All Forum Posts by: Dan Rivera

Hi,

Can anyone recommend a solid CPA in Northern NJ? Someone in Hudson County or near West New York, NJ.

Thank you.

@Aristone Louxz I would again agree with @Diana Tian. Market price of $1750 seems about right, but it varies based on several factors. How updated is the unit? How close is it to public transportation? How many sq ft.? If you really want to get a sense of where to price your unit, you can ask a real estate agent, search through Zillow for 3-bedroom apartments, or even check out rental or sale listings in person. Then, compare them to your property.

I'm in the process of buying another 3-family w/ a partner. All units are 3-bedroom and roughly 1000 sq ft. After renovation is complete, we're projecting rents to be $1800.

@Aristone Louxz Congrats! Sounds like a great deal. I would have to agree with @Diana Tian. A 3 bedroom could rent for more, even a moderately maintained one.

I recently purchased my first property with an FHA loan in West New York as well. I have a 3-family with a 2-bedroom, 1-bedroom, and basement studio. The 2-bedroom and studio were recently renovated when I bought it. I'm currently living in the 1-bedroom, but I'm renovating and converting it to a 2-bedroom. The 2-bd and studio currently rent for $1300 and $900. I raised the rent on the 2-bedroom by $100 a month after I bought the property. I think it's still under market, but I'd like to keep them as tenants.

Hi @Ryan Cheung, I'm an investor from West New York. I recently used an FHA loan for a 3-family in the area.

1. My lender used the appraised rents for vacant units and actual rents for the 1 occupied unit in their 75% calculation, so you should be fine on that front. 

2. Rents - For 2 bedroom, 1 bath apartments (or any unit for that matter) the rent really depends on the location and condition of the unit, which we don't know. However, unless you're in a really nice area of Union City, I'd say $1500/month is at the highest range of what you might expect to get, today. And you never want to analyze a deal with the best case scenario. To be conservative, I would use $1300/month as your figure. Anything more is pushing it IMO. 

3. Rent stabilization question - I don't see why you wouldn't be able to keep rents the same when you leave.

4. Homeowner's insurance - Did you factor this into your expenses?

5. From an initial pass, this looks like a decent deal. Best of luck!

Hi Claudia,

In general, I would be wary of taking the real estate agent's estimates of market rent. In my experience, they are much more on the optimistic end of the spectrum. How many bedrooms does the 2-family have? $2000+/month rent is typically associated with some (or a combination) of the following: a great location (along Blvd East, by Lincoln Tunnel, etc.), newer renovations, 3+bedrooms, unit in a new construction condo, or 2 bedrooms with 2 bathrooms, garage (parking is a nightmare).

I tend to stay away from coops altogether because of all the red tape. They limit your ability to rent to tenants and usually have very high HOA fees. These HOA fees, coupled with your financing costs, make finding cashflowing coops an issue. Lenders also want to make sure a certain percentage of the coop or condo units are owner-occupied. This percentage is an important figure to ask your realtor.

That's my 2 cents. I hope this helps you with your search!

It's a tough sell at $145k. I'm somewhat familiar with the area. If you were to rent it out at $1100/month, you probably wouldn't be making much profit, if any, once you consider all of your costs (e.g. mortgage, HOA fees, etc.).

@Brandon Arce I'm going through the MLS pretty much. I do have 3 RE agents automatically sending me new listings that fit my criteria. I'd definitely recommend asking an agent to set this up for you. Because of this, I usually know as soon as something hits the MLS.

Welcome Brandon. I'm an investor from West New York. I recently bought a 3-family and am in the process of buying another 3-family.

Hey Kevin,

I'm not a wholesaler, but you should definitely check out the "How to Start Wholesaling" guide on biggerpockets. That should give you the basics. Then read through the forums for discussions on this topic.

@David Smith Is this $650k cash or $650k with financing? If it's cash, you can do a lot with that. If it's $650k w/ financing, you may still be able to get what you're looking for. However, it depends on where you look. Jersey City and Union City, I would argue, are in different stages of real estate development. Jersey City prices have gone up dramatically over recent years. Union City is not at that level yet. However, there are deals to be had in both markets.