I have a single family in NJ that will be vacant as of 7/01, a 3b/2b on 4 acres with a cottage, 1b/1b (not a legal rental by itself). Taxes and debt service $2400mo., maintenance, 500 mo. One family has been renting it for 3100 and collecting 600 from a family member living in the cottage, the family member would like to stay in the cottage should I rent the main house.
Once they told me they were moving I decided to list for sale and/or rent. It has been listed for sale in the mid 700’s for two and a half months with some interest but no buyer as of yet and it is listed for rent with more activity. I was planning to hold it until spring of 09’ sell and use the equity to invest in multiple regular sfh (In PA).
A tenant has come along with great income (over 300k), high revolving debt and poor credit-550 (balances over 100k and too many revolving accounts?). They are seeking the main house only for 3k and willing to give more up front, sign a longer lease, do a lease option, etc.
Besides this property I have not had any other rentals in NJ.
An attorney in NJ has expressed that in NJ you can not take any more then 1.5 months as security and the first month, you must register the tenancy with the township and notify the tenant in writing within 30 days of the name and address of the bank holding the interest bearing account with the deposited security.
Should any of these items not be just as NJ law states, he says I could have a very difficult time removing the tenant should an issue arrise and a judge would side with the tenant due to not following procedure. Following procedure he feels he can get them out with only losing a month should an issue arrise, not following procedure they could get away with too much. I have not brought up the cottage to him…
For my security;
Should I lower my asking price and see if a buyer comes?
Should I wait for a different tenant?
Do a short term lease option with as much down as I can get?
Rent to them without worry?
Offer to rent to them for 3800 and they can collect from the cottage 600 +200 for utilities?
Break even each month and not rent the cottage?