All Forum Posts by: Michael S.

Hi all,

Thank you so much for the feedback. I must have missed that there were responses!

@Account Closed

Good advice on the condition report. Glad to hear there are standard leases and application forms. I worked with my buyer's agent to determine market rate and was able to find the standard leases you mentioned. I plan to work with an attorney to fine-tune.

Does anyone here have experience with PSEG's WorryFree program? It looks to be an alternative of a home warranty where service calls are included in the price, but they won't actually repair appliances.

Is it worthwhile?

Hi,

I will be closing on a duplex in NJ where I will live in one unit and the tenant will live in the other. The tenant is currently on an expired lease (going month to month), so I am looking to determine the appropriate steps to be prepared for our first official meeting on Friday (we've met during the inspection and he has been cordial). I'm interested in any advice for the first meeting.

* First meeting general advice -- my plan is to knock on his door to re-introduce myself. I'd then collect a copy of his keys and indicate my interest in signing him up for a full-year lease. Ideally, I'd work with him to determine an appropriate rent price then while asking about any parts of his unit that need to be fixed and any concerns he has with the house I need to be aware of. Am I approaching this correctly? He has been in the unit for 6 years, so has the potential to be a long-term tenant.

* Lease -- any advice on how to put together a lease in the state of New Jersey? Should I work with an attorney or a real estate agent? What is the general cost?

* Property Management -- I'm thinking of buying either PSEG WorryFree or a Home Warranty. I would then give this number to the tenant for any issues so they could reach out directly. Any concerns?

* Other Advice -- anything else I need to consider? I've worked with property managers for all of my other houses, but this will be a new dynamic where I self manage and live in a duplex with the tenant. 

Thanks!

Mike

Thank you all again for the advice. I'm hoping the seller will just agree to remove and it becomes a non issue. Will update the post with the results.

@Scott Upshaw  @Tom W. @Colleen F. @Johnathan Boyle

Thank you all for your advice. My attorney has asked the seller to remove. Will see how this goes, but am concerned about it impacting my ability to get a loan if the seller says no.

Another question -- the test revealed that both neighbors have oil tanks in their back yards. Should I be concerned with oil contamination that would be a result of spills from my neighbors?

I currently have a duplex under contract in Northern NJ that has an oil tank underground in the front yard. Per my attorney, this should be a deal breaker if the seller isn't willing to remove. Since oil tanks and older homes are new to me, I wanted to ask -- how big of a deal is an oil tank? Should I really walk away if the seller won't remove it during the inspection contingency period?

I'm interested as well. Can't make either of the dates above, but would like to get connected with the group.

@Jessica Zolotorofe

Thanks! This makes sense and provides a stronger case for Bayonne.

Hi @Jason Gass

I was actually looking to ask the same question, but figure you beat me too it. Since you are an agent in the area, I'd love to get your answer to your own question as well!

I'm strongly considering a personal multi-family purchase in Bayonne for the answers given by @Jessica Zolotorofe . I work in NYC and my wife works in Exchange Place, so it seems to be the best fit when looking for the best value in a neighborhood with trains, safety and parks. I'm just concerned about the lack of appreciation we've seen in the market. Also, taxes are higher than Jersey City.

Do you think there is opportunity for appreciation in the future in this market? If so, what drivers of appreciation do you see?

Mike

Hi @Ryan Thompson

It is still early, but I feel comfortable with all of my initial property managers, so haven't yet switched. However, having 4 PMs now allows me to have context of what is good and bad. It also allows me to ask for services that other PMs offer when I wouldn't think to ask otherwise.

My process of finding a PM in each market was pretty straightforward. They were either recommended by an agent I trusted or were found through a Google search. If I were using Google to find the PM, I would interview a few who had strong reviews to get a feeling of the team and fit with my goals. 

Part of what makes this process easier for me is that I choose quality homes in strong rental markets that don't require much work. I might start to see cracks in the PM teams once more stressful situations hit.

Hope this helps!