All Forum Posts by: Michael S.

I've been checking everywhere to find this answer, but can't find it (even after asking a HELOC loan officer), so figured I'd try here. Since I'm getting close to my 10 loan limit, I wanted to see if a future HELOC I get is considered a loan that goes against my 10 loan limit. Any thoughts?

Looks like this never took off, but I'm willing to meet up or chat if anyone else is interested in sharing thoughts on Bayonne or other areas of North Jersey.

@Vincent Villani

I would also recommend you read through the Bayonne master plan before you invest to understand how it would impact the purchase you are looking at: http://www.nj.com/hudson/index.ssf/2017/06/bayonne...

@Vincent Villani

Those rents will be likely be difficult to get. For reference, I rent my top unit (3/1) for $1425, but they are great tenants. Market value is likely ~$1550 - $1600. I also live in a nicer part of the city. In a few years, you may be able to get what you are looking for.

Check out Zillow to see what is renting at the price ranges you are looking at and compare what you have to what is rented. You might have a nicer unit that yields that type of value, but it will likely be difficult in a duplex. 

Hi @Vincent Villani

I personally house hack in Bayonne (duplex + livable basement) and found it to be a much better value than Union City or Jersey City for the criteria I was looking at -- rent:purchase, proximity to light rail, access to shopping, low crime, access to parks and more. With the luxury high rises entering the city, combined with additional development (including a Costco this year) and upcoming bike share program, I'm still glad I chose this area as a good blend of an investment / lifestyle choice. I've done some work to my home and am now certain the home would provide nice cash flow for me if I were to ever move out. Also, the commute really depends on where you buy in Bayonne. The higher the street # and the closer you are to the light rail, the better. I work in NYC and have no problems with the commute because the light rail --> path --> subway is generally reliable and frequent on weekdays. Weekends are another story. I'd rather do this than take my chances on buses from Union City.

If you were to buy, I would focus more on multi-family rather than single family. The prices aren't much higher than single family, but the returns are much greater. I've noticed Bayonne has also recently been added as an investment market on roofstock.com if you want to see how the number play out.

Happy to help if you have specific questions about locations. As David mentioned, I'd stay close to the light rail stations since they are where future city development will take place.

Hi @Julie Kern

Congrats on the accomplishment!

I'm curious -- what challenges did you face with your turnkey and wholesale purchases? You mentioned that your best purchases were off the MLS and craigslist.

Hi @Antoine Martel

Invitation sent! Look forward to chatting.

@Dipti A.

Great advice again. Thanks again!

Hi @Dipti A.

Thank you so much for taking the time to share your advice! One of the most frustrating aspects of bringing contractors into my home is that I am never sure who to trust. Specialists tell me that I need to make updates to fit their area of expertise. Even with this, I never gave much thought to the idea of a general contractor. 

I like your idea and will look into both a GC and epoxy flooring.

Thanks again!

I was in a similar situation as you a couple of years ago (in NYC, couldn't find anything local, exploring OOS). I opted to go OOS because, frankly, I thought it was safer. Purchasing a cash flowing home < $150K for my first buy was much easier to handle from a risk standpoint than buying a non-cash flowing home at >$600K. This started my journey in buying OOS. Here are some key tips I learned along the way:

• Get an agent who is responsive, has great ratings and knows the area in and out. Getting someone you trust will be the difference between a smooth first purchase and a nightmare. Same can be said for property managers.
• Make a trip out of visiting a few cities on your list. Meet with your agents in each city to explore the city and potential homes. Even if you don't leave with the home you are interested in, you will have a better sense of what neighborhood / city makes the most sense for you.
• Buy in markets that are growing or have a reason for optimism. While cash flow is great, I like the hybrid markets that also provide upside.

Pittsburgh is interesting to me as well. It is safe, affordable, cash flowing and surrounded by great universities while being relatively local to NYC. It has quite a bit of potential, but I don't like the growth rate of the city as a whole. I may consider in more depth next year.

Hope you find what you are looking for!