All Forum Posts by: Allan Ringler

I hope everyone had a great Thanksgiving. Thanks to all who responded over the last several days. You've all given me a lot to think about.

@Jermell Shavers... I completely agree with spreading $$$ around. I don't want all my proverbial eggs in one basket if I can instead put them in two or three.

@Michael G.... that's one concern I have with the rougher crowd of tenants. The areas that seem most interesting to me are C... maybe C- type neighborhoods. They are primarily renter-type towns and there is no shortage of tenants. My worry is if my ideal tenant would even exist in a bit of a rough neighborhood and if they do, how long it would take to find them.

@Eachan Fletcher... very wise words. I'm just beginning the journey but I have very large ambitions. I agree that positive cash flow can be a great tail wind to grow my portfolio. I'm definitely going into this with the plan to be the best landlord I can be.

@Ryan B.... I'll definitely check out Show 357. Thanks for the heads up! I hadn't given the thought of house hacking much thought until I saw your post. With my current living situation, house hacking isn't really an option. But surprisingly, my wife would be open to moving into a beat up two or three family in a town like Morristown or Montclair, fixing it up, living in part of it and renting out the rest. This could be a really interesting avenue to explore.

@Max T.... I'm trying! I look at what has happened in northern NJ over the last 20 years, what towns are on the up and up, what towns are slipping and what towns have yet to gentrify and there are opportunities to be had. It's just a matter of whether big money will also invest and if local government really wants it.

@Scott Kaczmarek... I love both as well! I just see how hot the market has been and how we lost over a decade of housing price appreciation from 05/06ish to 2015/16ish. Appreciation is never guaranteed.

@Account Closed... I'm planning and crunching the numbers looking at the worst case scenario. CapEx is definitely worked into the numbers. I'm definitely not looking at being a slumlord.

@Anthony Wick... I couldn't agree more.

@John Morgan... congrats on the success! I think now I'm leaning towards cash flow for the first property at least and then when the market pulls back, buying something in a better area in the hopes that I can realize that property appreciation.

@Shawn Coverdell... I 110% agree on the run up. I really worry the economy is peaking and it's overdue for a correction. I once heard someone say that if you get into a cab and the cabbie starts talking to you about an investment, it's time to get out. It happened during the tech bubble, the last real estate bubble, the bitcoin bubble and I worry it's happening again with real estate.

@Mary M.... I'm familiar with IRR. My concern is that all I can do is make an assumption what a property will be worth in a year, five or ten from now.

@Anthony Rosa... I haven't looked much in Bergen or Hudson County lately. I've only been looking at Essex and parts of Passaic. I'll definitely expand the search. Thanks!

@Ronan Donnelly... thanks for the advice. I'm really trying to weigh all options. One big thing on my list is the value add. I'm really looking at purchasing an under-utilized property and then doing everything I can to maximize that NOI.

@Max Vishnev, I'm trying to account for a market downturn that's why I really think I'm leaning towards stronger positive cashflow with weaker appreciation. This way, if the market heads south, I have some pad.

@Jerry Lucker... that's a very interesting avenue to look at. I've read and heard a lot about about seller financing but haven't given it much thought. Definitely something to keep in mind!

@Angelo Mart... thanks for the local perspective! I've even been looking at the Section 8 avenue in Orange and East Orange but the numbers just don't seem to make sense. I've looked at a few listings that need some work, crunched the numbers and wind up cash flow negative. Maybe I need some more creativity?

@Shawn Coverdell... since I'm looking at this as a strictly investment property, I have to put 25% down. Cash is definitely king (especially in this market).

The question for you all... would you rather purchase a property that earns you positive cash flow month over month but very low property value appreciation or a property that barely breaks even every month with greater property value appreciation? This is the situation I find myself in. If I look at multi family properties in Morristown or Montclair, I'm lucky to find something where I can break even month over month but properties there tend to appreciate year over year. And the barrier to entry is very high. If I look at multi family properties in Orange or East Orange, it's much easier to find something that will cash flow positive month over month but these properties don't really appreciate in value year over year. The barrier to entry here is much lower. Ideally, I'd love to find something that will cash flow positive month over month, appreciate in value and doesn't require me to tap out my life savings just to get in. But then again, isn't that what we all want? What are your thoughts? Thanks in advance!

@Kevin Mantell... where do you guys get together?

@Kevin Mantell @Peter Zeoli, I'd love to connect with both of you!

Hey all... I'd love the opportunity to talk with real estate investors in North Jersey (Essex county area). If you're up for coffee, msg me.

@Byron Scott

Congrats on making the jump!

Hello all!  I'm a long time lurker but first time poster.  I'm interested in learning more about real estate and think this place can help out.  I look forward to getting to know you all.