All Forum Posts by: Ryan Delauz

@Jason Bass I purchased it in Carteret NJ. 

@Brandon Sturgill I had money saved up which I made in the stock market. I also had to take a $50k loan on my 401k @ 2.25% to purchase the building and do the renovations. Luckily I was positive on the cash flow the entire time or it really could have gone south quickly. Definitely taught me to keep a larger reserve for the unexpected. 

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $560,000
Cash invested: $170,000

Purchased my first multi family building in June 2018. Had almost everything that could go wrong that did. Had to sue previous owner for fraud and stealing security deposit from tenants and ended up winning in court. Real estate attorney I used for closing did a horrible job. Going to fix up other units after tenants leave. Bought for $560k and looking to sell close to $1,000,000 in slightly over a year. With the 6th apartment would leave me roughly a $4,000 cash flow a month.

What made you interested in investing in this type of deal?

Father owns apartments and rents them out.

How did you find this deal and how did you negotiate it?

My current real estate broker sales person had the listing and he told me about it. Ended up getting my real estate license and joining his brokerage.

How did you finance this deal?

Commercial loan with 25% down

How did you add value to the deal?

Fixed up rental units and increased rents. Currently getting variance to add a 6th unit.

What was the outcome?

Significantly increase cash flow and equity in property. Looking to do a 1031 exchange after I finish fixing the place and increasing rents.

Lessons learned? Challenges?

Learned ton of lessons. Tenants left without saying anything since they had no security deposit. Had to fix apartments. From being in my first law suit against previous owner. Dealing with a section 8 tenant. Tenants messing up apartment not paying rent. Filing evictions. Had arguments with another tenant but managed to repair that relationship.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Highly recommend mortgage broker I used. Currently work with him recommending him to my real estate clients

Investment Info:

Large multi-family (5+ units) commercial investment investment.

Purchase price: $560,000
Cash invested: $170,000

Purchased my first multi family building in June 2018. Had almost everything that could go wrong that did. Tenants left without saying anything since they had no security deposit. Had to fix apartments. Had arguments with another tenant but managed to repair that relationship. Had to sue previous owner for fraud and stealing security deposit from tenants and ended up winning in court. Real estate attorney I used for closing did a horrible job. Currently getting variance to add a 6th unit. Going to fix up other units after tenants leave. Looking to do a 1031 exchange after I finish fixing the place and increasing rents. Bought for $560k and looking to sell close to $1,000,000 in slightly over a year. With the 6th apartment would leave me roughly a $4,000 cash flow a month.

What made you interested in investing in this type of deal?

Father owns apartments and rents them out.

How did you find this deal and how did you negotiate it?

My current real estate broker sales person had the listing and he told me about it. Ended up getting my real estate license and joining his brokerage.

How did you finance this deal?

Commercial loan with 25% down

How did you add value to the deal?

Fixed up rental units and increased rents

What was the outcome?

Significantly increase cash flow and equity in property

Lessons learned? Challenges?

Learned ton of lessons. From being in my first law suit against previous owner. Dealing with a section 8 tenant. Tenants messing up apartment not paying rent. Filing evictions. Dealing with hard tenants.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Highly recommend mortgage broker I used. Currently work with him recommending him to my real estate clients

Have a tenant that stopped paying rent and think there are people illegally staying in the finished attic. Its not livable space as there is no fire escape. Can I call the town and have them kicked out for that? Could I screw myself over by doing that?

I am purchasing a property with a section 8 tenant I would like to evict. They apparently are on month to month can I give them 30 day notice to leave the property? This is in Carteret NJ.

@Patrice Penda thanks the property is in Perth Amboy

I am looking to purchase a 4 family that has rent control in NJ. Does anyone know of rent control laws apply to an owner occupied building?

@frank chin Do you have your property management business under an S Corp?

I am purchasing a 5 family that has under market rents. One of the units will be empty and the other 4 units are being rented for $1,000 (3) and $900 (section 8). They should be on month to month lease when I take over the property. What would be the best way to increase the rents? Current market rent for 2 bd 1 ba is $1,400. Gradually increase it on them? Not renew their lease and rent it to someone else at market rate? Section 8 tenant? Go to housing authority and get them to increase it? Dont renew lease and get another section 8?