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Re: Rent Control
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Just can't stay away
 
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sh-it is go-nna hit the f-an so-on
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Posted on: 2015/2/4 15:47
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Re: Rent Control
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Home away from home
 
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2012/1/11 18:21 Last Login : 2019/12/26 15:30 From GV Bayside Park
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gib?ber?ish I will only buy foreclosures and short sale.
Posted on: 2015/2/2 18:16
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Just can't stay away
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Foreclosed properties are cursed? how did their owners got foreclosed in the first place right?
Dont want the bad luck to transpire onto me. Buy foreclose and flip to make a quick buck, yes, but to move in myself? Nope.
Posted on: 2015/2/2 18:09
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Home away from home
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I've heard a lot of scary stories about foreclosures on TV/news - how risky is it in real life to get into a foreclosure?
Posted on: 2015/1/31 2:29
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Home away from home
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2012/1/11 18:21 Last Login : 2019/12/26 15:30 From GV Bayside Park
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FYI the competition in GV and the area around Liberty State Park is fierce. I have been priced out by developers and the Australians for many of the foreclosures. Where I live foreclosures only stay on the market for about 2 weeks and most times a bidding war starts. Another buddy of mine just scored a nice Victorian in BL for 40k. I love flipping :)
Posted on: 2015/1/30 23:58
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Home away from home
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wow...people talking real esttae..makes me want to look at greenville, bela and west bergen. after reading about people flipping houses in east new york (of all freaking places) after owning for just three months, maybe i should look in these areas.
Posted on: 2015/1/30 23:50
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Home away from home
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2012/1/11 18:21 Last Login : 2019/12/26 15:30 From GV Bayside Park
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This will be my 3rd GV property the other two is a one family which I live in with a mortgage and the other is a 2 family that I just rent out... I am not doing a mortgage for this one due to the price. This is why I prefer to get everyone out and convert the ground floor apt into a commercial space and renovate the upper floors. Since I am doing all the work myself it will take me about 8 months to complete the entire project. There are shit load of foreclosure and short sales throughout the city zip code 07304 and 07305. There are few in luxury buildings as well, my buddy just got one at The Beacon for 210k, if you are looking for foreclosures dtjc there is none. My Realtor is pretty amazing she sends me listing of foreclosures every few weeks. Also if you looking for sweet deals check for sheriff sales.
Posted on: 2015/1/30 23:44
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Home away from home
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I did two buildings on 203k loans (I don't recommend this). The last one I did via a construction loan through BCB. The loan was in part qualified by the estimated rents the now renovated apartments would get. Then the building was refinanced out of the construction based on an average of the value of the property based on rents & improved value. If the mortgage was based on equivalent sales (there weren't any at the time) I would have been sunk. This latter issue was a real pain when I had the only renovated apartments in the area. The only 'comparable sales' were dumps. If you want to renovate, check with the community banks. If they hold their own loans (they don't package and sell them through Freddie Mac or Fannie Mae) you might get financing that is more flexible. A word of warning though (this happened to me) if you hold the investment property under an LLC or other form of incorporation (unless the rules have changed since I refinanced everything a decade back): If you hold a building under an LLC, it is considered "commercial" by Fannie and Freddie. However, a building under 5 units is considered residential. This puts you in a 'no finance possible' nether-world where neither Freddie or Fannie can package your loan. This will cut down on your financing options since the majority of mortgages are packaged and sold through Fannie and Freddie. Something that might mess up buying a home later under your own name: Even if you do form an LLC, you will likely be required to sign the on the loan as a personal guarantor. As a result Fannie will treat that mortgage as 'debt' but will not count the equity of the property. If you hold several properties under the LLC(s), Fannie will consider you to be millions in debt and not eligible to have your personal mortgage loan packaged through them. Freddie does not do what Fannie does. However, if your income is low enough, you get to take up to $25k of passive (real estate) losses against your active income, in the fiscal year that the property starts generating rent income. If you plan to rehab property, you will have LOTS of passive losses. If your adjusted gross income in under $150k, that deduction can significantly reduce your income tax bill. Freddie however, treats passive losses as real losses. So lets say you make $75k a year. Freddie will consider your income is only $50k per year because you took the tax loss against your active income. This will reduce what you will qualify for in a mortgage amount accordingly.
Posted on: 2015/1/30 23:10
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Home away from home
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I'd be interested to know too. Looking to move into a house (currently in apartment that we like, but with two boys it's tough on our downstairs neighbors). Looking at trulia and zillow everything is just so expensive now!!! Wish we had the money to buy several years ago
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Posted on: 2015/1/30 23:05
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Home away from home
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The issue with "delivered vacant" is that you can't count the rents as income towards qualifying for a mortgage. It shows as all expense. But for $75k maybe that's no problem for you. And there's no "legal" way for a landlord to clear the place out other than cash incentives. You'll be on a really long payoff to actually gut a 4U and only get $1400 more. Maybe a few grand each polishing the turds with paint, and new appliances might be a better plan. You can gut later when rents are higher.
