All Forum Posts by: Paul Stewart

Thanks Kurt. It does seem like a lender requirement thing to me as well. Currently looking to change lenders if I can get a better deal. 

@Kurt Kwart Hey Kurt, sorry to bother you but i'm sure you would be able to give me some insight on this question if you have a chance to read the topic. Thanks in advance. 

Thanks @Chris Masons It very well be me misunderstanding. I just want to know exactly what is correct and what is not. I was under the impression that in NJ or at least Atlantic County Nj you did not have to pay the insurances a full year upfront.  

So i'm about to make a offer on a property in Atlantic city. I own a home in New York. I have been told by several people in Atlantic city (real estate agent, home owners other investors) that in NJ at closing you only have to pay a quarter of your taxes, home owners insurance and flood insurance upfront. As in NY all that has to be paid for a year in advance. My lender gave me the break downs of the closing costs for the price i'm willing to pay and it seems very high to me. His estimate has me paying in advance labeled as ( items required by lender to be paid in advance) 12 months of homeowners insurance and 12 months of flood insurance then under that its labeled ( reserves deposited with lender) 

3 months of homeowners insurance, 3 months of flood insurance and 5 months of property tax.  so basically i'm paying 15 months of homeowners and flood insurance at closing...that does not seem right to me that's more then NY and from what I have been old from several people that is not case in NJ. So maybe i'm misunderstanding something on 1 end or the other...but figured I'd write a post and see if I can get some answers as far as closing in NJ. my total on closing is coming out to be $16,400 and 8,000 of that is my deposit. So that's $8,400 to close. That seems high in NJ to me. Like i mentioned before everyone i spoke to said they paid in the $4000 to $5000 range to close not including their down payment. Any hot takes on this? I might be completely misunderstanding something. I asked my lender but I still did not really understand him. He told me he needs the 12 months upfront that its law..

@Kurt Kwart Thanks Kurt! This past weekend was great saw some really good properties. Putting in a offer today and a SFR so fingers are crossed. Do you have any suggestions on good insurance companies to work with in the area and or a not over priced real estate attorney. I have got some quotes for both and they seem a bit high when I measure it up to what I pay in New york.

@Joseph ODonovan Hi Joe

 I'm in the process of buying in AC. I have stayed in a few airbnb's in the area to just speak to the owners about their business. I have been actually surprised how positive the feedback is. As long as your numbers work well. On season I think you definitely can positive cash flow but off season seems a bit harder. Also area is key and how nice your property is. Some properties have tax issues as far as owners refusing to grieve and flood insurance can really hurt cash flow possibility in my opinion. I have looked at almost 30 properties and after running numbers with insurance quotes  on the properties I was interested in, only a hand full come back with numbers that make sense for Airbnb and or renting. Multi families might be a better option but any multi families I looked at need a good amount of cash to rehab. 

@Kurt Kwart What is your opinion on Row houses? I have been leaning away from them but I have found a few that the numbers just work really well. I'm a bit worried though on all aspects of them. Not sure if its good for Airbnb not sure the equity will grow at the same amount as other properties and as for renting it out  with so many properties available for rent in AC I wonder would it be hard to get good tenants in a row house. 

@Kurt Kwart Do you Airbnb any of your properties out? How is that going for you and how often do you get Airbnb guests lets just say on 1 property. Once a month twice a month? I'd guess on season is more on going then off season. 

@Joe S. That whole Area is great! I'm currently looking for a property in AC to invest in as a hold property. I have looked all over the city just looking for the best bang for my buck all around. That area is my favorite area the back bay the private side of the beach and they just rebuilt the boardwalk in that uptown inlet area. I ran into a few road blocks with properties that are within that part of town. Between flooding and first time home buyer HUD properties that for some reason ( i dont understand yet) you can not buy the property with a conventional loan or cash. I'm still learning but I know the AC area pretty good and learning more every day.

@Eric V. Have you went and looked at any properties in person yet? I'm in the same boat as you except at this part of my journey I have a real estate agent and locked down my lending for the investment. I'm really looking for a jewel of the city and have not really found it. I have ran into issues with the cost of flood insurance and taxes. Especially some foreclosures that would be great steals but the Taxes on the property that a bank wont start the grieving process on are very high. I believe the last day to grieve taxes in april 2nd in AC. So buying a 90k property with 10k a year taxes that break down does not make to much sense with my current cash situation. What have you found thus far?