All Forum Posts by: Ray Reed

Your best bet is to go there on an evening and see how the block looks then. in a way you are fortunate because these are the summer months and you can get a good feel of what goes on around that house. if you see a lot of hanging around on porches or a house with a lot of traffic (foot and car), proceed with caution.  If the block seems relatively quiet without much loitering, you may have a place where you can attract good tenants.  you can rent practically anything if it is priced right. 

How many bedrooms are in each unit?  are the utilities seperate? what are the taxes?

Hello Kaoru,

I cannot answer the second part of your question but any knowledge you gain can be helpful.  Since the appraisal is mainly to satisfy the bank before they give you a loan, I would not do it.  There are a lot of free online tools to help you determine whether a house is a sound investment or not.  I recently purchased a property cash with no appraisal because i know the rents in the area and how much i can cashflow.  An appraisal wouldn't of swayed me one bit.  Of course if i was going for a mortgage, the bank would of required it but since i know my market, the appraisal would of satisfied the bank.

Would you consider getting a Real Estate License? It seems like that would be more beneficial. You would be able to get comps (like an appraiser), have quick access to the MLS and therefore identify the deals early, and you can make money representing the seller, buyer or landlord.

Good luck on your investing

Newark can differ block by block.  unfortunately it only takes one bad house to ruin the block. summer time is a great time to see the true color of the different areas.  good luck on your investing.

You may also want to research insulation blown into the ceiling.  I had to do this years ago.  Instead of taking off your ceiling, they create 2 inch holes in the ceiling and blow the insulation in and patch it back up.  Like others have mentions, soundproofing is not cheap.  

@Moises Mari maybe i missed it but do you have a lease now with the current tenants?  I would be very careful with that $25 a day late fee.. 1.) the tenant may not sign it and 2.) you don't want to go to court with the tenant owing you $500 in late fees.  The judge may rule that as excessive.  Not sure if you know this but you must also identify your late fee as 'additional rent' on the lease. if not, the court will ignore your late fee.   

For the record, there are a lot of good paying tenants in Newark.  You may have to be a little patient.  I would also advise you to stay away from anyone with TRA (temporary rental assistance).

Hello Mr Mari,

Newark can be a challenging area to deal with but you can make money there.  I cannot speak on the layered late fee.  I know some people do it but I find it easier to charge a flat fee.  In my experience, inheriting tenants can be a catch 22. On one hand you dont have an empty house and if they are paying tenants, the cash comes in right away.  On the other hand, you don't know how the prior landlord ran his operation.  He could of been lax about collecting his rent and not applying late fees.  So you have to break them out of bad habits.. You have to set the tone early or they will try to manipulate you.  For starters i think that the 10th is late in the month.  I give them until the 5th. For whatever reason, even though the rent is due on the 1st, they always look at the last day of the grace period.  For that reason, i tell them that the mail must be postmarked by the 5th. That way you have a reference point.  Of course something can happen with the mail but in my experience, that is rare.  Essex County court is very backlogged with Landlord Tenant cases so putting off your eviction filing after the 10th will expose you even more to losses. 

As far as tenant screening, before I even show the unit i check to see if they have had landlord tenant cases.  You can do that free online.  I am not wasting my time showing an apartment to anyone that was 1.) evicted in the last few years  and 2.) a landlord has to constantly file for eviction before they receive their payment. 

Did you try Insurance Associates Plus in Union?  Ask for Bela Or Michelle. 

I finally have the number to the guy that does granite counter tops.  I left you a PM with his phone number (since i cant post numbers on the board). 

Claudia,

Glad it worked out.  One thing to note, sometimes they try to give you the cabinets not assembled.  I always have them assemble it at no extra cost.  The worse that happens is they tell you to pick up the cabinets in a day or two.   

How much are you planning on putting into it? That is a good price for Linden.  I search gsmls and njmls as a guest.  I dont have a realtor that works with me.  I just got a hold of the friend i know that has dozens of rental in linden and rahway. he should be getting back to me in an hour or two with his granite guy.  As soon  as i get it, i will forward the information.