Posted on: 2015/1/30 22:52
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Home away from home
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What is the best way to find foreclosure properties?
Posted on: 2015/1/30 22:50
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Home away from home
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Thanks its a foreclosure for 75k the apts are so, so. The rents are $700 bucks around the corner from a light rail station while other apts in the area are going for $1050 a month I rather have it emptied and gutted and then renovate it for the higher rent. Thanks again.!
Posted on: 2015/1/30 21:39
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Home away from home
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Every building I have purchased I had 'delivered vacant'. Only one time did it cause the owner to get pissed off.. but he managed to get his tenants to move anyway. Note though... the places I purchased were in DIRE need of work. Tenants weren't exactly upset about moving given the conditions they were living in.
Posted on: 2015/1/30 21:33
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Home away from home
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OK, Last question can I request to have the building emptied upon closing?
Posted on: 2015/1/30 21:20
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Home away from home
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I remember differently. However, it has been so long since i had that conversation with my RE attorney (haven't bought anything since 2001) my memory may be faulty.
Posted on: 2015/1/30 21:16
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Home away from home
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I think that case was in the context of an under market rent being brought up, not a punitive eviction seeking raise. Still, it prevents a landlord from simply evicting by doubling the rent. But a landlord has no reason to do that unless you're seriously under market or a crappy tenant. In most of the country a landlord can choose to simply not renew a lease, they're shocked at our laws.
Posted on: 2015/1/30 1:12
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Re: Rent Control
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Home away from home
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2013/10/15 19:58 Last Login : 2015/12/30 14:17 From Paulus Hook
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FWIW, my recollection is that the NJ Supreme Court has found a 20% annual increase to not be "unconscionable", so that provision is essentially toothless.
Posted on: 2015/1/29 23:05
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Home away from home
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Your 4 unit prospect will only fall under NJ anti-eviction law. This guarantees lease renewal and restricts raises to something that would not be considered "unconscionable" by a judge. You will also get 5 year "green card" inspections by the state. You would not need to issue rental statements like you describe.
MDM, are you sure about the commercial being considered a unit for RC? When I looked into it years ago while viewing properties, I was told it did not. This makes sense, it's not a "residential housing unit". The big downside to those properties is they are commercial, requiring commercial mortgages with large downpayments and higher rates.
Posted on: 2015/1/29 22:38
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Re: Rent Control
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Home away from home
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2012/1/11 18:21 Last Login : 2019/12/26 15:30 From GV Bayside Park
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I agree to a certain degree, but with so many slumlords I guess we need some control. What baffles me is this.. "All of this combines to create the requirement that a Landlord provide, prior to a taking in a new tenant, a statement that tells the new tenant was the prior rent was. From there, the landlord can only charge the new tenant what the prior rent was (plus any legal capital improvement or other increases)." I am guilty of this I have never told a new tenant what the last tenant paid.
Posted on: 2015/1/29 15:19
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Home away from home
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From my understanding of the law, a commercial unit still counts as a 'unit'. The 5 unit building I bought I reduced to a 4 units in order to be able to charge market rents. The only other way around rent control is to rent to Section 8.
There are some 5+ unit buildings that are decontrolled. This happened during the Schundler administration when the Mayor and the Council decontrolled a number of vacant buildings (I have the list in a file cabinet somewhere). One building I was interested in was on Montgomery. It went into contract days after the law was passed. A couple months later it was being gutted / rehab'd. It would be nice if the city decontrolled all building as part of a new owner substantially renovating them and bringing them up to code.
Posted on: 2015/1/29 14:58
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Home away from home
Joined:
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Thanks Yvonne!!! .
Posted on: 2015/1/29 14:32
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Home away from home
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Rent control is applied to units 5 or greater, not 4 units.
Posted on: 2015/1/29 14:08
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Rent Control
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Home away from home
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2012/1/11 18:21 Last Login : 2019/12/26 15:30 From GV Bayside Park
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Hi!
I have a question for people who own a building with more than 3 units. I am interested in purchasing a building with four units, how is it different from a two family? Also the building I am interested in has four one bedroom apts with tenants currently in each of them. The rents are way below market rate. How much can I raise the rent? Final question would it be easier to change one of the apts to a office or store front to make it a 3 unit.. Thanks!
Posted on: 2015/1/29 12:55
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