Home Buying in 07020>Question Details

Ocean, Home Buyer in Edgewater, NJ

Currently, living at Avalon @ Edgewater. Looking to buy home in Edgewater, but never bought a property before. Good idea to buy Multi-Fam as first?

Asked by Ocean, Edgewater, NJ Wed Jan 11, 2012

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7
Brian Morgenweck’s answer
The 1st home I bought was a 2-family in Hackensack & it was an absolute home run...Scratch that, GRAND SLAM!!! It was the foundation for a hell of a run in real estate. If you're talking about being an owner/occupant, I think it's a great move. Having someone else pay a good % of the monthly costs while you live there & the property appreciates AND while rates are low & rents are rising?! It's a NO-BRAINER!
Do your homework & be aware of what is entailed in being a landlord. Then, move on it. Don't pay attention to confusion & fear...focus on the opportunity.
0 votes Thank Flag Link Thu Jan 12, 2012
I have lived in Edgewater for 15 years and I have also been a Realtor since 2002. Considering you are asking for advise I will share my personal thoughts. Personally, I have never owned a Multi-Family property, nor would I purchase a Multi-Family home as a first time home buyer. Yes, there are many benefits to owning an investment property however, there are also may frustrations that come along with these benefits. Too many people buy Multi-Family properties with the plans to collect rental income versus having a family member live with them. If this is your plan, my first suggestion would be to only purchase a property that you will be able to pay the mortgage, utilities and expenses if the other units are never rented out. I do not want to sound like a pessimist however, unfortunately, I have experienced many horror stories over the years as a Realtor. New Jersey tenant laws are extremely favorable toward the tenant. With that said, it is extremely difficult to be a landlord in New Jersey. All though it may appear to be a great idea at the time, it may wind up being more of a headache than you anticipated. Unless, you have the type of job which provides flexibility to handle your tenants home repairs, and double as a property manager you may want to give this a little more thought. Our employment rate is unfortunately not where we would like it to be. If your tenant is laid off and can not pay the rent, you will have to spend time collecting this money in a state that heavily sides with the tenants and "their" rights. If asked, my clients and peers will most likely say that I am one of the most positive, upbeat people they know. I only wish to play devils advocate before you make such a huge life changing decision. If you feel confident that a Multi-Family property is the way for you to go or wish to pursue a condo or single family property, then please feel free to reach out to me. I have lived across the street from Avalon in Grand Cove since 2002 and it would be my pleasure to assist you. As you can see I am extremely open and honest with my feelings and will always try to point you in the best direction possible. This is one of the key factors to my success! I hope to hear from you soon! :-)

Joshua M. Baris
2 votes Thank Flag Link Thu Jan 12, 2012
Hi Ocean. Great question.

It really boils down to what style of living you prefer. Some people prefer not having to deal with maintenance, ie maintaining property, lawn, roofs etc and love the idea of living in a building with amenities, a doorman, a gym a pool etc.
Other people really like the feeling they get of living in a home vs what some others call 'hotel style' living. Owning a multi family can be an excellent investment if you are ready to take that on. I feel that people that are best suited to purchase a multi family are those that can afford the house on their own, can afford to maintain a property and qualify to buy the house on their own.

This way, additional income is gravy and adds to their net wealth, and they will be more likely to upkeep, upgrade and maintain the property lovingly therefore retaining and building it's re-sale value versus someone who is just scraping by and starts to let the property slowly deteriorate.

Consider the advice others have given here. There are some gorgeous condo buildings along Edgewater that anyone could fall in love with, and there are multi family homes as well but condo's dominate the area.

Your property taxes will likely be lower than purchasing a condo on the waterfront also.

Speak with a pro! And best of luck!
1 vote Thank Flag Link Thu Jan 12, 2012
Can you name a few condo buildings in Edgewater? Thanks.
Flag Mon Apr 30, 2012
There are pros and cons to everything.

Pros: You'll have income to help you make your monthly mortgage payments. And it's a pretty common thing. Today we are seeing more and more parents moving in with their children to help them out financially.

Cons: You need to make sure you can make the mortgage payments for the time periods when you don't have tenants. You will also need to run credit checks and verify employment for any new tenant to make sure they are financially sound.

Please speak with a real estate attorney regarding what should be in the lease. Always seek guidance from an attorney before makiing a decision like this.

Good luck
Web Reference: http://ninaharrishomes.com
1 vote Thank Flag Link Wed Jan 11, 2012
A multi family can be a good investment. Is it a good idea? It depends on your willingness to be a landlord and learn and excel at managing your property vs owning a condo where everything is done for you. Everyone has a difference tolerance level and motivation. Only you can give yourself the best answer. Best of luck!
0 votes Thank Flag Link Thu Jan 12, 2012
Investing in a muti-family home is a great future investment, But in Edgewater there is not a large amount of these properties beside if they are afforable they are problely going to need quite a bit of money invested to make it rentable. To buy a one family home in edgewater is a great investment because you can move on in the future and rent it out for very good money.
0 votes Thank Flag Link Thu Jan 12, 2012
Buying multi family is a great idea if u wish to become a landlord and get involved in the real estate investment world. If u don't mind dealing with tenants, it is by far the best way for u to go since in the future u could keep this place as an investment property.
If u spend sometime reading the book: rich dad poor dad, u will immediately realize that buying a multi family is an asset vs single family or condo/townhouse is a liability.

I sold hundreds of multi family homes and my office is located in Edgewater on river road. Feel free to call me for free consultation.

Ran Biderman
Group Twenty Six
115 River road, Suite 1027
Edgewater NJ 07020
Cell 201-538-1191
0 votes Thank Flag Link Thu Jan 12, 2012
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