All Forum Posts by: Mike Kalob

I'm considering tax appealing 3 of my properties; 2 seem very high given my low [foreclosure] purchase price, but 1 can go either way since the neighborhood is gentrifying for that one.

Would I be shooting myself in the foot if I try and appeal the last property?  The city hasn't had a reassessment in years and is happy so long as taxes get paid.  If I try and appeal, and find out my taxes are low given this part of town is gentrifying, could they actually INCREASE my property tax?  Advanced thanks.

Thanks all for your input, however as I mentioned above I do verify employment, tax transcripts and credit check, etc all within a couple of hours.

Yes, I always see a red flag if if I sense they rush because they're having trouble with previous landlord [you get a sense about people in the first 2 minutes after meeting so many prospects over time]...

However, this frenzied rush from qualified A+ tenants is driven from inventory contraction in a very hot rental area, where rentals are taken down within a matter of hours (this is Manhattan fwiw)..

As Elizabeth mentioned above, because I wanted to sleep over it for '2 days,' (more of a personal thing), they took their premiums elsewhere. In the days of linkedin, instant credit check, quick employment and salary verification (even IRS transcripts is going online), I think I have to start accepting VERIFIED tenants on the spot so as to not leave premium money on the table.

"I like the place.  Take my deposit now, I'll pay a higher rate rent and sign a year lease so long as you stop showing the place.  Here's my credit report and tax returns [verified.]"

Just curious if any of you other landlords here this?  I always need to sleep over a big decision for at least 2 days, however I feel like I'd lose a very qualified tenant who's actually willing to pay higher given the hot market one of my properties is in.  Assuming all things check out (tax returns, salary, credit check which can be verified in an hour or so), do you sign contact same day?

Maybe I'm old school, but I like to mull things over for at least 2 days, thanks. 

Thanks, novice question as I've been my handyman for my first couple rentals but this is my first time using a general contractor... do you have all your materials picked out prior to contacting a GC for bid or is that part of your [assuming extra billable] process/initial discussion?  

Howdy All,

I'm about to fully reno my kitchen and bath in hopes of renting out my 1bedroom. Is Home Depot the cheapest place for materials for one of my rentals?

I've read some people go material diving for excess/unused materials at slab/appliance/cabinet yards but we don't have much of that (it seems) around North NJ and I work a full-time job so my time to scope material yards is somewhat limited.

Where do you all go? I would like middle range DURABLE materials since it's in a nice doorman building (ie I'm personally fine with formica, but prospective tenant may want granite counter-tops given the building's contemporary amenities)...

Also, regarding countertops, I don't really follow what's new.. is GRANITE still the best ROI option for something nice but DURABLE (I don't want to replace over the years)?

I spoke with another buddy who mentioned updating to QUARTZ since it's much less porous than granite and will last a lifetime.. however, he deals with stylish/hi-end units where as this one of mine is moreso middle/entry-high level unit, so the tenant probably doesn't care about Quartz' stylish looks.. has Quartz come down in price the same manner as granite in recent years due to over-popularity (thanks HGTV!)? Advanced thanks.

PS when you make contractor bids, do you have all your materials from Home Depot (or store) picked out prior to meeting with the contractor, or do you discuss this during to see if they have inside discounts (though I understand this may bite me back in the end)? Thanks.

Great thanks, I'm in the same boat.. currently have too may properties for my personal umbrella and they wanna drop me.. so I figure create an LLC, dump all the new properties into that one, then get commercial umbrella for those.. I'm also in a very liberal state so I doubt having multiple LLCs would help, especially since they'd be single-member anyway.. thanks much for your input dude!

 Hi Joe,

I'm about to reach my 2 year mark on one of my tax liens as well.. from what I gather, should they pay the lien (which they probably will), they have to pay the original amount, any interest accrued, plus any legal fees you accrue so long as they are reasonable, which seems the case here.  

I'm not sure if foreclosing legal fees would fall under "legal fees" associated with keeping the tax lien current or if it's separate though; its a good question since this is such a niche field with lawyers.

I read a book 'The Complete Guide to Investing in NJ Tax Liens,' by Michael Pellegrino and reached out to him before as I had questions on his book.. he was nice enough to answer for free, his email was [email protected], phone 973-586-2300..not sure if he's still in practice though.  Update us with how it goes.

Thanks for your input Graham.. are all your units under your personal name or are some in LLC names?

I spoke with a large commercial umbrella insurer and they preferred all my rental properties be under my personal name which didn't sound right.

When I asked if the commercial umbrella would cover all my properties should I place each one in an individual LLC, they said I'd have to get a commercial umbrella policy for each unit. Was that the case for you? Thanks

From what was stated above, most umbrella insurers do not cover rentals in LLC.. or do you mean get a commercial/business umbrella insurance? thanks..

Daren & Elizabeth,

Were are you finding Umbrella insurers to cover you considering you have 6+ properties? Most Umbrella policy underwriters I've spoken to cap rental properties to about 4-6, then they say I have to put new properties into LLC and get commercial insurance for additional properties.. thanks