Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm a first-time home buyer and will be looking at small multifamily properties in Central NJ. I will be utilizing owner-occupied financing on the property. I'll be focusing my search on 4-unit properties where I'll have no more than 3 tenants that I will have to manage. Knowing myself, a 3-unit would probably be best. Overseeing 2 tenants seems more manageable than 3, but I understand the higher number of units would cover me in cases of one or more vacancies. What do I need to be mindful of during my property search? I've been reading up on RE investment books and reading online forums so far. I'd love to hear some feedback from landlords and others in the NYC metro area particularly.
My area has a major university, is surrounded by major hospitals, good schools, and is only 30 to 45 minutes from NYC, depending on your mode of transportation. My biggest concern is how the future pans out with the pandemic, housing market, and what that means for rentals next year. Rentals don't typically stay vacant for long around here - even at this moment. My current landlord never has a vacancy for longer than a month, which seems to be standard for the area. Average rents for a 1BR in my neighborhood are around 1200, and 2 or more bedrooms can go for 2K+. I'm just very nervous hearing that some landlords are ditching their rental properties at the same time that I'm starting my journey to becoming one. FYI, I plan on staying in the property long term. I believe the term is called house hacking. Tips? Thanks.
I've owned a 4 unit house that I occupy for a few years now and the one thing I probably didn't anticipate as much is the maintenance. Every other month we seem to be working on something in one of the units or the exterior of the house. Just make sure whatever you have budgeted for maintenance costs is realistic. 4 units is great for the income potential but it comes with added expenses as well as it is 4x the likelihood of things needing to be fixed. My house is nearly 100 years old, so your mileage may vary.
So if you haven't already, find yourself a good reliable handyman/contractor. Other than that it's probably everything you would except that comes with being a landlord.
If you pay to have everything done it'll eat up an awful lot of your profit right off the bat.
Tenants will tear things up. That's just the way of it. You're going to be doing a ton of repairs for breakages you'd never experience in your own home. "So tell me again, why you tried to flush an entire roll of paper towels and three pair of cotton socks down the toilet?" "Now let me understand why you tore the door off the hinges rather than walking next door to my place for the spare key when you locked yourself out?" "So you tell me you have never had a dog, much less a big dog, yet there are claw scratches all over this door and the wall next to it, up past my eye level, and SOMETHING chewed this hole in the door jamb I can put my fist through..." "You know, you're supposed to take the garbage out, not just shove it into the bottom kitchen cabinet." "If you see mice, call me and I'll put out traps, don't try to shoot them with your .22 at 3 in the morning..."
And to attract a better grade of tenants, you'll need to refresh every time you rent to a new outfit, which might just be repainting, or might be more significant.
So get a pair of overalls and a tool kit and learn how to use them.
Keep in mind that laws are becoming more landlord-adverse every year. You may be looking at a permanent eviction moratorium where you have to depend on the good will of your tenants to pay rent because you can never get them out of there.
So my recommendation would be to go as premium as you possibly can - offer a premium product, attract the best tenants, charge high rent, and keep the property meticulously obsessively maintained and updated. Chasing the lowest cost is rarely a good long term business strategy unless you've got the resources of a Wal Mart or Avalon Apartments.
I'm a first-time home buyer and will be looking at small multifamily properties in Central NJ. I will be utilizing owner-occupied financing on the property. I'll be focusing my search on 4-unit properties where I'll have no more than 3 tenants that I will have to manage. Knowing myself, a 3-unit would probably be best. Overseeing 2 tenants seems more manageable than 3, but I understand the higher number of units would cover me in cases of one or more vacancies. What do I need to be mindful of during my property search? I've been reading up on RE investment books and reading online forums so far. I'd love to hear some feedback from landlords and others in the NYC metro area particularly.
My area has a major university, is surrounded by major hospitals, good schools, and is only 30 to 45 minutes from NYC, depending on your mode of transportation. My biggest concern is how the future pans out with the pandemic, housing market, and what that means for rentals next year. Rentals don't typically stay vacant for long around here - even at this moment. My current landlord never has a vacancy for longer than a month, which seems to be standard for the area. Average rents for a 1BR in my neighborhood are around 1200, and 2 or more bedrooms can go for 2K+. I'm just very nervous hearing that some landlords are ditching their rental properties at the same time that I'm starting my journey to becoming one. FYI, I plan on staying in the property long term. I believe the term is called house hacking. Tips? Thanks.
So I am a landlord and have found that most landlords get themselves into trouble because they refuse to learn the landlord-tenant laws and process. So, I am sure there is a rental association in the area/state for landlords. Take any and all classes that they offer. Out here they offer an 8-hour landlord Bootcamp training and then break things down further from there on ending tenancies, fair housing, law updates, etc. I take the classes regularly and have learned so much from landlords that have been doing it for 30 years.
Find that organization and take any classes that offer. Do that one thing.
So get a pair of overalls and a tool kit and learn how to use them.
Keep in mind that laws are becoming more landlord-adverse every year. You may be looking at a permanent eviction moratorium where you have to depend on the good will of your tenants to pay rent because you can never get them out of there.
So my recommendation would be to go as premium as you possibly can - offer a premium product, attract the best tenants, charge high rent, and keep the property meticulously obsessively maintained and updated. Chasing the lowest cost is rarely a good long term business strategy unless you've got the resources of a Wal Mart or Avalon Apartments.
That's crazy! I must be the best kind of tenant in the world. Whenever I've ever had issues in apartment units I've lived in, I've always fixed them myself unless it's something major like electrical. Mainly, because I know I'd fix it better and faster than my landlord would. I have very high standards when it comes to where I live and its condition. For example, it bothers me when fellow tenants don't put the trash bins back in their proper spot, rather than wherever they feel like placing it on that day. It makes sense that I go premium, as you suggest. This was very helpful. Thank you.
So I am a landlord and have found that most landlords get themselves into trouble because they refuse to learn the landlord-tenant laws and process. So, I am sure there is a rental association in the area/state for landlords. Take any and all classes that they offer. Out here they offer an 8-hour landlord Bootcamp training and then break things down further from there on ending tenancies, fair housing, law updates, etc. I take the classes regularly and have learned so much from landlords that have been doing it for 30 years.
Find that organization and take any classes that offer. Do that one thing.
Thanks! I completed one of those landlord Bootcamps online and earned the certificate. The one you speak of sounds far more in-depth. Anyone happen to know the organization's name though? I did a quick Google and found NJAA, but I don't believe that's the organization.
Thanks! I completed one of those landlord Bootcamps online and earned the certificate. The one you speak of sounds far more in-depth. Anyone happen to know the organization's name though? I did a quick Google and found NJAA, but I don't believe that's the organization.
Silverfall is a reputable realtor in the Salem Oregon area, and my best guess is that she is referring to Oregon Rental Housing Association.
We are in the process of dumping all of our multi units - and I couldn't imagine my tenants knowing where I live let alone living next to them.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
