All Forum Posts by: Abdul Azeez

Hello Folks - I just finished several different real estate books including rich dad, poor dad and Investing in duplexes, triplexes and quads. In general I think they are painting a very rosy picture and paper numbers that don't seem aligned with reality. Like in the example of buying a quad, living in one, rehabbing the rest, increasing rents for the rehabbed unit, using the GMR for the area to find a new valuation price for the quad, refinancing, buying another unit, waiting for another year, monitoring the GMR and selling the first unit at a high appreciation, using the proceeds towards a 1031 exchange and repeating the process. I find several disconnects compared to reality. As starters, valuations are not changing that much year over year in compressed markets like NJ. In addition, the whole GMR multiple and revaluation seems like money made out of thin air with no basis in reality. Do I need to take all these books and advises with a bit of salt?

I am mostly worried in lead content on paint for units over 40-50 years. Stephen - Are you licensed in NJ?

I am primarily interested in 2-4 unit duplex, triplex or quads in Mercer and Middlesex counties except Trenton under $150k or single units (condos, townhomes or SFH) under $100k in the same areas. Preferred age of unit is no more than 40-50 years.

Hello Folks - I am interested in finding realtors who are not only realtors but also investors in the NJ areas (preferably central and south jersey) to help me find deals. Can members offer some suggestions?

Regards,

Azeez

Justin - COC analysis included 10% for routine maintenance, 10% CAPEX, 10% vacancy and 10% property management. I considered a 30 year mortgage. I did not consider appreciation.

Greg - so help me understand. So are we saying as long as I am cash flow positive on the rental I should not care that much if my COC is 1%, 5%, 10% or 15%? Obviously I would pick the one with the highest cash flow and COC if I have a choice but in NJ for buy and hold in areas I prefer to look into I am finding cash flow to be positive bur COC around 1 to 2%. Is this OK to consider given your explanation?

Sorry but isn't this completely different from all the analysis and podcasts which recommend a $150 to $200 cash flow per unit and an above market COC return? If none of these are needed then wouldn't it be OK to buy a property where cash flow is zero and just waiting for someone else to pay off the loan over 30 years?

i am not sure if you can differentiate legally based on legal immigration status.

my excel model calculates the same

 So not sure what additional benefit would come from the pro membership only for cash flow analysis. There could be other benefits but as a beginner I am not sure where those other benefits may help me at this stage

My stock investments have yielded a long term return of 7.2% over 10 years. Accounting for risk factor getting anything less than 15% on RE investment does not make sense to me. I live in NJ, so the option of investing out of state is not viable at this time as a starter. What are my options?