All Forum Posts by: Shawn Mcenteer

Hi @Nancy Cho happy to connect and talk business. Sounds like strategy call would make most sense to see what your goals are with REI and being an agent to determine if the organization I represent aligns with the direction you are looking to go. Please feel free reach out.

Hi @Diaz Dimas I am realtor and mortgage loan originator.  Long story short, couldn't stand working with majority of realtors I would connect with when I first started investing becuase most realtors are not fluent in investing. So I decided to become a realtor. I had a similar experience with lenders so decided to become an MLO.   Happy to be a guide with everything real estate investing in New Jersey.

Speak directly with municipality to confirm Exactly what they require but unless the door is directly in bedroom in most cases a window will be required that is large enough essentially for firefight to enter bedroom with gear on. The exact dimension town will be able to confirm. 

I’ve had cases where clients of mine had dug out the ground in order to have large enough window put in to qualify basements space as bedroom. 

The cost associated with insurance for not having 20% is peanuts compared to what you potentially can do leveraging your down payment.  I would keep as much liquid as possible and essentially get you to 20% equity or more by renovating the property.  Applying a value add strategies can get you to much much more equity rather quickly.

Hi @Jeremiah Johnson Egress and fire escape are great.  You must also consider ceiling height and window size as it pertains to bedroom egress, this is separate in terms of livable space.  Another huge aspect to consider is kitchen stove/oven,  it can be very difficult to be allowed to have stove in basement.  Keep in mind with all this livable space is much different in comparison to separate livable unit.

Hi @Zhong Zhang I have used vacancy hacks over the years to get personal properties under 1% when turning tenants over. 3% increase depends on renewing or getting new tenants, when renewing tenants that's  a safe amount.  When getting new tenants I've found the increase to be much more.  I enjoy tenants turnover ever few years for the reason fair market rents tend to increase significantly year over year.  This vary heavily town to town. 

20% down is great if buying strictly as investment but if you have a way of owner occupying I would explore that route and apply the 20% down to increasing value of property and instead using low money down loan.  It can accelerates process and can make numbers look very attractive (if you are open to renovations, does not need to be crazy)

Hi @Heather Bailey something to consider with this is legal mother/daughter may not mean legal duplex. Renting out technically may not be legal for this property. The good news is owner occupying allows you to get away with things like this a bit more. STR is another concern, many towns have laws against it but most towns do not enforce these laws, just make sure you are aware of them becuase they can be enforced.

Regarding insurance adding additional umbrella insurance is great idea.  Requiring occupant to have renters insurance is another possibility for extra protection. The biggest thing with this is if something major happens are you legally covered if the unit is illegally rented.  From tax stand point I would think you can separate from primary and be okay with IRS being that IRS will not be local code enforcement.  

Hi @Ben Butcher Great question. The answer to this will come down to comfort level, funds available, and strategy you are looking to implement. For example college rentals generate some of the highest ROI of properties I come across in New Jersey but it depends on the school and location of property. Another huge thing to consider is laws and regulations, many times new investors will jump at Hudson county thinking the proximity to NYC is great for renting (which it is) but many of the municipalities in Hudson county have very strict landlord laws. Another example of this is Newark, extremely strict laws making land lording a second job.

When finding the right area to invest, towns with more lenient land lording laws and proximity to public transportation tend to be a receipt for success.  

Hi @Mike Arias I think it depends on the strategy.  I will let you know I've been house hacking in new jersey for over decade.  My wife and I heavily considered investing out of state.  All I can say is no way we would be where we are today had we gone the out of state route.  Owner occupied loans have allowed us to purchase properties in markets with heavy appreciation, and potential for huge rent increases. Best part is NJ is not what its made out to be in terms of landlord friendly, the state gets portrayed as the entire state being bad when really most wacky laws are in the major cities and they apply to 5 units or more.  2-4 unit multi families fly below radar per say. 

Hi @Charles Fay it sounds like you are in a very good spot with finances.  To me house hacking is one of the simplest ways of jumping into real estate an acquiring properties, especially if you are handy.  Implementing a value add strategy, which will raise rents and force appreciation has been an unfair advantage in just about any market condition.