All Forum Posts by: Matthew Passero

@Allan Szlafrok I appreciate the reference and will definitely inquire with him when we are looking for inspectors.  

The property does have one restaurant as a tenant so I am definitely giving that some consideration. 

Looking for some references for a commercial real estate building inspector?

Property Location - Nutley, NJ - Essex County

Also - what's the significant differences between commercial and residential and can I use my residential for a commercial building?  

@Joel Owens Thanks Joel - I really appreciate all the input and options.  I have thought of most but not all of what you said.  Really appreciate the feedback and input.   I don't have all of the info just yet and am waiting a response from the sellers so will definitely be asking for all of that information.

Hi everyone - looking for feedback on the below deal.  All numbers & due diligence has not been completed but this is all information that I have.

Mixed Use - 2 retail (Restaurant / Hair Salon), 4 Apartments (3 1BRs / 1 2BR)

Parking: 4 spots for apartments

Location: Main street, near center of town, plenty of municipal parking nearby

Roll: Restaurant -  $4,745 w/ escalations (14 years left), Salon - $2,900 w/ escalations (9 years left)

Apartments all rent at $1,200 per month with some room for growth.  2 units have longer term tenants. 

Expenses: Taxes - $21,213, Insurance- $3,000, Utilities - $1,100, Alarm - $1,000, Smoke & Carbon - $700, PSEG Worry Free - $1,100

Mgmt Fee - estimated at 4%, vacancy estimated at 5% for residential, property maintenance estimated at $5,000 per year, 3% for reserves.

Would love your input / feedback.  Listed at a 6.47% cap rate but that excludes all estimated expenses after the PSEG Worry Free. 

At this point that is all the information I have.

What would you offer?  What would you value this property at? 

@Jessica Zolotorofe Again, I haven't done all my homework just yet, but according to the tax records it is zoned as B-B in Clifton, which is Stores & Shops, Neighborhood shopping center, and Offices.  On the property already is a restaurant and parking for that restaurant.  The idea is to redevelop the back end of the parking lot to residential/office/retail/etc., whichever made the most sense, but ideally apartments. 

Looking for input & feedback from the BP community:

I have a large piece of property in Clifton, NJ and I am thinking about developing the back part of the property into an apartment building (possibly use 50 x 150).  I have an average understanding of what needs to be done (variances, zoning, permitting, GC's, plans, etc.) but would love to get input, feedback, etc. on the entire process before jumping in and figured the BP community would be a great place to start.   Would be great if you have specific experience in this area of NJ as well.   This idea is really in the beginning stages so I'm open to all types of scenarios/questions/feedback. 

- How many units can I fit into this size of a property

- Looking for a ballpark range of cost for the investment broken out (zoning, permitting, plans, construction, etc.)

Thanks in advance.

@Patricia Baxter I plan on continuing to rent through VRBO/HomeAway but also try and let my potential renters know that they can rent it through me as a real estate agent to save the few hundred dollars in commission paid vs taxes paid.  It is difficult since you cannot exchange contact information prior to confirmation.  I actually just got bumped to a "Premier Partner" so I'm able to communicate prior to their booking now.  

At this point in time we have still been getting continuous inquiries through VRBO/HomeAway about our property even with the occupancy tax so we'll see if they keep booking. I did list it through the MLS in case anyone did want to go that route as well. It would have to go through my brokerage company though and the commission is 10% of the stay.

Message me if you want to connect more or if you had any interest in listing your property with an agent and we could work something out.   

Hi All,

I have a rental  property listed on these rental websites and wanted to get other's input on the new Occupancy Tax for New Jersey.  There is a clause in there that states that the tax is not due if the rental is rented through a licensed real estate agent.   I have my RE license and also happen to have a rental.  

There are some significant savings for a potential renter paying a 10% commission vs all of the Occupancy Taxes + Service Fees that these listing websites charge.  My plan is to try and get renters off of the VRBO and direct them to my own rental listing. 

What are others doing in the market?  Anyone else in this situation?   Is this reasonable or am I missing something?

Thanks,
Matt

@Francis Mendo I work at KW and we use NTN Online.  

https://ntnonline.com/

@Christian Sifuentes I got my license earlier this year.  Key is to find a good school which will really prepare you for the exam.  After taking the exam, you'll need to link up with a broker.  

Where are you looking to take the course?  

Here's a list of the accredited schools in NJ.

https://www.state.nj.us/dobi/division_rec/licensin...