All Forum Posts by: Phil B.

Located in PA

I'm under contract on a 24 unit, independent senior housing complex. It currently has a 20 year HAP in place with an annual 1.4% rent increase. It currently has a waiting list and is a 7% cap. 

Someone mentioned to me that 20 year HAP's are bad because expenses on the property will only go up (for example taxes, and if the area sees growth then presumably maintenance and repair labor will go up), and cannot raise rents enough annually to keep up with those growing expenses. 

Does anyone have any insight on this? Or does anyone currently use HAP contracts as a strategy, or own independent senior housing with a HAP in place? 

I am closing on an 8 unit residential property in Passaic, NJ and i'm looking for insurance quotes. Does anyone recommend any companies in the area?

Good luck - I passed on a 2 family there. The population has declined within the last decade or so, that’s what turned me off. Hopefully things work out well for you, house hacking is a great tool. Keep us updated.

Curious to know where people are investing in Newark, NJ? Is rent control an issue? What kind of returns are you seeing for buy and hold? 

Wow, that's unfortunate. This particular property is cash flowing, the area just seems stale. Locals have told me the area is starting to come around. My understanding is Newton has always been the way it is. Just curious to know if anyone actually owned and rented out property there.

Bump

Anyone have an opinion on a buy and hold strategy in Newton, NJ? I know they have decent restaurants and the local theater is making a comeback. How is it for buy and hold?

Originally posted by @Darren Sager:

Elizabeth has very high taxes compared to purchase price.  That's not saying NJ in general doesn't have high taxes, but I'd rather purchase a home at $500,000 with $15,000 in taxes compared to units in Elizabeth that can be $240,000 with well above $10,000 in taxes.   If you're investing in Northern NJ, stay within the two circles or along the train lines and you should be well over long term.    Sorry the picture is on it's side.  

 What area is that of? Its hard to tell from the picture. thanks

Yes that's a great point. I never thought of it that way. Thanks