1st Flip - CLOSED 2nd Property (Rental) - 2/13 CLOSING.. HELLO!

[Wenner Nunes]

Hello everyone,

Really happy to be here. I've been a longtime follower of the forums and listener of the podcast. I wanted to make an introduction here and be more active in the community and offer some insights wherever I can as I have just began to get my feet wet with my first two deals!

By way of background, I'm in the NY/NJ area and my parents were in the business (mother was a realtor, father was in construction) up until 2013,  and after graduating college I gravitated towards doing real estate myself. Currently I'm an office leasing broker in NYC and doing these deals on the side.

I closed on my first flip project located in Milford, PA on 2/6 and that's currently undergoing rehab for a resale (hopefully within 2-3 weeks the contractor will be done). This Friday, I'm closing on a 3 family rental property in Newark, NJ which will also provide a nice cash flow and help build my portfolio. My long-term goal is to keep building up my portfolio and units using profits turned from flips.

Happy to connect, get on a call, and offer insight wherever I can. I'm also looking forward to meeting other investors in my area!

Let's keep the ball rolling!

[Wenner Nunes]

Originally posted by @Stefano Grottoli:

Wow! That's inspiring! I'm looking for my first deal right now, and can't wait to get my feet wet as well! Do you mind sharing where did you find your deals and some of the numbers?

Thanks!

Sure thing.

Milford, PA (House Flip)

I found this deal through a wholesale I connected with that works out of the Philly area. This was funded through a hard money loan. Numbers are as follows:

Purchase Price: $90,000

Rehab: $20,000 (paint, laminate floors, new finishes (chandelier,ceiling fan, thermostats, light finishes, etc), new appliances, and some landscaping for curb appeal)

ARV: $165,000

Newark, NJ Rental

I found this deal through the MLS and it was officially listed at $299,000. Knowing I had some competition and they did a highest and best offer, I offered a little bit higher than asking as it still made sense. Will be closing on this with an FHA loan. Numbers below are assuming I'm paying rent for simplicity sake.

Purchase Price: $310,000

Unit 1$1,300.00 (3 bed/1 bath) - below market rents

Unit 2$1,500.00 (3 bed/1 bath) - assuming market rents.. will be owner occupied

Unit 3$1,200.00 (2 bed/1 bath)

Total$4,000.00

Potential Gross Income$48,000.00

-Vacancy & Credit Loss$4,800.00

Effective Gross Income$43,200.00

Operating Expenses

Repairs$2,160.00

CapEx$4,320.00

Utilities$1,500.00

Insurance$1,500.00

Property Taxes$2,300.00 (extremely low... had to double/triple check this)

Total OpEx$11,780.00

Net Operating Income$31,420.00

Debt Service$20,169.96

PMI$2,532.00

Annual Cash Flow$8,718.04

Monthly Cash Flow$726.50