All Forum Posts by: Rick Estacio

Hey @Eric P.! It surely has been some crazy times in the real estate market post covid. We have seen the real estate market explode especially down here in Manasquan at the Jersey Shore. My family owns a STR on the beach in Manasquan. In retrospect, we didnt have anyone cancel for Summer 2020 and saw increased demand for Summer 2021. Rents have been really pushing up with the increased demand to "work from home" in a nice place. Between my real estate license and own family home that we rent I have seen a good amount of demand for rentals. Its very difficult to find a rental in Manasquan and surrounding areas because people really enjoy getting to the beach in the summer. Summer 2020 I saw alot of New Yorkers with Vacation homes that are selling up north to move down to the shore.

For context we rent our beachfront home for $6500-7000 for a 3 bed / 1.5 bath. I just listed my neighbors 4 bed / 3 bath beach side home for $10k/ week and have successfully rented 5 weeks at that price. We have it listed for July 24th to September 24th. If the beginning of the summer was available Im VERY confident I would have the whole summer rented at or near $10k per week.

The Jersey Shore is alive and well and has not seen a drop in home prices or a drop in rental demand. Even in the winter people are updating their homes and looking for a place to stay or people are selling their homes and need a place to rent while they look for something in the market.

If you want to talk about the Manasquan Market or the Jersey Shore as a whole. Lets connect!

Hey @richard - I've seen the same market dynamics up in Long Branch NJ. where do you list your short term weekly rentals? MLS, Airbnb, vrbo? I have a place in Long Branch I'm considering renting out for this summer.

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Hey Joe - Which town?

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Originally posted by @David Rabinowitz:

@Rick Estacio yes this one worked. Beautiful listing!

It’s inspiring to you that you don’t have to be ocean front to get bookings.

For sure. I own a place near by and this one appears frequently rented.

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Originally posted by @David Rabinowitz:

@Rick Estacio would you be able to send me the link? When I copied that to airbnb it just brought me to their home page. Id love to see that property

https://abnb.me/qsBoj85H5jb Sure. Does that one work for you?

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Youtube TV

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@David Rabinowitz - https://abnb.me/YClu7YlMSjb

This 3 br house is about a mile from the beach and seems to be constantly rented with a lost price of 800 to 1000 per night. Was purchased for mid 400’s totally renovated not too long ago and went straight to Airbnb.

I think anything within a mile of the beach is probably safe.

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Originally posted by @Daljit S.:

Hi BP,

I'm a new investor looking to close on my first house hack in North Jersey! I was able to find an awesome property and get my offer accepted. I'll be able to house hack and reduce my living expenses significantly, allowing me to save up more for my next deal. After I move out, the property will cash flow based on my estimates. I'm currently in attorney review and the only caveat is that there is an underground oil tank.

The seller is refusing to remove the tank, and will only pay to have it legally decommissioned in place. For those of you with more experience or have run into a scenario like this - would you move forward with the deal knowing that the seller will not remove the oil tank and will look to legally decommission it? Or would you pass on this opportunity?

I'm interested in learning about the pros and cons of accepting the sellers terms and getting is legally decommissioned or walking away from the deal if the risk of buying the property with the underground oil tank is too great.

Thanks!

Congrats of finding a good deal. It’s tough to do these days. Did you discuss the tank with your attorney? He should have more experience than anyone with seeing deals with underground tanks. I’d also recommend calling your property insurer to see if they will insure it with a decommissioned tank that hasn’t been removed. https://www.cranfordnj.org/bui...
this site says most insurers will not insure a property with an unground tank.

Also, you need to make sure your mortgage company will lend on a property with an underground tank. Most will not.

It’s a huge liability risk for you, the insurer, your lender, if there is an underground tank because it could have previously leaked (need soil tests) and could cost 100k plus to fix and you as the new owner would be responsible for if the tank had leaked or does in the future. Without an EPA certification that soil has been remediate, you can’t get a CO and can’t rent it out.

If you (1) get a certification that the tank is decommissioned, there has been no oil leak and there is no possibility of a future leak, and (2) your insurer will insurer it, (3) your mortgage co will lend on it, and (4) your township will issue a CO, then I’d possibly move forward. However, removal with certification of no prior leaks seems like best option. You’ll need to negotiate with the seller who will pay for it. It’s sellers obligation but if it’s a great deal maybe you pay for it for them.

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Originally posted by @David Rabinowitz:

@Rob Elder thank you for that input. for some reason I had a feeling it looked too good to be true. Do you know of any shore points where a regular condo, or sfh has a lower cost of entry? 300k or less?

For north/central Jersey, If you're willing to take on a fixer upper, you can probably find a SFH for 300-400k in Long Branch, NJ. I have a 2 year old and we move the quieter northern end of the boardwalk, within walking distance of hustle and bustle of waterfront restaurants, bars shops carousel, etc in Pier Village. STR rates on AirBnB (800-1000/night in summer) for a SFH are astronomical compared to the purchase price and this is one of the few Jersey Shore beach town with a reasonable entry price (though prices are rising rapidly, up~ 25% annually).

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Originally posted by @Michael Dasilva:

@Rick Estacio Hey Rick, I am exclusively in SFH long term rentals. My average tenant has been with me for 3-4 years. I see you have a property in Long Branch as well. Would be interested in the type of rental you are operating.

That’s great. Long term tenants = truly passive income. Nice.

I'm focused on SFH's only as well. Currently finishing a gut renovation on a SF personal vacation home, but also will be closing next week on a SFH in LB I plan to rent out. Really debating long term vs STR right nowX. The rates for Airbnb and monthly summer rentals in Long Branch are so good right now, I'm leaning toward the summer rental (June to end of September) then winter rental (October to end of May) model.

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@Michael Dasilva - Hey Michael - Would love to hear more about your properties in Long Branch. What type of units do you own, are you doing short or long term rentals?

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All Forum Posts by: Rick Estacio

Rick Estacio has started 1 posts and replied 47 times.

Post: Coronavirus and vacation town impact?

Post: GC/Architect Needed - NJ Shore

Post: Jersey shore short term vacation rentals

Post: Jersey shore short term vacation rentals

Post: Apple TV vs Roku vs ??? for STR

Post: Jersey shore short term vacation rentals

Post: Removal of Underground Oil VS Legal Decommission of Tank

Post: Jersey shore short term vacation rentals

Post: Investing in Monmouth County, NJ

Post: Investing in Monmouth County, NJ