All Forum Posts by: Francesco G.

 I think its 1 and 2 are exempt.  3 and up need green card.  3 is exempt if owner occupied (not 100% sure on the 3 fam exemption) 

Hi Ethan,

I just had two green card inspections in June on two of my fourplexes in Union County.  One was a recent purchase and the latest owner didn't maintain it that well so I had a few items come up in one inspection that needed repair.  Nothing major at all but just a list of about 5-6 items that needed to be remedied.  The inspectors that i've encountered (i've had two inspections on my longest held fourplex and one on my newest) have been very courteous, informative, and straight forward about what they are looking for.  For the most part they are looking at safety issues such as making sure all fire/smoke alarms and carbon monoxide detectors are functioning and interconnected where if one goes off so do the rest.  Some other items they'll look for will be rusting railings, fire escapes and other metal work throughtout the property.  Functioning appliances, faucets all work, any flaking paint, any exposed spackle that hasn't been painted, and making sure all common area lights are working.  They'll also make sure all gutter leaders are connected, sidewalks and outdoor stairs are in good condition.  They'll send you a documented list of all the items, you pay a fee online for the inspection and they'll give you an approximate re-inspection date but typically its supposed to be 60 days or so but they take longer to come back (in my experience they have so many of these to do it will be a while before they come back). 

Direct message me if you'd like more info.

 Completely agree with you.  The capex will definitely hit the cash flow harder on a duplex with less units to average the cost.  Thats why i really only like them for househacking rather than straight up investment.  However, if you get one at a big enough discount it would be worth your while in your situation and still provide a decent cash flow after you've left.

Generally I think that if you want to househack then find a duplex that needs some work. You could renovate the unit you plan to live in with nicer finishes and the rental just to rental standards. Duplexes will have more bedrooms and space than a unit in a fourplex or larger building. When you're ready to upgrade or leave, you'll be able to rent out the unit you've been living in very fast since its got nicer finishes. I just wouldn't go crazy with upgrades since its still an apartment and not a SFH. Good luck!

 i'd say wait until you've done a few deals and completely bought into the strategy before taking that plunge. but if its not a big deal time and money wise then i'd do it. Good luck!

I think you best bet on a smaller sized multi-family in this case is to allow tenants to connect their own washer/dryer for a fee or just charge slightly more rent for the convenience rather than buy coin-op machines.  The fee/increase in rent will cover the increase in water usage.  The tenant will be happy at the convenience of having laundry.  If you find that tenants in your area aren't able to purchase their own laundry units then you could purchase and lease them back to the tenants as another option.  I have two fourplexes where I allow the tenants to bring their own machines.  I'm not responsible for them and i'm able to charge slightly higher rents for this added convenience of allowing them to have machines on the property.  Having more amenities or allowing for laundry/storage without an additional charge has enabled me to get better quality tenants in my neighborhood compared to some of the other properties nearby.  It also helps keep them around longer with less turnover since they're less likely to want to move.

 Hi,

The ability to do this will vary city to city and zone to zone.  You have to see what each zone will allow for and the minimum size of the single family lot for it to be eligible for a duplex or more.

 Hi Roshan,

I invest in fourplexes in NJ and have found that for the most part there aren't many "newer" fourplexes.  Most were built prior to the 1980's and will need some work and require some upfront investment especially if you are planning on living there and have higher standards than what will be found in a typical rental property.  

 Hi Scott,

It all depends on the condition of the property.  Is it "stabilized" or will it require a lot of investment over the next few years?  If its needs renovation I would say 10% is good and perhaps maybe consider even 15%.  If its stabilized and you don't expect any major capital expenditures in the next 5-10 years such as a roof, furnace, or renovating any units then somewhere between 5-10% would be a healthy assumption.  I've got a fourplex which I purchased in 2010 and have pretty much completely renovated each unit and replaced all the major mechanicals (4 water heaters and hvac furnaces).  I'm setting aside 7% per month for capex since i'll probably be replacing the roof in the next 5-7 years.