All Forum Posts by: Sant S.

Agree with Doug O. 

I'm interested in doing this for Hudson County as well.

I would be interested to meet up as well. Let me know the details.

Nice.  You have good rental numbers.

I am doing something very similar to you in Weehawken, NJ.

Bought a 2 family for 615k.  Rehab is roughly 100k. 

But my rents are 2k for the upstairs 2/1

Hopefully, 3k when we move out and rent out the "owners unit" of a 3/2. 

It's a size able concern. Over 1k. I called the town to arrange the final water reading. Seller hadn't paid for water usage for an entire quarter. The property closed near the end of the quarter. Seller got a final bill for his prior quarter of usage plus the portion of the final reading. 3 months passed from closing and my water bill came. My usage is there plus his unpaid quarter of usage. So I am now being billed for roughly two quarters of usage when I have owned the property for one quarter.

I recently closed on a multifamily property. I got my water bill for my first quarter of usage and there is a balance the prior owner did not pay. The city the property closed in has a standard policy that water debt transfers from with the property to the new owner. The seller is refusing to pay. I have spoken to my closing attorney and he indirectly has placed the blame on the title company. Title company is placing the blame on the closing attorney. Who is at fault here in your experience? Who should pay this bill? How should I go about resolving this?

1k / year for gas/heat since tenants pay for heat and hot water.

2k for W/S.

Hello all,

I closed on one of two multifamily properties below in late 2013. I wanted another set of eyes to look at the deal numbers and give me some feed back on one of them. After reading this posting I am wondering if I made the right financing decision.

http://www.biggerpockets.com/forums/49/topics/83899-30-year-of-15-year-refinance

A little background. I hold this property along with 3 others on the side while working full time. My income from my job helps out with any shortfalls in cash flow.

Property: 4 family in Jersey City. C / D Area. Purchased Vacant as seller died prior to closing, so filling it with tenants wasn't his main goal. His kids sold property to me.

PP: 235K

Financed 176k @ 4.125 over 15 years

Taxes are 7800 / year.

Heat: 4 seperate boilers. I pay for common lights. roughly $50 a month

Insurance: $1900 / year

Property Manager: 10% + broker fee of 1 month rent for placed tenants.

4 units are rented for total rental income of $3900 / month. two section 8's and two non section 8.

I also had to put in roughly 15k to get this property ready to rent. Walls to create extra bedrooms & closets in 3 units, painting, updated kitchens... ect Too long to detail but it was money needed to be spent.

First wanted thoughts on the overall deal and if it made sense to do a 15 year mortgage instead of 30 year. I was offered a 30 year @ 4.625. There was a difference in payment of ~$400.

I could have done a 30 year amort. The lender I worked with offered that loan type. But my goal is to own the property free and clear in 20 years, so I wanted shorted term I could qualify for. I would have taken 10 years if they let me. My full time jobs income would come into play if there's a cash flow shortfall which I am expecting some months. The lender is BCB community Bank. Very good to work with but things don't move quickly so you need patience. Other lenders have lower rates but they never close. There is always some pitfall stopping you from moving forward two months into the process that kills deals. Been through at least 10 transactions that ended with sunk costs and no closed deal.

Property is located in Jersey City Heights. Bus lines to port authority and journal square path station are 2 minutes away.

Hello all,

Just over one month ago I finally closed on my first multi-family property. It is a 6 unit property in Jersey City. Below are the income / expense numbers & acquisition costs. Property was purchased in a LLC.

INCOME / EXPENSE

Purchase Price $500k

Down Payment: 25% or 125k

Commercial Loan: $375k

Amortized over 20 years, first 7 years at locked in at 5%. Then loan adjusts to 2.5% over FNYS rate. I intend to hold the property until the loan is paid off.

Debt expense is roughly $2400 / month

Annual Tax: $10,500

Insurance: $3,500

Heating expense (Nat Gas): roughly $4850 / year (One boiler for entire building & two water heaters)

Estimate expenses at 5% of Gross Income

Annual Rent Roll: 70k

ACQUISITION COSTS:

Lawyer: 1k

Appraisal & Environmental: $2300

Tank Sweep, LLC Set up, Survey, Misc: $1500

Title Fees & Bank Attorney: $5K

Bank Origination Fee, Gov Record Fees: $3k

The property did come with one unit vacant which I filled this month. All units are up to date on rents. There is some minor deferred maintenance. Stair case between third floor and roof need to be strengthened. As every time I walk on them I feel like they are ready to collapse. Good thing these stairs are only used when someone needs to access the roof. That is the most urgent on the maintenance list. All else is minor, like siding maintenance.

I am managing this property while maintaining my full time job. I am looking for feedback of the above figures. Also, this is my first multifamily property and I just feel like I am missing tasks as days go by. I have read up on Jersey City rent control. Filed the necessary annual forms. Intend on using a reputable accountant to do my taxes this year as with an LLC it’s not advisable to do your own taxes. I go to the property roughly 2-3 times a week since its 10 minutes away. Check the common halls, basement, utilities. I collect rent checks in person even though I have a PO BOX set up and the tenants got a welcome package from me and I have re-signed all leases as my LLC as Lessor & tenant as Lessee’s. Is there a starter guide on biggerpockets for once you acquire your properties? or any feedback from investors in similar situations as me?