All Forum Posts by: June Veenstra

I know it's probably all speculation but are people buying in Union City because they think that considering it's proximity to New York that if they hold the property the appreciation will in the long run be substantial?  What about multi-family real estate more than 4 units that are rent-controlled?  People still seem to be buying these.  Perhaps they are gambling on the fact that many towns in the area have eventually done away with rent-control or have allowed renovation programs so rents could be raised?  I also am curious as to why people are buying the Union City properties.  Perhaps their plans are to turn buildings condo or take them down and rebuild.  In those scenarios, rent control goes away and apartments can be rented at market value.    

I'm interested in meeting other NJ multi-family property owners to discuss strategies and basic real estate management issues.  In addition, I am interested in learning about Real Estate organizations where I can meet other buy & hold investors to talk about and share Real Estate business ideas.  

I've been told by tank removal companies that if there is a high water table or a lot of ground water in the area and the tank was not properly decommissioned your chance of having a leak could be high.  I am currently in the process of having a tank removed from one of my properties.  Hopefully, it has not leaked but there were also no papers showing it was properly decommissioned.  Costs without a leak will be about 5000.00 but with a leak could be 30,000 to 150,000 or more depending on the extent of it.  I wouldn't take a chance on it unless you really think the property is worth it that risk.

If you want to work for any properties that use a property manager you will need liability insurance and workmans comp. You must be licensed also there might be people that will hire you otherwise but professional companies won't want the liability of using uninsured or unlicensed contractors. 

@Giovanni Isaksen My plumber has mentioned that the pipes are galvanized and probably from the 1940's and so the pipes are a big issue.  Do you happen to know what is the best type of pipe to install today and how long they should last?  My plumber is using PEX.  My contractor thinks copper is healthier but I know it is more expensive and harder to install.  I'm not sure how easy it is to attach copper to existing galvanized piping and we are only doing a section at a time, if and when it needs it.

@Brandon Arce Thank you for your comment.  I know that demand is very high in this area.  That's why I am considering holding on to the property and improving them.  Are you saying a 4 room apartment goes for 1900 per month?  One of the problems with Union City currently is that are no longer allowing renovations to the units and an increase in rents so for rent-controlled units that become vacant, even if I fix them up I can still only charge BELOW MARKET VALUE for the apartments.  I can only charge 600 to 800 dollars a month rent for a 1 bedroom.  However, in other towns, such as North Bergen and West New York, I can make improvements and raise the rents substantially when an apartment becomes available.  Once the apartments are in rentable condition my vacancy rent should be extremely low.  

Thank you @Ozzy Sirimsi.  In the long range plan I clearly make more money.  The only problem is coming up with the cash to make the renovations.

@Andrew Johnson While renovating this 1940's property, I'm seeing that plumbing and old rotting pipes are an unexpected issue.  It has added at least $1000 per apartment to fix the plumbing issues where there is evidence of a past or current leak, or the pipes look rotted out, when a wall is open and we can see it. If there is no evidence of a current or past leak should a wall/ceiling be taken down now while renovating?  If so, that would probably be too costly.  Im thinking if it isn't broken now don't fix it. Am I on the right track here?  

@Andrew JohnsonHow does the age of the property factor in?  I can figure out the payback period for investing in order to get a vacant apartment back on the market and after anywhere from 1/2 a year to 1 1/2 years I've paid myself back and then I'm clearly earning much more money than before.    I just don't know when to stop improving as new units become vacant .... if I can raise the rent it pays to improve them .... but it could cause a current cash flow situation since the payback is long as 1 1/2 years.  That's why I probably can only rehab so many units per year.  (Unless I borrow a bunch of money)   I have 11 vacant apartments currently and can't anticipate when anyone else might move out.  My plan is to get the 11 apartments back on the market the least expensive way possible, while maximizing the rent.  Then as apartments become vacant continue to renovate if necessary or if I need to in order to get the rents higher.  Those other problems like asbestos, etc. mean that I need to have money in reserve to deal with violations and other issues.