alison Niko I second a lot of these posts, multifamily market is very competitive and houses are taken off the market very quickly, I too used an FHA to purchase but to be honest, I think I was lucky. If you have any towns in mind, let us know.

I currently invest and live in Central Jersey. If you have any questions, feel free to reach out!

Not hard whatsoever. Just had to take off the front panel and it looked like a battery that just needed to be unplugged and replaced. Didn't require any extensive digging. Flexed my engineering muscles (not really I have a business degree from an engineering school I just enjoy the humble brag). 

So this is a bit of a lessons learned / warning when it comes to repairing certain elements in rental properties. Very interesting so I thought I would share it with everyone: 

I got a call last week from one my tenants stating that the AC was not working in one of the units. I took a look, noted that while the AC was working, the airflow wasn't the greatest. I called up the AC repairman and they corroborated what I initially thought. AC worked, but something was preventing the maximum airflow from reaching the 2nd unit. So it turns out they recommended replacing this part called a capacitor that from my understanding, initiates the startup of the blower within the AC and allows the air to start flowing. It also controls the power / efficiency of the blower itself. The repairman stated that the capacitor in my system wasn't operating at max effectiveness and proceeded to charge me $200 to replace the part.

I said no thank you, found the part on Amazon for 5 bucks. I am not kidding. Literally $4.99. Changed it out myself, airflow is improved. This was a complete joke. Beware of such companies that will markup parts to this degree. Just wanted to share with everyone because I thought it was hilarious.

I've recently noticed that there is some land for residential developments for sale in LA that is relatively cheap given the overall housing market there. I am from the east coast and have the intention of either holding on to the land or eventually building something. From this particular offer, I've noticed that the price of the land has increased over the last 5-10 years. My idea is given the influx of recent new construction in the area and high value of neighboring properties, the value of the land will only increase. Does anyone know what other factors I should be looking at? Would this be advisable?