All Forum Posts by: Gargi Keeling

I'd appreciate if someone could share a template for notice to quit. Our tenant is a long term (10 year) tenant and I acquired the property earlier this year. After many repairs and remodeling, I'm trying to raise rents to a bit under market rate. Upstairs tenant agreed to increase but downstairs didn't. They are both on month to month.

I tried negotiating a lower rate but that wasn't low enough for them so I am giving them until Feb 1 to get their next place lined up and move. I feel that I am being very generous but tenant has been a bit difficult in the past so I'm not sure how she will react. I want to make sure I'm doing everything by the book and happy to be a bit generous to make this go smoothly.

I usually get electronic signatures for everything but it seems like I should send via certified mail, too. Appreciate a proven template to do this! I'm already losing a ton on this investment so trying to avoid legal fees. TNX

@Natalie Schanne Sorry for missing your post. To be honest, this 'deal' I got has been a money pit due to old infrastructure / deferred maintenance. I've sunk $15K into the property since purchasing earlier this year (roof, siding, dry rot, electrical, water heater, you name it). And the rents are way under market and tenants routinely complain about potential rent increases (I haven't raised rent yet).

I definitely have to raise the rent to make this financially feasible. I'm planning to raise as of Feb 1 and give notice of increase / new lease terms soon (they are on month to month from previous landlord). 

Re: 1031 exchange - right now this is my plan for deferring taxes so it makes sense. But we may not will these to our heirs (but rather charity) so not sure if we need the exchange to defer taxes or note.

Regarding princeton numbers - those prices seem to be for condos / townhouses so we have to factor in HOA. I like Princeton (lived there) and appreciate the higher rents and professional clientele, but not sure I would get these numbers. Do you think otherwise? tnx

@Sapir Taib very unlikely in that price range unless your definition of silicon valley includes the adjacent areas such as Santa ceuz county and East Bay. If you are interested in Santa Cruz county, let me know.

@Daniel Lempa My duplex is also in South Jersey and I just got my roofing and siding repaired by a very honest and decent contractor. Contact me directly and I'll share the info. I also have a roofing contact from my prior South Jersey property.

@Paul De Luca they might get it right in 2023 but you know what they say about broken clocks (correct twice a day!)

@Nathan G. Fantastic Life philosophy. I feel the same. I'm still working towards building the portfolio. My day job is really stressful though and requires a lot of attention.

@Bill Brandt wow! That's outstanding and certainly something to aspire to.

I'm wondering did you ever think about keeping mortgages on these properties so that you can keep your capital working across more markets and spread your risk?

The other thing I was thinking about is these scams where fraudsters steal the title to your property and then sell them on the market. A house that is fully paid off is at higher risk for these scammers and the equity will get paid out in full to them. Whereas if you have a mortgage on these properties the bank gets paid first. Any thoughts on this? And did you ever worry about this?

@Mike Hern Yep, I'll be watching this closely since I live and invest in the area. I'm hoping the rents will come back up since I took a hit during the pandemic. I'm still struggling with getting contractor resources to fix up my rental. I'm hoping with the recession that I'll get more chances to hire people to actually do the work.

Investment Info:

Single-family residence buy & hold investment in Ewing Township.

Purchase price: $176,000
Cash invested: $44,000
Sale price: $280,000

3 BR/2.5 BA townhouse w/ garage & basement

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

Low entry point, nice safe neighborhood, working professionals as renters

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

Our agent, Shani Dixon, with Fox Roach/Berkshire Hathaway

How did you finance this deal?

Downpayment / loan

How did you add value to the deal?

We remodeled this pretty extensively - new kitchen cabinetry, bathroom vanities, lighting.

What was the outcome?

1st tenant didn't last long, 2nd tenant was good - reported issues, kept the place tidy

Lessons learned? Challenges?

We probably could have used cheaper materials but I think it added value to the home. And we lucked out w/ an affordable contractor.

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

Shani Dixon

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $235,000
Cash invested: $70,500

up down duplex w/ yard and balcony and attached garage and basement

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

Leveraging appreciation in 1st NJ investment and then using 1031 exchange to move equity into a duplex. We have enough funds to buy a second duplex.

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

Our awesome realtor, Shani Dixon, with Fox Roach/Berkshire Hathaway. She was the agent for the first property and also listing agent for the new property. She helped us negotiate a fair deal for both parties.

How did you finance this deal?

1031 exchange for downpayment, standard loan for the balance

How did you add value to the deal?

Not sure if I did much apart from due diligence via a walkthrough with my agent. We also paid for inspection and following all the rules (landlord registration, safety remediations, etc.)

What was the outcome?

We closed less than a month after selling the first property as part of the 1031 exchange.

Lessons learned? Challenges?

We have to consider the norms for the area. In Hamilton, there is landlord registration, certificate of occupancy, sewer/water bills, gardener - all paid by the landlord.

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

YES - Shani Dixon from Fox Roach/Berkshire Hathaway (Princeton Junction, NJ)