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All Forum Posts by: Adam Pervez

Adam Pervez has started 31 posts and replied 67 times.

Post: Investing out of New Jersey

Adam PervezPosted
  • Posts 67
  • Votes 22
Quote from @Sam McCormack:

@Adam Pervez

I agree with @Remington Lyman , you should build your core 4 and from there you can feel better about any market. Lower price for houses you could go to a midwest market, again pretty much what Remington said with the big Ohio cities


 That seems to be the market people are gravitating towards.

Post: Investing out of New Jersey

Adam PervezPosted
  • Posts 67
  • Votes 22
Quote from @Remington Lyman:
Quote from @Adam Pervez:

Hi All,

I am interested to know which cities have been good areas for investment. I have heard that Columbus, Indianapolis, and a lot of the states in the Central Region have been good areas to invest in. I am looking to house hack and can move anywhere with my occupation being fully remote. I have also looked into Rochester, NY as well. Curious to know what other cities are worth looking into in this market.

Thanks!


It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s long-distance investing strategy and consists of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to invest in any market confidently.

As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.

Thanks for the input! I agree that having a REI team is crucial for investing in any area. It's good to know that there is a platform like this makes it a lot easier than it was many years ago.

Post: Investing out of New Jersey

Adam PervezPosted
  • Posts 67
  • Votes 22

Hi All,

I am interested to know which cities have been good areas for investment. I have heard that Columbus, Indianapolis, and a lot of the states in the Central Region have been good areas to invest in. I am looking to house hack and can move anywhere with my occupation being fully remote. I have also looked into Rochester, NY as well. Curious to know what other cities are worth looking into in this market.

Thanks!

Post: Townhome Rental or HouseHack

Adam PervezPosted
  • Posts 67
  • Votes 22
Quote from @Jeff Costa:

Are you still in the due diligence period and getting cold feet? Or are you firmly under contract and must perform? I'm going to assume the former.

The answer is: it depends on what your goals are. If cashflow is what you are after (based on your comments), you may be cash-flow negative for some time. If you can stomach that (paying INTO the property each month), then move forward. If you are buying for appreciation over longer periods of time, then you must, by definition, be comfortable with negative cash flow. In both scenarios you seem to have purchased a liability in the short-term. In the long term, rents go up and so does appreciation, which helps offset the negative cash flow.


 Hi Jeff,

I have begun my due diligence period. I am looking to hold long-term rentals. My goal is not really appreciation in the property but to eventually cash flow. My goal is to house hack; ideally, I am looking for MF. I am looking into a townhome only because of the area I am in (Charleston), and the property's location is very desirable.Based off the rent and the mortgage I would have to pay, not taking into account any operating expenses, I would still be paying around $800.00 a month even fully rented with a tenant. My goal is to keep it as a long-term rental. I am fine being under but I wanted to get some feedback on how people would approach this. This would be my first rental. 

Post: Townhome Rental or HouseHack

Adam PervezPosted
  • Posts 67
  • Votes 22

Hi All,


I am currently under contract for the following property: https://www.zillow.com/homedet...


I managed to get a price accepted under list but with interest rates and what the rent in that area would go for, I would still be in the negative. Now I know I should be looking long term but I believe that if I am having to pay more than what my income would be, I have a liability. I am looking into other renting options for this property such as air bnb or renting travel nurses and other corporate personnel. I just wanted to ask my fellow BiggerPocket Members what you have been doing during these times with high interest rates on rentals. Are you looking into other financing options?

If you have more questions about this deal, let me know and I'd be happy to provide more detail. 

Feel free to share any of your stories!

-Adam

Quote from @Shawn Mcenteer:

Hi @Christopher Munoz You may want to attend our Next REI event. I just announced for September 12 in Morristown. We get a huge crowd and this next event will have special guest speaker who has been feature on BP pod cast. Check out the events on BP or DM me if you can't find it.


 Hi Shawn,

Where can I sign up for this event?

Thanks!

Post: Under Contact for my First House Hack

Adam PervezPosted
  • Posts 67
  • Votes 22

Hi all,

I am currently under contract for my first househack which is a Duplex in Phillipsburg, NJ. I am very excited! I wanted to get some input and make sure I am doing my due diligence. I initially submitted my first offer without seeing the property (usually I wouldn't do this but the numbers were pretty good when I analyzed it) since one of the units was occupied and the listing agent did not have the keys for it. I called the listing agent and left messages to provide pictures of the inside of the unit that at least was vacant and was not shown on the listing which I found on Zillow. 

When I saw the property, the tenants left all of their belongings in both units. To make things more interesting, the tenant that lived in the unit was admitted to a mental facility and declared that he did not want any of his belongings back. He left his SS card and Driver's license. 

The property is not in the worst condition but needs some rehabbing done, (painting, floors, cleaning, new water heater, landscaping). I have already notified my lender and will be contacting my home inspector this week to discuss times to inspect the property. I am also in contact with my attorney who I just had my realtor send over the contract.

Here are my questions:

Since I was not able to see what was inside, would this be a perfect opportunity to negotiate the seller being responsible for junk removal?
Should the seller be responsible for returning the SS card and drives license or handing it to the police?

Am I missing something crucial in this due diligence period?

If I missed some info, let me know I can provide it.


Thank you in advance!

-Adam



Post: How much earnest money for a duplex?

Adam PervezPosted
  • Posts 67
  • Votes 22
Quote from @Matthew Crivelli:

10k - 15k?! Bro - tell them $500! @Adam Pervez

If the deal falls apart and you lose $500 its not a big deal. If you put down 15k you better be sure as hell you are going to be the new owner. 


 Right?? I thought the amount was really high. I was leaning towards 1% of the purchase price with the right contingencies. 

Post: How much earnest money for a duplex?

Adam PervezPosted
  • Posts 67
  • Votes 22
Quote from @Aaron Gordy:

Earnest money is very important. If your realtor told you that it wasn't important then that should be a red flag. The amount of earnest money is dependent upon the demand for the property. Typically 1% is sufficient


 Thanks for the feedback, Aaron!

Post: How much earnest money for a duplex?

Adam PervezPosted
  • Posts 67
  • Votes 22
Quote from @Sergey A. Petrov:

As others mentioned it is a sign of your seriousness. Even though it is refundable, dangling that carrot has some merit to it. I am usually in the 5% +/- range 


 I appreciate your feedback, Sergey!