All Forum Posts by: Sandra B.

Mark Gee It is very funny you say that about Jersey City vs Hoboken because I always felt that way too! JC was still very much transitioning when I bought, but I always preferred the creative vibe there versus the yuppy frat party in HB. In 2012, everyone said I was crazy to buy so close to the projects. By the time I left, it was like everyone forgot about them and no one was worried about living on Jackson, Monroe, Madison, Jefferson. Have you noticed lower demand or increased concern about those streets? Yup, tons of equity now in the property. 1/1s in the building have sold recently for about double what I paid. The current renters' lease isn't up until July. Hopefully they will renew again, but if not, it wouldn't kill me to scale back the rent a few hundred bucks for a couple of years. I'll keep a closer eye and perhaps offer them a small decrease to incentivize them to stay if the price is out of line next spring. Thanks for the input.

Looking for insight from those with boots on the ground.

Bought a 2/1 in downtown Hoboken in 2012.  The unit was a condo conversion from low income housing in an 8 unit brownstone 3 blocks from the projects.  Got it for a good price pre-construction and was essentially a new build, new roof, central A/C, W/D in unit, dishwasher, bamboo floors, new kitchen with granite, 16 ft ceilings, small loft area, skylights (yes, it is the 4th floor in a walk up).  Refinanced in 2013 to a 15 year.

In 2015, rented the unit for $2600/month myself through Craigslist to great tenants. This rent covered all expenses on the 15 year mortgage, insurance, and HOA fees with small profit that got eaten up on paper by LLC expenses, depreciation, PM and accounting fees, etc. In 2016, rented in 1 day from afar through a realtor for $2675 with multiple offers to more great tenants who have renewed their lease.

Just for funsies, I was looking at rentals in Hoboken.  Is it just me, or is the market softening? I'm seeing what look like great updated apartments, with a lot of the most sought after amenities (even parking!) offering to cover realtor's fees, provide gift cards, etc.  Prices seem to be stagnant or perhaps slightly lower than a year ago?  Are others seeing this, or I wrong?

If I'm right, what is driving this? All the uptown development?  Less expensive competition in JC Heights?  Or is there a more critical change in the market that I'm missing. 

My plan for this property has always been buy and hold, essentially forever, since the dynamic in the market requires no work on my part to rent or manage the unit.  But now I'm wondering if the fundamentals are starting to shift, managing a headache from 3000 miles away would not be fun.

In the state of California, where the op is located, mutual walk through with a checklist is required unless tenant waives that right.

Is there a reason you're not working with a realtor? I understand you might be at the "research" phase, but it still makes sense to let someone set up the search for you and to provide insight into these different neighborhoods. You have thrown out a lot of things: access to specific transportation, city wage tax, property taxes, proximity to center city, budget. Prioritize those and then set your search based on your priority. I haven't lived in the area for a few years, but have lived in west Philadelphia, royersford, and tredyffrin and still own businesses in manayunk and queen village. There are some options. But do you actually want to live in these places, especially without a car (Norristown without a car, no thanks) and what type of tenants would you attract? There are not a lot of legal duplex properties in many of these areas. House hacking is probably a more realistic expectation than purchasing a legal duplex in your budget, in a neighborhood that you would want (without a car) that would attract high quality tenants, and doesn't require a ton of rehab (read cash). If you're committed to staying urban and car free, as others have said, Germantown, east falls, manayunk, roxborough, and brewerytown could be options. Think you're priced out of conshocken/west conshy, unless you're willing to take on a serious fixer. I personally would not buy in Germantown without having intimate knowledge of that neighborhood. There are micro neighborhoods, desirable and less desirable streets. If you make the wrong decision, you could have trouble renting and limit future appreciation. Try looking for a recent rehab that has runway left on a tax abatement, that could help offset the wage tax. If you're open to being suburban and taking on a car (which, if you combine the 3.93% wage tax with what you're paying for public transportation, that might just cover your car expense), phoenixville actually has a pretty cool little downtown area they've been working for years to develop and still have affordable options. Tredyffrin, while housing prices are higher there, has extremely low property taxes, no local tax, and there are some deals to be found near Paoli hospital and in Berwyn by the high school. Norristown is actually quite large and diverse. This is another instance where knowing the neighborhoods matters a lot. You might also be able to find something in Blue Bell. Set your priorities about your budget and lifestyle, find a realtor (or two, maybe one in the city and one in the burbs), and start spending time in your target neighborhoods to really get a feel if that's a place you want to live.

I don't understand how the lawmakers who proposed this legislation don't see potential unintended consequences.  At least as an owner with skin in the game, there is motivation to vet short term rentals guest, limit the number of occupants per unit/bedroom, keep the property in good condition with maintenance after every turn, etc.  I can envision a scenario in which many of these properties in vacation communities convert to LTR, as they are not a primary residence, and the tenants conduct illegal sublets through craigslist, friends, etc.  The net result is the same for the community with less oversight and vigilance, along with the aforementioned decline in local property values.  Regulate and tax, I get it.  The municipalities want their piece of the pie.  But don't limit the rights of property owners without considering all the potential outcomes and secondary/tertiary markets that could be created.

@OP As others have stated, it would help to clarify your goals. Personally, I have 3 goals: 1. Maximize tax write offs 2. Find a place to stash excess cash to diversify risk from equities assets 3. Outsource long term equity/principal pay down to tenants. With these 3 goals in mind, I don't give a hoot if the property cash flows. I conduct an analysis based on if it breaks even for me after the tax deductions (I have a w-2 job, 2 businesses, and a few properties, so this is critical for me), lot size, and location. I buy in A+ locations with solid to high end finishes, places that attract no headache tenants with high credit scores and good jobs. The properties cash flow 4-5 years in and in the meantime I'm building equity, getting a tax write off, and spend very little time, money, or energy in property management. Exit strategy can vary - could sell the lots to developers to build multimillion dollar homes, retain as long term income stream, or 1031 to a similar investor or own/Occ. If cash flow is your priority, San Pedro, Carson, and Torrance might have some opportunities in your target area. Fountain Valley could be a place to look, as well.