All Forum Posts by: David Thomas

@Christopher Wall separate from rent control laws there is common law in NJ that prevents “unconscionable increase” in rents. I remember pressing this issue to our instructor when getting my RE license, and asking how this could apply to a newly renovated unit with no tenants. He insisted it does. Basically, if the average person would see this is unreasonable then it applies and appears to be your case.

Attached is an overview on this law from the state of NJ which spells it out. I would consult an attorney for guidance to be safe.

https://www.state.nj.us/dca/divisions/codes/publications/pdf_lti/rnt_incrse_bultin.pdf

The question is more about enforcement and would someone take you to court over it or just move out?

I haven’t personally done that but many contractors offer financing as part of the program as well as occasionally from utility companies themselves.

@Marina Feldberg. I own a 2-family in Cranford and live here as well so thumbs up for Cranford! Inventory does not come to market frequently so I would expand your search to towns along the Raritan Valley train line, as well as the Morris-Essex line. Plenty of great towns and very good schools within the 45 to 50 minute commute to New York. There is a ton of TOD (transit oriented development)  happening throughout Central and Northern New Jersey and plenty of options for you to consider. 

@Sierra Swords I’d be happy to chat and discuss your investment criteria and goals and see if we can work together to help you be successful. Feel free to reach out anytime via DM or text the number listed in my profile.

Thanks.

@Mary Baccellieri great input here from @Jonathan Greene and @Mark F. and I would have suggested house hack as well with a low down payment loan as owner occupant. I second what Jonathan said in terms of the competitiveness of the northern NJ market, as my investor clients are having to be very aggressive with bids on all types of properties (fix and flips, buy and hold, and also seeing this in many SFR homes on retail side).

Also - make sure you factor in the possibility of tenants (if you opt for multi family) holding back on rent due to COVID-19 for the next several months. This is clearly something you’re aware of with your rentals in NYC. I state the obvious only because you did mention funds being low, so think about how many months can you deal with that until it creates a major concern for you.

For your scenario (if it was me) I love the idea of taking your time to find an outdated single-family that you can live in and fix it at your pace, which would allow you to be near your family and not deal with more tenants and higher risk factors.

@Stefanie R. Feel free to PM me to discuss

@Andrew B. I have done a few of these myself and it’s fairly straight forward. Yes, I got the rebates and overall a simple process. For replacing main HVAC I had the contracting company complete the necessary forms and sent back to me for submission.

No need to have a home energy assessment in my opinion if you know the basics of the building envelope concept. Each year in NJ the rebates/criteria seem to be a bit different.

Ultimately, take a look at cost/benefit since you may need to spend a bit more for energy efficient units that will save your tenants money in the end and not you. This weekend starts Memorial Day so plenty of sales happening. You will also spend quite a bit of time researching particular units/models eligible for the rebates and then find a local vendor or supplier for those models.

However, I am a fan of reducing waste and energy to lessen the environmental impact in a way that balances the investment, but that’s my personal approach.

Lastly, make sure you have every detail 100% complete and required for the rebates and have copies, just in case NJ says they “have no record” of it and you can resubmit.

Congratulations @Christian Cummings  - great way to start your RE endeavors!

Mixed Use Commercial building in Northern NJ. Over 8k sq ft. Fully leased with stable tenants (well known companies) Annual NOI $127k. Valued at 5% Cap $2.5M based on recent comp on same block. Open to reasonable offers. Contact David for more details.

Distressed commercial property in Nutley. 4 apartments and 1 retail space at ground level. Fully leased. Rents $9K/month and 7% Cap. Offering at $1.1M. Email or call  if interested.  Great opportunity in a great neighborhood close to NYC.