All Forum Posts by: Alek Liskov

@Ray Harrell thank you for the input! The difference there might stem from the fact that their mortgage + insurance is $3000/month (this is in NJ). The rent I'm seeking is $1550/month for a SFH in PA. But your comment is still valid and that's my biggest concern. At the end of the day - I need to look at it objectively. Cashflow is what matters.

Hi BP Community, 

First and foremost - thanks for reading this. It means a lot to someone like myself who has just recently started on his journey. 

I'll cut to the chase. From all of the applicants I have for this SFH, I am gravitating towards this particular family the most.

The good:

• Good income - 4-5X monthly rent
• Good impression/communication
• Stable jobs
• About 2X move-in funds available in the bank
• Good credit scores

The bad:

• Bankruptcy in 2009
• They're being foreclosed on their current house that they're moving out of
• Credit Card debt roughly equal to the amount saved in the bank (Their explanation: they paid for a month of tuition on the credit card)

I know many people would never rent to someone who had a bankruptcy, but it was in 2009. They explained to me that it was because their business failed and they had no other option. I think they will be able to pay on time given their income despite everything else. However, I would love your input!

Thanks!

@Vincent Priore if you know any good agents - please connect - I am looking for one! And I agree with you that rehab properties are the only way to get close to that 2% rule.

@Gali Niv you have to do a lot of the research yourself. I've really started liking Realtor.com for their multifamily filter. Although, as anyone in NJ would tell you, MLS deals are not that great or if they are they don't last long. Anyway, do your research. Look at properties. Use the BP calculator to plug in some numbers and see how it works. Have a good pulse on what a 1/2/3BR would rent for in areas. That's how you can start doing a lot of math in your head.

@Vincent P. congrats and welcome to BP! Glad to hear people are finding success in NJ. It's stimulating to know that you just need to work hard and there is no such thing as a tough market. I understand 100% where you are coming from with "You can to buy close to do the work yourself". I bought a property in the Poconos, PA and even though I had my dad helping and working every weekend, we still couldn't quite do the work fast enough. I ended up contract most of the remaining work. Sounds like you're on a good trajectory. Keep up the great work!

Best of luck!

Welcome to BP @David Da Silva! It sounds like we have very similar strategies. I am looking for a house hack in NJ as well. I also invest in the Poconos, PA. I just read one of your posts about creating a group to "turn around" Neward. I absolutely agree with you that Neward will probably look completely different in the next 20 years so please keep me in mind when you are putting that group together :). 

Listen to one of the podcasts in the 180-185 range to hear about a gentleman who advises that in your situation you shouldn't get your license. It does add a bit of complications to each deal on your end. It really depends. At the same time, prices and thus agent costs in NJ are really high so it maybe makes financial

Anyway, best of luck! Stay in touch! 

There are other very important considerations. For me, the quality of tenants is key. I would take a 1% property with great tenants over a 2% property with tenants from hell any day of the week. Even if you use a PM, you will still have to deal with late rent, evictions, etc. I am sure you work full time and are looking to do this on the side. Same here. That's why I choose the former before the latter of the two situations I described. NJ is definitely tough. I am actively looking for a property to house hack myself, and my criteria is to not pay anything out of pocket. I've realized I will have to get very creative to find such a property. 

The most important thing is to keep educating yourself. Education will help you understand the market, the pricing and the opportunities. Most importantly, education will give you the confidence to pull the trigger when a deal actually presents itself. So keep listening, reading and connecting! And best of luck!

@Munim Jalil I would recommend what a lot of people said and encourage a house hack. Even if you are not living for free, you are building equity in one of the hottest market in the country and getting experience with tenants. If you can't find anything or you don't want to go that route then I would second what @Naum Raz said and point your direction west. I live in NJ and invest in NJ and PA. My parents live in the Poconos and that's where I bought my first investment but the reality is an hour drive is still an hour drive. For you, property management would be a must. But there are plenty of properties where the numbers would still absolutely make sense. The chances of finding a cash purchase for 60K that's in a good shape are quickly disappearing. My guess is this coming winter might be the last chance to snag a deal like that. 

Either way, best of luck! Keep in mind there is no perfect investment. You will make mistakes. It's how you overcome them and the lesson you learn from them that will shape your success as an investor.

Hi BP Community!

Just wanted to share a quick find from NYT today:

https://www.nytimes.com/2017/05/18/upshot/how-tale...

It's from Robert Shiller (As in the Shiller Index), a very famous economist focusing on housing pricing, and the focus is on flipping contributed to the crash. I thought I'd bring it up because I love how Josh on the podcast always quickly points out that many of the claims and numbers should not be used by new investors as they really are over hyped. 

I'd love to hear people's thoughts.

Thanks @Andrew Bosworth for the input. I'm looking for a HELOC in PA myself.

hi @Eric Bradeis welcome to BP! I'm having the same questions as you. For me so far, it's really come down to the numbers. While laws are important, I think for the beginner, finding the right deal is fundamental. Best of luck and keep me posted!