All Forum Posts by: Ryan Donohue

Quote from @Noyessie Hubert:

HI All,

State: New Jersey

Quick question. I have 4 identical units of property where all the units need a little work to be on top. 3 units are occupied and 2 of them are paying way below market rent. They are currently paying $1050 and the current market rent is $2000. As you can guess, they have been there for a very long time now ( almost 5 years as I heard ).  And one of them is paying $1600 on a month-to-month lease.

What will you do In this case? Should you evict them? should you try to negotiate a new lease with them? 

Just for more details:
- At the current listing price, my monthly payment on the property will be $6000. I'm using an FHA Loan. I may switch to a 5% conventional loan to avoid the risk of failing the self-sufficiency test. Still looking for one.

- the current rent will be around: $3700

So we will have a difference of $2300 + additional fees like garbage, cap expenditure, rehab loan for the 4 units ( around $350 per month ) and others. Let's say almost $3000.

Thanks for your help.

I was in the similar situation when I bought my first 2-family in 2017 in North NJ where I was house hacking. The tenant on the first floor was there 5+ years prior and rent was far below market(they were M2M and I believe around $1200 and market was $1600). 

I was able to negotiate with the seller to meet with the tenant before I bought and I let them have the choice to leave or go and if they stay then sign a lease for $1600 per month. They signed and knock on wood still going well with the same tenant, 7 years later. I raised rent once to $1700 now but the stability is more important for me. Obviously, the unit is very outdated with them being there 10+ years. I give them the garage, driveway, and I do lawn maintenance. 

Make sure there's no rent control and try to cover your a$$ before you buy so you're comfortable and cut out risks. Inheriting a tenant can be a blessing or a nightmare so doing the same screening you would for a new move-in would help. Get a feeling if they're married to the unit or if they might flea if you raise rents. It's a balancing act and that's what landlords need to do to cover risks. DM if there's any other questions or I can help in anyway! Best of luck :D

Congrats @Steven Catudal! That's how I got started in North NJ! No regrets whatsoever on starting with house hacking! 

I took an online course with Terrie O'Connor Realtors Real Estate School and it was great. Passed the in-class exam and state exam first time. They're based in NJ so I'm not sure if it would matter if you're out of state. 

Investment Info:

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

Purchase price: $50,000,000
Cash invested: $50,000

Limited Partner Syndication

Quote from @Olu Oguntoyinbo:

Hi! Im looking to invest in a multi family property with the NYC/NJ area. This would be my first investment property. With everything so expensive within the east coast how can work cash flow positively? Especially with high interest rates

 Hey Olu, 

It's definately hard to make properties pencil from day 1 but my reccomendation would be to practice practive practice underwriting deals to know a deal when you find one. You will get a feel for rents in certain towns and home prices. Some towns you will find a cheap two family where tenants are paying far below market and you can then strategize what you'd do if you bought it to make the numbers make sense. Now if the time where true investors shine and can still make money. Let me know if I can help anymore! 

Quote from @Jose Henriquez:

Looking for an investor friendly agent in the Jersey area ! Looking for a 3 or 4 unit turnkey rental property.

 Hey Jose, 

I've been a landlord in North NJ since 2017 and I'm an agent at KW in Ridgewood, NJ. Would love to help and give any advice I can. Never any pressure from me, just love for the game. :D

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $130,000
Cash invested: $175,000
Sale price: $550,000

Full Cycle Pre-Foreclosure > ShortSale > Fix N Flip

Quote from @Ivana Timmers:

Hello everyone, 

My name is Ivana Timmers and I'm from New Jersey. I am starting my journey into to real estate investing looking to do wholesaling , I would love to connect with anyone who has knowledge on the topic. I am looking forward to connecting and working with new people. This is a journey I am eager to start I guess you can say I am all in!

 Hi Ivana, 

I did wholesaling for a few years from 2017 - 2019 and I found it pretty difficult if you don't know what you're doing. The best technique I found was D4D and use the 'sniper' method. You find an abandonded property and look it up and see it's got issues then you track down the owner and never let go. I rarely used postcards, just finding their phone number and keep calling. Times may have changed but after spending a lot on postcards, online ads, bandit signed(yes even in North NJ), I found D4D then lookup the owner and keep a short list to focus focus focus on. Hope that helps! DM if I can help more!

Quote from @Erica Calella:

Quote from @Joseph Elci:

Hello All, 

I am hoping to have invested in my first property before the end of the year.  I am wondering if anyone has any recommendations on well-established groups that host meet ups in north / central New Jersey. 

Thank you!

 Following because I'm interested in finding one in NJ as well!

I started one in Northern NJ on Meetup called REINJ - Real Estate Investors of NJ. It's small right now and mainly just for networking and as we grow I'll bring on speakers and various panels. DM for details. 

Quote from @Joseph Elci:

Hello All, 

I am hoping to have invested in my first property before the end of the year.  I am wondering if anyone has any recommendations on well-established groups that host meet ups in north / central New Jersey. 

Thank you!

 I started one in Northern NJ on Meetup called REINJ - Real Estate Investors of NJ. It's small right now and mainly just for networking and as we grow I'll bring on speakers and various panels. DM for details