All Forum Posts by: Alexander Flores

Hey BP. Currently I self manage my rental properties. I recently have become a real estate agent and have thrown the idea around with my broker about starting to do PM under his brokerage. It's a small office, the brokerage is not affiliated with any of the big companies. Any insights would be appreciated, specifically for NJ if possible. I plan to use the same systems I use for my own rentals, I use Tenant Cloud for the management software. Thanks! Alex

Originally posted by @Andrew G Martinez:

@Steven McCutcheon @Anthony Angotti

appreciate the advice, also will look into homestyle loan at some point, for my area it seems that all the deals I analyze are showing that single family homes in North Jersey may be a tough bet for my first investment. I do have plans to move out of my current market in a few years to Florida or Georgia to continue my journey, at which point the homestyle loan can definitely fall into my plan..

@Alexander Flores

Thanks for the insight, if you ever are looking into investing in the North Jersey area and need any info I'd be glad to help, I grew up in Jersey City and have great area knowledge of my surrounding cities and towns.

Thank you all for the responses 

 You're welcome if you're ever interested down here in Ocean County let me know!

Originally posted by @Andrew G Martinez:

@Alexander Flores

Curious to learn more about your live in flip, I assume a single family, and sold after satisfying the 1 year occupancy term ? Also see you are from South Jersey, what are your thoughts on investing in that and surrounding areas?

I live in Bayonne border line Jersey City where it is extremely expensive (and taxes are through the roof). I have looked into areas like Carteret as well as Cliffwood and Keyport.

Thanks for your feedback and providing a rookie some guidance!

 I was initially going to flip the home but when I saw the amount of equity in the deal I decided to live in the property for over 2 years so that I would not pay as many taxes as if I just flipped the home. I had roommates the entire time so they helped with the holding costs over the period. I currently have the property listed on the market.

I live in and invest in Ocean County. It is a decent area but just all single-family homes unless you want to get into the shore rentals which are pricey. Taxes here are cheaper than up near you but still expensive. The only problem with Ocean County is you go west of the parkway and it is all state lands so there is a small area for homes and investing.

I did a 203k loan for a live and flip. Wanted to do an FHA but the appraiser said the bilco doors needed to be repainted, about 15 ft of baseboard was missing the covers, and a shutoff valve was leaking. They forced me to turn the loan into a 203k.

You just have to make sure the numbers work for the property. Also, some repairs must be done by a licensed contractor so something that might cost you a couple bucks needs to be done by a professional. We ran into this problem, the repairs would have cost about $150 bucks and a few hours of my time but ended up costing us $500 to pay a contractor to complete.

If my math is correct your NOI for the first year, with your 15k in repairs would be $38,388. That would give you a 7% cap rate given you buy it at asking price.

Without the 15k in repairs, your cap rate would be around 10% which is great depending on your area.

Monthly Income = $6350

Monthly Expenses = $1,901

Monthly NOI = $4449

Yearly NOI = $53,388

For repairs and cap x, the amount you should figure is the amount that you need to repair the property. No one can really answer this without seeing the property. Get an inspector in there and figure this out. 

When deciding on the offer price, numbers don't lie. Investing is numbers game and calculations, in my opinion, are the main factor when I decide on a purchase price.

I only have single families but hope my advice helps. Anyone who can correct anything I said would be appreciated!

@Dustin Little We used to use Home Depot but recently switched to a local kitchen remodeler that works with investors in the area. HD quoted us $5400 for a kitchen, that's for laminate and no installation. Our cabinet guy quoted us $3200 for the same kitchen with granite and installation. We saved $500 by installing them ourselves. Perfect for a rental, even if it were a flip it'd be great. Another reason why networking is key.

Welcome, I am in Ocean County myself. BP is an awesome community.

@Steve Reiley Check out Rehab Financial, they're a PA HML we use. Great people.

@Jose Vazquez Thanks for the information I'll pass it along.

Anyone know any cabinet company near Reading PA? Friends of mine live out there and need new cabinets. Figured I'd ask on here, thanks!