All Forum Posts by: Account Closed

I'm renting out a property where the new tenants will pay water, but the water company will only bill the owner -- me. I want to add a clause to the lease agreement stating that, when I receive the water bill quarterly, it will be billed to the tenant with the next month's rent bill.

Does anyone have language in their lease agreement that they don't mind sharing? Thanks so much in advance!!

Hey Jared. Check out Heather & Brandon Turner's book on Property Management. The forms, procedures, and systems are laid out really well (not to mention the forms are all included!). Also, I use AirTable as a free database application to keep track of rentals, maintenance, my team, etc. It helps to create a logical system that can be easily scaled. All the best to you!!

Jonathan is totally right. There are a good number of co-ops here in northern NJ and it's rarely even worth it to look at any of them, as almost none of them allow for anything other than owner-occupancy. Maybe the co-ops near you are different, but I would imagine not.

I'm fairly new, Tony, as my wife and I started with our first SFH this year, and we're in an expensive area also. If there is anything I learned in the process, it's make sure everything is about numbers and not your emotions. Don't be so excited to start that you end up buying a bad deal.

Often, it's mentioned on the podcasts that your first rental will not make you rich. It's about the education. For me, I eased in with a rental-ready property that does cash flow, but just not that much. My plan is to learn the ropes with the rental side of things before, perhaps, diving into a BRRRR, and, so far, it's working out well to start in this manner.

Hopefully you find the right way to do it for you! All the best of luck to you!!

It's been mentioned, but I would absolutely consider them if they get a co-signer. My dad co-signed my first rental when I first moved out because I had no rental history and very little credit history. I met all of the other criteria, including income, and I wanted to make sure my rental history started out right! 

Hey Chris. I feel for you, man. That's a rough situation to start from, but I think taking stock of where you are is really important.

Recently, on the BP Money podcast, Richard Carey talked about getting yourself into a position of financial strength before investing. Not everybody does it his way, but it's definitely worth a listen. Frankly, the whole podcast history is worth a listen!

You didn't mention any consumer debt. If you don't have any, that's a great starting point!! So many folks are working just to get to 0.

I guess that wasn't really any great advice, but check out the podcast, at least. All the best to you in your financial quest!!

Investment Info:

Condo buy & hold investment.

Purchase price: $205,000

$205k for a 2br/1ba, $1,800/month rent, $360/month cashflow. 25% down, 2.75% interest rate (with points).

Sealing the deal with the seller was all about learning what he needed -- time to find his next home. We have a 45-day usage and occupancy agreement at carrying cost. If he needs to stay longer, he'll pay full market rent until he finds his place.

What made you interested in investing in this type of deal?

It seemed like a good way to ease into the rental side of investing -- no reno., no property manager, etc.

How did you find this deal and how did you negotiate it?

I found it and saw it the day it came on the MLS with my realtor. I made an offer the next day.

How did you finance this deal?

30 yr. fixed conventional mortgage with 25% down and roughly 2.5 points up front. The interest rate is 2.75%.

The down payment came from a HELOC (10 year draw, 20 year repayment, adjustable rate at 4% currently) on my primary residence. We have $0 of personal cash invested in the property.

How did you add value to the deal?

The condo is move-in ready, and doesn't have much room for drastic upgrades. Down the road, we may look at adding some higher level finishes.

What was the outcome?

The owner agreed to our deal because it allowed him to remain in the condo until he found his next home. He pays carrying costs for 45 days, and, if he wants to stay longer, he'll become our tenant renting mont-to-month.

Lessons learned? Challenges?

Make sure you find out what your seller wants, and make it worth their while to go with your offer. Money isn't everything in a deal, so make the seller choose you!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Realtor: Seiji Shiraishi - Keller Williams, Livingston, NJ
Attorney: Margaret Miller - Montville, NJ
Mortgage Broker: Peter Appolito - Finance of America, Paramus, NJ

I would imagine it's also maybe a bit more fun, in that you can personally enjoy all of the work in that it will be your vacation spot, too. It's different when you spend all that money on stuff only other people will enjoy.

Figured I'd add some pictures of the condo here. We close tomorrow!

That looks like a really cool property, @Patrick Riley!! Congrats on what seems to be a good deal, and one that you can personally enjoy, too! Looking forward to following your progress.