All Forum Posts by: James LaPosta

Hey @Lloyd,

I’m not surprised to hear that given how difficult the building department is in Union City. I’ve been lucky to avoid needing them so far but I’ve heard tons of horror stories from other investors. One of my friends is still in the process of adding an addition and converting a 2 family into a 3 family in Union City. As you can imagine, she’s had a ton of issues with permits but she’s gotten through most of them now and is almost an expert at this point haha. Send me a DM and I can connect you with her!

@Andre Taylor-Domville would you mind sharing the firm you are using? I have a similar situation for the property taxes for one of my properties in Union City. Thanks!

Hey @Braxton

I grew up in the New Haven area and if you are not from the area I’d be very cautious if you are trying to get student rentals. My friend and fellow investor John wrote a great summary of the New Haven market on the thread below that summarizes his experiences (he owned multiple properties.

https://www.biggerpockets.com/topics/957315

Hope that helps!

I own two properties in Union City (both started as house hacks, first one refinanced before the second) and agree the rental control laws can be tough. However, 2 families are excluded from rent control and if you owner occupy that 2 family you are excluded from most of the hardest rent control ordinances. I’d recommend reviewing their laws before purchasing but can be a good option given the commute into Manhatan is 30min or less by bus.

Hi Giovanni,

I just bought my second multifamily in Union City. I agree with what other people have said, the area is great if you need to commute to NYC. I house hacked my first property and am doing it again for the second. It is not as nice as Jersey City or Hoboken, hence the lower prices, but it is rapidly changing and prices have been skyrocketing. In the last few years the market has only gotten hotter and it is very difficult now to find a deal. I’ve been focusing on off market strategies but it seems most people in the area know the market is hot so it’s very tough to find a deal. If you can find a deal then it’s a great place to invest in the NYC area.

Also go for two families if you can because you don’t have to deal with rent control. You should try to avoid the city at all costs because they have very slow and can be difficult to deal with.

Hi @Elizabeth L.

I'm actually under contract right now for my second property which is a 3 family in Union City that was FSBO. We are doing it without agents so the seller can save on the fee and I can get a decent deal in a hot market. Yes there are risks but if you have a good attorney so far agents haven't been necessary. If you're interested, send me a PM and we can discuss more. I'd love to know where it is as I might be interested or know some other investors who would be. Looking forward to connecting!

Hi @Sam Sala,

I agree with @Jason Sinclair that Union City is great but also wouldn't consider it high growth anymore. I have experienced some of the appreciation since I own a 2 family there and am looking for another. The appreciation definitely exploded over the last few years but it has peaked. Prices began to stabilize in 2019, after strong appreciation from 2012-2018. Sellers are listing properties at inflated prices now to cash in on the appreciation while they still can. In my opinion there isn't much room for values to grow anymore because rents haven't risen as much as values due to tenant friendly local government. With more rent control laws and a notoriously bad building department, investors are having a hard time justifying the high prices due to the headache and lack of upside. The area is still a good bet just based on proximity to NYC and Hoboken but I don't think it will be "high growth" again until the city opens up more for development like Jersey City did but I don't see that happening anytime soon...

@Ahmed Elias I am considering a shockingly similar deal in Union City, 3 family property that should be subject to rent control but previous owner never filed with the city. I am very curious to hear how everything goes. I already house hack a 2 family in Union City (not subject to rent control) and have thought the owner occupant route to get exemption from rent control for 3 families was an interesting strategy. I think once you move in you should be fine to raise the rents but I am not sure what happens to the units when you want to move out. 

@Stefan Tsvetkov Thank you for sharing all that great information. I heard/read the same things that confirm what you are saying. So you can theoretically move into a 3 family as an owner occupant and raise the rents as you are no longer subject to rent control (however I do believe you need to file something with the city to confirm with them that is the case if it was subject to rent control before you moved in). What is still unclear to me is what happens when you want to move out? I have heard conflicting messages from other investors: some say the units can now be filed for rent control at market rents, others say the units have to go back to the original rent controlled amount as the base. Do you have any insight on that? 

Another thing to consider is the previous owner not filing. At some point you will need to file something with the city and there could be fines when they find out the previous owners never filed or if decide to continue to not file while being an owner occupant. I am not sure how you can get around that. I can't image the new owners will be liable but that might impact future rent raises under rent control. 

Hey Eric,

Sounds like you are on the right path! I also work in midtown and went down a similar path 2 years ago when I moved out of the Upper West Side to buy a 2 family in Union City NJ to house hack. I am not too familiar with Harrison but I would also recommend looking at neighborhoods like Jersey City, Union City, West New York or even North Bergen. It all depends on what your priorities are (short commute, new house, size, etc). With your budget you can likely still find some decent deals not too far from the Path train in Jersey City with multi-families in decent shape going in the 600-700 range. Union City has a great commute to mid-town (bus directly to Port Authority in 25min or less depending on where you are) but older properties. There are definitely some value add opportunities but the market has been heating up the last two years and the city is notoriously bad to work with if you require permitting or city approval. West New York and North Bergen are slightly cheaper than Union City because they have slightly longer commutes to NYC. Apt rents in Jersey City and Union City can definitely hit or exceed $2,000 depending on the condition and size of the unit. 

I hope that is helpful! I am happy to connect more to share my agents, lenders, etc if needed. Good luck!   

Hi Damien,

I am a newbie who bought my first duplex in Union City at the end of 2018. I am currently house hacking as I work in NYC full time. I can echo what the others have said in that Union City can be a great market if you can find value add properties that won’t require significant permitting because I have heard the worst stories about the building department. Happy to connect to share more stories. 

@Nicole S. not to be creepy but I  think I live super close to that 3 family as your name is familiar when I looked up the owner as I’ve wanted to buy it! Would love to connect at some point, I have a meetup you can go to as well with some other Union City property owners (once the world returns to normal that is!)