All Forum Posts by: Joe P.

Quote from @Michele Cosenza:

In New Jersey is it legal for a landlord to ask you for first months rent ,a month and a half security and last months rent

It is. Initial deposit can be only be 1.5x rent and you can only collect first month. Example below:

Rent - $1000

Security - $1500

Max you can charge a tenant for move-in is $2500 at lease signing.

Someone said you can charge fees in addition to the deposit - perhaps this is a gray area. I would consult a NJ lawyer for confirmation on this. My brain sometimes goes to "what happens if I'm in front of a judge and they ask me why I did something." It's sometimes better to play by the book than write your own script.

Quote from @Jephte Augustin:

@Joe P. I'm so happy you posted this thread because I'm in the process of acquiring a property in GC and if I had stopped at "this town floods all the time", I would have called my agent and called back my offer... lol.

Would you be open to connecting and talking about your experience with AirBNB there?

@Lauren C. I'm in the Lawrence Township. May I reach out? I would like to know how it's going over there for you as well.

Thanks

Sure, feel free to reach out. Flooding is still a problem but being a (more experienced than I was) experienced investor, I know most solutions are simply a business decision.

Hey @Jim Rivell, happy to chat. Still in Gloucester City and I added another in 2020. Added an AirBNB as well last year. Feel free to send a PM.

I have family in Delco and would love to hear about that side of the fence!

Quote from @Keith W.:

The justification for appreciation you mention are not new to the area.  Historically (except very recent national market dynamics) appreciation in 19401 has been cyclical at best.  I am not seeing market changing news that will drive appreciation in Norristown specifically. The very tight supply now has had a dramatic impact on pricing.  When supply and demand rebalance what will make Norristown stand out vs other nearby markets?   I think Norristown is a better buy and hold market. That is the way we underwrite deals in Norristown.  And to be honest, we have sold most of our Notristown portfolio and are sitting on the sidelines for now (WRT single family).  

Very little seems to be popping up from a cash flow or appreciation perspective these days. Takes (good/smart investment) buyers out of the market, but will be it widespread enough to lower the cost with such a limited supply? Maybe fractionally. The next big hit is the interest rates -- was quoted 5.5% on a 10% second home and that's with a point buydown and 800+ credit score. Unreal.

Hi @Danielle Du Plooy, I'm a member of a couple of meetup groups although I've only attended the SJ ones. Here are a few links:

Philadelphia Real Estate Investors Association (REIA): https://www.meetup.com/Philade...

SJREIG: https://www.instagram.com/sjre...

I've got a few more links although I haven't personally attended many events outside of the SJREIG (I have rentals in SJ).

Good points on the delayed financing. One counter-argument to delayed financing is that rates rise 6 months from now, somewhat significantly, due to Fed action. Today's rates might be ~3.25%, but 6 months from now closer to ~4%. That difference is about $100 a month in interest on a 250k loan. Not massive, just pointing out it might be smart to take the historically low free money from the governement while it's available.

You should run numbers on both a mortgaged property and a property paid with cash for COCR purposes.

As for rule of thumb, many investors would like to leverage their ability to obtain mortgages and start with a lot of units, versus dumping all working capital into one unit and not being able to make further moves until its regained (which could take years).

It sounds like you don't have a single property -- I'd recommend running numbers and taking the plunge on a mortgaged property, getting some experience and operational protocols in place, and then expand from there.

Originally posted by @John M Chludzinski:

In NJ, there is a great resource for new landlords (and tenants) called the Truth-in-Renting handbook, available from the NJ Dept of Consumer Affairs.  It will explain that when a tenant-occupied property is sold  the new owner must honor the terms of the tenant's existing lease.  The new owner may give notice to the tenant at the proper time before the end of the lease that you will not be offering a renewal lease, due to the owner's desire to occupy that unit.  If the tenant does not then move out by the end of the lease, then you would begin eviction proceedings if it is allowed under any existing eviction moratorium that may or may not exist at that time. See the handbook for more details.  good Luck on the purchase!

Thought so myself -- can't just kick people out on the sale of a property because you want to or feel like it.

Better be prepped to negotiate with the tenant if you want them out. Bring your jar of honey and a checkbook if you want to have a chance to go quickly/easily.

You really should consider this situation beyond "the law says I can evict". @Mark F. made some great points, to which I'd like to add a few.

Number one, you're dealing with someone's life and where they hang their hat at night; in other words, unless the place is a total hellhole, I wouldn't expect them to just want to move. And if you're moving to evict, prepare to deal with someone hostile about the situation as well. Just because you have the money and the law on your side, doesn't mean this'll go easily or quietly.

Your best bet is to discuss the situation beforehand. Maybe offer up some cash in the deal to make a move palatable.

Consider this -- 2k and return of deposits to the current occupant if they're out by the time you close, say, in 60 days. Is 2k a lot of money? Not really. But for someone who likes where they live, perhaps that sum might be the "amicable" path versus trying to evict someone during an eviction moratorium, who may not want to go in the first place.

And let this be lesson number one for you, if this is your first property -- you're dealing with human beings. Whatever you conjure up in your head, I promise you, will probably not happen when rubber hits the road.

Originally posted by @Dan Thomas:

@Joe P.

Are you cleaning this place your self? I pay $100 per turn for a 2 bedroom cabin, probably about similar in terms of the cleaning burden. If you do clean it that's fine and you will save the $100 per turn but the time required to clean is significant. My cabin takes my cleaner 2.5 hours. 3 turns a week isn't unheard of on airbnb so your essentially adding a day of work to your work week.

I would be hiring a cleaning company. My understanding is that cost is usually passthrough -- so you are charged say, $150 per cleaning...each stay is charged $150 on the platform. I will not be cleaning anything.