All Forum Posts by: Alexander Flores

@Nestor Rosero Before you buy the property go to the place and talk with the tenants. Explain you want to rehab the home and everything, be upfront. At the end of the day in NJ, you cannot do anything to their lease when you purchase the property unless there is a clause in the lease stating that the lease is voidable if ownership of the property changes and the correct amount of notice is given. With it being winter, even with the above scenario a judge would probably side with letting the tenant stay until warmer weather comes. You'll most likely have to honor their lease. If you're buying the property for the cash flow and it cash flows great now, wait to rehab until after their lease expires. If they're a good tenant keep them since a rental is about cash flow. If your goal is truly to rehab it and get a good return then look for a property that fits a flip model. NJ is 100% a tenant state, especially if they have no previous delinquencies. I am not a lawyer by any means so everything in saying is hypothetical. Contact a lawyer.

@Scott Lyons @Scott Lyons Everyone has their own criteria for what a good cash flow will be from a rental. Can you refi and get your money out and then some? What will be your own cash in on the deal? For rentals I care about cash flow and how fast can I get my own money out of the deal.

@Jerryll Noorden The best thing about SEO is that trying something different can reap great benefits. Bigfoot is real, I've seen him on beef jerky commercials.

@Joseph Walsh Yeah I mean if you're buying a property not at a discount then you might look at appreciation because your buying the property at close to it's current value ceiling. If you're not then I don't worry about it too much, especially for a rental.

@Mary Mitchell I wouldn't say a live in flip or a regular flip is a larger investment for a rental. The purpose of a rental to me is that the property will be held over a long period of time which only relies on positive cash flow. Similar to investing in dividend stocks, appreciation is not a determining factor. Short term for our rentals if we need a plan C is that we won't buy a home if there is not equity in the purchase. I look at will I have a way out if the property depreciated and I need to sell sooner than later before I think about appreciation.

@Jerryll Noorden Hmm not sure how to take the reply. Basically was getting at that SEO is a long term strategy that doesn't happen overnight. Google doesn't crawl your site the second it is published and throw you on the first page of search. Ahrefs and other sites that analyze SERPs show that unless the site has a great domain authority it takes almost a year for most sites to rank for even slightly competitive keywords on Google searches. I just know a ton of people who venture into SEO, it doesn't happen fast enough and they give up but that is with everything.

Originally posted by @Michaela Manco:

@Russell Brazil because I keep asking my lender for an update and there isn’t one. They are waitIng to hear back from the underwriter regardIng the appraIsal. l When I have asked all week if we are on track to close Friday I don’t get a clear answer just that they are working on it...

That is the answer you are going to get until the underwriter finishes the paperwork for the appraisal and everything. No one will say we're going to close Friday if there is even one signature they are waiting on since no one wants make a promise that isn't 100% going to happen.

I just think of it as legal speak, they're covering their butt in case the underwriter does not approve the loan due to the appraisal.

I agree with @Jerryll Noorden. SEO is a long term strategy. I have built a couple websites on different topics and SEO does not happen over night. 

For example, for my candle company I built the website over the course of a month. Added all of our products but before we showed up on the first page of Google for competitive keywords, it took over 6 months even though I barely changed the site over that time. 

A website is a must in my opinion but only because it gives you credibility and do not make your site look like a high school kids HTML project.

Currently I run two sites if you want to message me to check them out so you can see how it is fairly simple to make a nice looking site if your take the time to learn the basics.

Originally posted by @Mary M.:

I am learning: why would you buy with no expectation of appreciation? how high of a CAP rate and IRR are you expecting that little appreciation is ok?

When we look at properties for rentals, we strictly focus on cash flow. We don't even put appreciation into our calculations. This could be because we know our market or that we plan to hold rentals for a long period of time. Everything will go up in value over the long run, at least in our area.

Now when I bought my live in flip, I looked at the equity I had right off the bat and the appreciation I was expecting within the 2 years holding period.

@Caron Bracy I have not but Rehab Financial out of PA will give 100% purchase price and rehab costs for flips. We have used them for doing the BRRRR method too.