All Forum Posts by: Steven Primiano

I'd speak with an attorney on that. Each state has a maximum allowable increase per year but I'm not sure if something like an HOA fee would impact that.

I flipped a condo and a very close friend lived in a townhouse.  I'm biased, but I won't invest in any property that has a homeowners association unless it's way too good to pass up.  The flip wasn't THAT bad, but there were a lot of little extras along the way that ate into our profit.  I can't imagine a long term hold on a condo as being something I would do.  As @Charles Carillo mentioned, these HOAs almost never have enough reserves long term.  You're bound to have a huge assessment at some point for a major repair like siding, roofing, or parking lot maintenance.

@Jared Aellis, I have experience with rentals in the area.  I'm also a licensed realtor.  It would be great to discuss your real estate goals in more detail.  

@Shauna O'Donnell Welcome to the site.  Personally, if you found your forever home, I'd keep living in it and making it what you want. You're emotionally attached to it and I think that would cloud your judgement if managing it as a rental.  Investments are all about numbers, not emotions.  You only do things that make financial sense, not because you want to live in it someday.

My experience is limited, but I'll tell you what worked for me.  Be open to whatever you might come across.  I bought my first 2 properties 1 week apart because we kept our options open and kept the evaluations objective and strictly numbers-based.  Don't stray from whatever formula you use to evaluate a deal.  

@Andrew Horezga I've come across a few deals that, in order to flip, would require a second story addition.  I don't have experience with that.  It would be great to connect and see if we could make something work should I find another.

@Mike Dymski Normally I would. Looking for long term holds right now. I feel like this is similar to a BRRRR scenario.

Need a sanity check.  I have an opportunity to buy a 4BR rental well below market value.  House was built in 1990 and is in good shape.  I can pay cash and refinance after I close to pull every penny of my investment out.  No major defects, strong rental history with good tenants.  On paper, it has NEGATIVE $200 monthly cash flow when putting 35% in reserves.  So yeah, if I had to put 20% down, no way would this make sense.  But why not pick up a property with no money out of pocket?  Even if I need a major repair down the road like a furnace or roof and have to put money into it, I feel like I'd still be way ahead of the game.  Thoughts?

@Ray B. In my experience there is only 1 reason a house doesn’t move...price. There must be some aspect of the house that is preventing anyone from putting down the amount you’re looking for. It might be something you can address like finishes or renovations. It might be something you can’t like location (proximity to shopping, power lines, busy road).

@Shawn Mcenteer thank you. I stumbled on this page. I am trying to find what specifically the inspectors look for when they come to the property. I read something about fire retardant paint and sold wood doors instead of hollow. Stuff like that. I don’t want to take possession of the property and then find out I have $15 in renovations to bring it to code.

Appreciate the help.

Hi, I’m looking to purchase a 4-family in Monmouth County and am trying to find the requirements or inspection criteria to get a green card from the DCA. Their website is a maze. The current owner has never registered with them so no help there. Does anyone have guidelines so I can estimate costs when I do my inspection? 

Thanks!

@Brett Baginski

Agree with @David Semer and others that establishing your criteria is critical. However the income to rent ratio doesn’t apply. I have 3 units, all Section 8 tenants. You set the rent and the tenant must apply through your process as well as to Section 8. If Section 8 approves, they will set their assistance level and the tenant’s share based on their own criteria.

Your success with tenants is all about your screening process, criteria, interview, etc. One of my tenants came to see the house with an envelope full of recommendation letters from her employer, current landlord, and priest. No surprise she is a model tenant. Your success with tenants is all about your ability to screen for good tenants, not where your rent comes from.

Steve