All Forum Posts by: Ro Maga

Jersey City's Master Plan both acknowledges and laments the widespread conversion of 2-family buildings into multi-families, and the recommendation is made for the city to try to minimize such conversions. That said, by adding the basement as living space to the first floor unit, you are not asking for a change in legal use, but you are (officially) altering the building in ways that will affect it's potential occupancy (and you will need a Certificate of Occupancy from the city before you can move in, rent, etc). If the basement was finished legally, that is, with permits and inspections (even if it was used as an illegal unit later), you should be able to do what you propose without having to offer your first-born in return. If no permits were pulled at all, who knows what hoops the city will make you jump through. I'm going to echo @James Masotti, and suggest that your best bet is to ask the City directly what you would need to do precisely to get the change done. While you're there, you can also ask about any permits pulled on the building.

Here are a couple of basement refinishing guidelines from other New Jersey towns just to give you a general idea of what the process entails. Every municipality will have a slightly different process/requirements, but they all have to abide by the NJ's adoption of the International Building Code. 

http://www.peqtwp.org/documents/construction/finis...

http://www.southplainfieldnj.com/spnj/Forms/Buildi...

Good luck with this!

It sounds to me like you're not quite eligible for #1 or #3, they both have restrictions (low income and 55+) that seem to rule out a 22 yr old investor. Besides of being depreciating assets, they also have the added challenge of additional HOAs and monthly fees. The house in Asbury Park might have potential, but renovations might put you beyond your initial budget. There's is also the cost of coastal insurance. You should look into renovation loans as a way to maximize your buying power.

Where things can get difficult as well is dealing with insurance. It is my understanding that illegal dwellings are one quick way to void a policy assuming you can even get one in the first place. I know these illegal units can be very enticing. Around here, they can be the only way numbers work... And they're SO common, but the bottom line is that, without a variance, you will most likely run into substantial trouble with your lender, your insurance, the city and your future tenants at some point or another. I don't know if the "roommate" split is the solution, but it may be worth looking into it.

Oh, one more thing: in many cases, foreclosed properties will still show the last owner, not the bank that foreclosed on the property. 

There is a state-wide database you can easily find by googling "nj property tax." Monmouth county comes first -- maybe because Aberdeen is the first town in alphabetical order, but all you have to do is scroll down to your county of interest and then select the town.  Here is the link: 

http://tax1.co.monmouth.nj.us/cgi-bin/prc6.cgi?&ms_user=monm&passwd=data&srch_type=0&adv=0&out_type=0&district=0501

Is the replay still available? I was not able to log in Friday and neither of the two links posted get me beyond the initial screen image of the blab. Any other way to get access to this?

Check out AnnieMac Home Mortgage. They're headquartered in NJ, but they service loans nationally. I found them here in BP while looking for a HomeStyle Loan. We ended up going a different direction, but everyone we spoke with there was excellent and seemed very experienced and knowledgeable regarding these renovation loans. Good luck!

Hello BP!  I am looking for an architect with experience dealing with Newark's Central Planning Board/Board of Adjustment. We are working to change the legal use of a property from a duplex to a 3-family and fixing what is currently an illegal conversion. The property is in an R3 zone meets all the criteria for a 3-family under the revised zoning plan, but we are right on the fence with parking and landscaping requirements... so we'd like to work with architect who's done this kind of work before, specially since the implementation of the new Zoning and Land Use regulations last spring.  Any recommendations?  

Thanks in advance!   

@Patricia Bercy, Here is some advice from my limited experience looking in the same area.  

1. For properties going under $100k, you are going to need a 203k renovation loan -- FHA or conventional alone won't do unless you get a turnkey condo, but that's not the plan. You obviously need to live in the property for at least a year with 203k FHA loan, or use a HomeStyle loan with 20-25% down. Be sure to find a loan officer with lots of experience on renovation loans because that will make a world of difference. On that note, shop around for better loan terms, just an additional $10k would give you more options.

2. If you are going to owner-occupy, you also want to benefit from the OO preference periods offered by HUD, Homepath, and Homesteps. This is going to be key because cash investors quickly sweep up all the good deals, and a sub-$100k multi-family in an ok area is a good deal.

3. Mind the taxes. I see some folks have suggested Irvington and the Oranges, and while I think the Oranges could be workable, Irvington is a sad story. You don't want to buy a $70k older duplex, that needs at least $30k in work, and comes with a $11,000 tax tag, only to have a limited tenant pool. 

4. If you don't intend to live in the property and have all the time and patience short sales take... as well as a realtor who's quick to file bids and won't mind waiting a bit for his/her commission, that might be another option.  Though, I hear the competition from cash buyers is steep here too. 

5. If you are a first-time home buyer, and you are not a high income earner (yet), call the city halls and/ or community development agencies of the cities that interest you and ask if they have any programs available for aspiring home owners.  You may have to take classes or agree to live in the property for x number of years, but you may get from help with your closing costs to partial forgivable loans. I believe East Orange, Newark, and Elizabeth have/had a forgivable loan and/or tax abatement programs. Check also La Casa de Don Pedro. 

6. And keep saving and pay off any debt. Every paycheck your position will get better and better. 

And 

7. Don't give up or give in to buying something that doesn't add up. 

Hope this helps  

Thanks for starting this thread.  Please do share any info you get on granite sources.