Jersey City, NJ Multi Family Deal

[Luis Savery]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Jersey City.

Purchase price: $600,000
Cash invested: $65,000

This is a multi family home investment where I negotiated a phenomenal credit of 32K which I used to reinvest in the property thru renovations, electrical upgrades and other amenities.

This is a long term investment where I am house hacking and trying to learn as much as possible when it comes to real estate investing, managing tenants and running a real estate business.

What made you interested in investing in this type of deal?

This type of deal showed a unique opportunity for additional cash flow and possible future appreciation.
In the New Jersey market it seems from my limited experience that TAXES are deal killers.
The taxes for this property were also very reasonable in comparison to other New Jersey markets.
It seems the community is going to continue to aggressively invest in more developments in the coming years.

How did you find this deal and how did you negotiate it?

I found this deal on the MLS with Stanley Rosario a Real Estate agent I was working with for the last few months.

This property was on the market for a few weeks and a few deals fell thru, and I got the sense the seller was anxious to sell, considering he was moving out of the country.

The negotiating was aggressive to the point were I walked away from the deal and they came back asking what number will have this deal close. I said 32K and we proceeded with the deal.

How did you finance this deal?

I financed this deal with an FHA loan, since I will be living in the property.

How did you add value to the deal?

I am renovating the 2nd floor units; specifically the 2 bathrooms and the kitchen area with contractors.

Also, renovating the first floor Additional Unit (ADU) with an entire makeover of new appliances and renovations.

I am doing some DIY work myself with my brother in law and girlfriend to the first floor and basement area.

What was the outcome?

The outcome was one where the sellers credit helped make the deal work in a great way, because I was able to use that money to get the property in the condition I imagined and look for the long term play.

Lessons learned? Challenges?

I have learned that working with people who are way more knowledgeable than myself helped make this deal happen.

The challenges so far is strategically knowing what to invest in to make the property rent ready. I need to realize I can’t do everything to make this property look perfect but I can do enough to make this attractive to renters.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I recommend my agent Stanley Rosario.

Even more important I recommend people getting connected with the company Streamlined Properties operated by Jonathan Greene and his team of agents and investors.