All Forum Posts by: Jon Lafferty

Good stuff @Troy Sheets and @David Ross 

The site looks great. I'm looking forward to watching the progress on this property.

Awesome post, I've really enjoyed reading the documentation of your progress.  It does a great job showing what this looks like in a practical format.

Thank you for sharing

Hi @Chudney Wesley and welcome to BP from another Southern NJ investor. Another option you may wish to employ is to find a bank willing to give you a line of credit against your homes. I have done this in the past and been able to get rates as low as 4.x %. 

Good luck.

Thanks to everyone for the comments.

@David Semer this is definitively a big forced appreciation play. If I can manage the rehab properly and at or under budget I should be left with a good amount of margin. 

@Scott Weaner @Alexander Merritt that boardwalk removal is going to cost me an additional permit for removal at $50 but will actually save me $20 annually on taxes talk about great ROI lol

@Barbara G. I worked with the JScott rehab analysis worksheet and added a few line items so I am feeling pretty good about the working numbers.

Kitchen - $2500 - total not including finish and rough plumbing or paint / drywall work

kitchen cabinets. $900 (Great craigslist find) - Here is a shot of the cabinets 

counter tops, Corian counters came with the cabinets

stove, Electric - $500-700

dishwasher, NA

sink, came with cabinets

refrigerator - $1000

washer dryer hook ups - part of rough plumbing work, residents will provide w/d

heat/hot water - new electric water heater @ $250

Bathroom total - $1700 - not including finish and rough plumbing or paint / drywall work

Painting $1000

Flooring - $2330 - We are keeping / cleaning the exisiting kitchen 12x12 tile floor, we are installing allure vinyl plank floors throughout the dining room / living room bathroom and porch, carpet in all bedrooms, existing tile in mechanical / washer / dryer room.

I added up these numbers from my rehab analysis spreadsheet. My total ESTIMATED rehab costs are at $18410

Looking forward to an update next week to include - demo, subflooring, and rough plumbing.

hi David, welcome to BP. Check out sjreia.org for our local reia meeting. I believe there is an ocean county subgroup that will meet closer to you.

In the meantime network on BP and be sure to check out the ultimate beginners guide. It's super useful whether you are a beginner or not.

hope to see you at a meeting

Jon

I've enjoyed reading so many of these deal diaries that I wanted to add one I am working on right now. I really think there is a ton of value added to our community by sharing what the life cycle of a deal looks like at every step.

The Subject of this deal is a 3/1 rancher build in 1920. I own a home in this neighborhood and really feel like it is a sweet spot for my area due to great price to rent ratios and lower than normal NJ taxes. 

This is one of those deals that I made an offer and was rejected many times but the property had been on the MLS for months and eventually they came around. I told the agent I would be speaking with her monthly until they sell to someone else or accept my offer :)

Asking Price: 38000

Purchase Price: 20000

Rehab Estimate 18000

ARV: 70000

Taxes: 2400

Insurance: 600

Rent estimate: 1000-1100

This will be the largest rehab I have managed and will be documenting it every step of the way. I am performing the demo myself but 99% of the real work will be performed by professional trades.

So far I have had an electrician, plumber and GC in the home to bid / inspect and begin work.

Everyone loves pictures so here goes

Outside before:

Living Room before:

Bath before:

Classy bathroom ceiling:

Kitchen before:

Porch/ Sun room before:

Hi @Paul Rodriguez and welcome to BP. From my research both of those are great areas for buy and hold in the city. I think they are a little more up and coming than West Philly which is a big rental market.

Reach out to Troy S I know he does some work in the Brewerytown section of Philly. He will be able to give you a boots on ground perspective.

Good luck

First of all welcome to BP @Patrick O'Neill  

I would say 3 things:

1: The cost for a pro membership is very small considering the return offered by the community, files, podcasts etc.

2. This is a way to give back and support the BP community 

3. Who knows you may be able to get some good local clients. I know there are quite a few investors in the Philly area.

I'm just about to install some Allure flooring in a rehab I'm working on. I'll post before and after pictures as well. I did lay a luan sub floor just to be cautious. Since I live in NJ and it is freezing here right now I have to wait until the gas is turned on to complete the install. I was able to pick this up on sale at home depot for .97 sq ft

@Daniel Mcconnell checkout the sjreia website. They have sub groups all over including ocean county. I was just at a meeting tonight with around 50 peoe in attendance. Great opportunity for networking.