Help Me Take Next Step

[Michael Krassos]

Hi all, I am new to real estate investing and have been educating myself for the last 2-3 months. I feel ready to take the next step but want to confirm what my next steps should be.

I will start with a buy and hold strategy in Northern NJ, rent, and sell once the market peaks. Then with profits look to possibly buy notes, liens, or something else - I'll tackle that when ready.

Currently 2/3 Bedroom homes in my area are selling on MLS for 200-350,000. I have seen short-sales and other properties needing repair for 150,000. I believe there is potential appreciation to 400,000 or more in next 5+ years. This is a good area with great schools, etc.

I'm thinking I would buy for less than 200k, put 20% down, take a conventional loan for rest ($140,000). Taxes and insurance will be another $10,000 per year.

Am I above my head in this Northern NJ market?

If you agree there is money to be made I'm thinking to do the following next, please advise:

1. Talk to Mortgage Brokers to confirm conventional mortgage is a possibility.
2. Build relationships with Realtors in area to confirm demand for rentals, and to provide leads.

Any help, guidance much appreciated.