All Forum Posts by: Adam Anderson

Hi,

In my opinion you would be better off sticking with the long term financing you have on this one already.

The BRRR method works best when you purchase a property (usually distressed) for a significant discount. I have been using this method quite a bit. When I buy I make sure I can purchase & rehab for less than 75% of the ARV. It's not easy to do but when it happens, I can refinance as soon as the renovations are complete and cash out everything I put into it. Here's an example of a SFR I just refinanced last week:

Purchase = $74k

Renovations =$40k

ARV = $195k

Cash out refi loan = $146,250 (75%of ARV)

After taxes and holding costs I was able to pocket about $20k from the refi and the property cash flows about $300/m after reserving for cap ex, & vacancy.

These aren't easy to find, but they are definitely out there. I unsuccessfully tried to buy this one off the MLS last year but kept an eye on it and jumped on it when it went to auction.

Hi @Account Closed,

I have a great lender who works in your area.  Id be happy to fill you in if you PM me

Adam

Hi @Chris Torres,

I live and invest in Sparta & Newton and Hopatcong is very close. The 3 are very different towns. What are you looking to do? I'd be happy to help if I can.

Adam

As a general recommendation when it comes to portfolio construction and traded REITS only about 10% is advisable.  I believe it's a much different situation if you are actively managing your properties, purchasing properties with built in equity and properly allocating reserves for vacency, repairs, ect.  you can take steps to reduce your risk when you buy the hard asset that you can't do when you invest in traded REITS.  I think you'll find many real estate investors that only own real estate and cash.

Welcome @Liz Gagne! Dispite what many say about the northern nj market.... You can find soild cash flow, especially if you're willing to buy distressed and rehab it first.

Adam 

congratulations on your success 

@Kevin Buckley! I personly love the BRRRR method and found it to be the best way to buy rental properties in northern nj.

Adam 

Hi Bill,

I happened to be the CFP you described and I'd be happy to discuss your situation further. If you'd like to chat, PM me.

Adam

Hi

I'm an active investor in Morris and Sussex counties and know a couple who are in Essex. What exactly are you looking for? Id be happy to help if I can

Adam

The vacency rate will defiantly vary by locations and property type, but I'd say it's a landlords markets across the state and probably the country. I think you shouldn't have more than 1 month of vacancy during a turn over....unless you have extensive work to do. I usually begin advertising & showing the property before the tenant moves out

Hi @Joshua Reed,

The cost is going to vary quite a bit depending on size and finishes.  I can tell you the last few I did where around $6K-$7K for a standard 10x12 kitchen with new tile floor, new cabinets, granite tops, and basic stainless appliances.  My bathrooms are usually around $3kish.  I have been quoted 2x this from some contractors so I decided to sub out the work myself.   Always get a few quotes!