All Forum Posts by: Kelli Gaul

@Tyler Minkel I'm not from the area, so I can't help with specifics. I would say read as much as you can about investing, renovations, landlord-tenant law, etc. that you can before you make that purchase! This is how I got started investing last year and wanted to wish you luck with your investments!

Hi all! I wanted to get some opinions on our situation to see what others would do.

We acquired a duplex in Queens, NYC in the beginning of April with inherited tenants in one unit. The other unit is vacant and we'll be renovating before getting in new tenants.

The current tenants are paying $1,200/month and market rents in the area are around $2,000/month. There's no security deposit. We are keeping the tenants in place, but will increase the rent over time to get closer to market rent. They're currently on a verbal month-to-month lease and we'll be getting them on a 1-year written lease.

My general question is, how would you go about increasing the rent? Specifically:

How much would you increase the rent initially & per year after that? 

How much notice would you give before the rent increase? (I did not see a legally required time frame for a new lease or rent increase for unregulated apartments, please correct me if I'm wrong.)

Would you require a security deposit with the new lease?

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Clifton.

Purchase price: $315,000
Cash invested: $75,000

Duplex and first investment property we are currently house hacking. We live in a high cost-of-living area, so we are not living for free, but our rental income currently covers 50% of the property's expenses.

What made you interested in investing in this type of deal?

We like the potential to build long term wealth with buy & hold properties. Also, we found a duplex to be easier to manage as our first investment, rather than larger multifamily properties.

How did you find this deal and how did you negotiate it?

We found and negotiated this deal through our real estate agent.

How did you finance this deal?

This property was financed through a conventional mortgage, with 15% down and no PMI.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes. If you're looking in New Jersey, we had great experiences with our real estate agent, broker, and attorney.