All Forum Posts by: Kevin K.

@Joseph Chacko vellukunnel Speak directly with the company handling the oil tank removal.  Questions to ask: Was the soil around the tank tested?  Was there an oil leak?  If so, did they remove soil?  What's the NJDEP case #?  Is there a remedial action report (RAR)?

Confirm the company is licensed for tank removal as part of the UHOT program.  Check NJDEP website to confirm.

Go to NJDEP website and use the online OPRA request to look up information.  The website is clunky and not user friendly at all, but if you tinker with it and figure it out, there is a wealth of free information for doing environmental due diligence on properties there.  If no records are found then usually it means nothing was reported to NJDEP (i.e. like an oil tank leak, or presence of unregulated oil tank, etc.).  You have to know how to search it though.

Good luck.

@Krithika Nichin I would stay away from this unless you have past experience. Historic is very complicated and adds significant time and cost. The head of historic at JC is very experienced and good at what he does but he is extremely detailed and not compromising if it affects the historic nature of the building.  If you're acquiring the site, make the acquisition contingent on approvals unless you know with 100% certainty what historic will allow prior to closing.  Also, you can NOT EVER demolish any structure (or even a portion of a structure) that is considered historic no matter how dilapidated it is unless you intend to re-build it exactly as it was (especially facades).  I'm not joking about this.  I have seen buildings crumbling that the historic board will not allow to be demolished even though the applicant had the best attorney, a structural engineer and experienced historic consultant.  I have been to several of those historic board meetings as the attorney we use also represented several of these other clients trying to demolish historic structures.  Not one has been approved by the board.  Good luck.

@James Campbell I would suggest you discuss with the other owners and have someone call the DCA to see if they can waive the penalty given the circumstances in exchange for the condo assoc abating the violations immediately.  Plead your case.  If that doesn't work, talk to an attorney.

Also, you may have a case with the title company.  If you purchased owner's title insurance, then someone should've checked something like this as part of closing.  You never know.  You may be able to file a claim against your title insurance.  I did that once for an unpaid sewer/water bill (which is usually one of the things that title companies check for) from prior owner and got reimbursed pretty easily after filing the property documentation.  This is a little different in that there is a condo association involved so it may not be covered.  It's almost like an unpaid assessment on the condo unit from the association.  I would've thought that title insurance covers something like that but check with a title person who might know.  Good luck.

@Russell Gronsky Hmm, it's hard to tell if that would determine whether groundwater is an issue.  I had water coming in from the same area because the hydrostatic pressure at the wall and below the slab caused water to seep through the cracks which were primarily at the point where the slab met the wall.  I also noticed water seeping in from a few parts in the slab where it was dry around it so I knew water was coming up from below the slab at those cracks/openings.  One way to test is to make a few holes in various parts of the slab that generally stay dry during the rain and see what happens.

Slabs are generally thin so it's not that expensive or hard to break the slab to install a french drain.  All my installs were interior french drains that cost about $30/lf.  I got quotes from more reputable guys at $50+/lf.  The install consists of making holes at the bottom of the wall, using gravel, pipe, etc...google it and you'll see a common theme among the recommendations.  I think exterior installations are more expensive because you need to excavate a lot to get to the footing.

Google exterior vs interior:

https://www.google.com/search?q=interior+or+exteri...

@Russell Gronsky Just make sure that if it's an exterior french drain that it'll solve the problem of rising water table/ground water that is below the slab.  Exterior drains solve problems at the perimeter and outward I think.  Many times the water comes from the walls AND below the slab.  It just depends on your area.  You might need something below the slab to pick up rising water and drain it into a basin before it seeps through cracks.  Ask your contractor.

This was an amusing series of posts.  Picked it up via my usual keyword alerts.  I've done many interior french drains.  Google searching will show plenty of stuff but to correct any confusion in this post, the french drain should drain into a basin with a sump pump.  Cheapest I've ever seen it is about $30/linear foot (very labor intensive) excluding the pump...I would only pay that little if I weren't finishing the basement.  In my area, the pump is supposed to discharge into the street (verified multiple times by multiple building department inspectors).

As crazy as it sounds, many of the towns in Hudson County, NJ have combined storm and sanitary systems.  The stormwater actually connects into the sanitary system.  This whole area is a concrete jungle so you can image the amount of water entering the sanitary system.  It's disgusting and illegal by federal and state law but too costly for cities to fix.  And yes, when it rains a lot, the sewers backflow like water mains.  I've seen it firsthand on numerous occasions in numerous basements with uncovered cleanouts, etc.  The situation is getting worse because of higher tides and generally higher levels of water.  I'm very wary of finished basements in my area, particularly if you have any floor drains, basement bathrooms, etc.  I'm hearing numerous anecdotes from the sewer company about more and more complaints.  Nothing like neighborhood sewage mixed with stormwater in your basement...

@Eric Maury What depreciation cap are you speaking of? Every investment property can be depreciated (usually 27.5 years for all resi buildings like this) regardless of whether it sits in an LLC or in your name personally. LLCs are pass through. The rules don't change much in terms of what is tax deductible just because it sits in an LLC.

You are correct in that putting it in an LLC prevents you from getting government agency (i.e. fannie) backed debt, which is allowed on up to 4 unit buildings. You can still get a loan on it but it means you have to get a commercial loan (usually 5-10yr maturity with balloon, 25-30yr amortization schedule though). There are very few lenders that will do 30yr loans on investment properties in LLCs as they have to hold the loan to maturity (can't sell it to fannie). The few that do charge a higher rate of interest.

@Johann Jells Very interesting information. Thanks for sharing. I'm surprised the JC board initially sided in favor of the landlord's hardship application to begin with.

@Abe B. I'm pretty negative about Hudson County. It's currently overpriced in my opinion. The tax lien sales are overrun but institutions.  It doesn't mean you can't find deals...it just means you have to work harder and have a competitive advantage of some kind against the million other investors thinking it's a hot market right now.

Each city has annual tax lien sales.  Just ask the tax collector when the next one is and how to get info on the tax liens available for sale for the next auction.

@Abe B. each city does a tax lien sale every year. You won’t find anything longer than a year that hasn’t gone to a tax lien sale. Anything delinquent over a year gets sold.