All Forum Posts by: Andrew B.

If the rent will barely cover your mortgage, insurance, taxes, and HOA fees then you will have nothing left to pay for capital expenditures or to cover yourself if you experience vacancies. Only reason to keep this property is if you are hoping to get massive appreciation on it, which is basically gambling, and you better have a huge sum of cash to subsidize your rental while you pray for the appreciation.

My conclusion...SELL!

An issue I see with this is what happens if a tenant goes month to month and then leave the month before the fee arrives? Your next tenant will get smacked with it as soon as they move in, or possibly you will get it during a vacancy. The cleanest approach in my opinion would be to increase rent slightly and pay it yourself.

I have no experience in this situation, but my first thought would be to tell him that I would not send him any money. He can pay any holding costs out of pocket, and then deduct anything that is DOCUMENTED from your portion when house sells. If he is coming out of pocket, he may work harder to sell.

The above does not constitute professional advice. Perhaps someone with more experience can weigh in.

From what I've read, capital gains exemption only applies if it was owner occupied for 2 out of the previous 5 years. I believe that means if you live there for 2 full years, then sell it before the end of the fifth year you get it. If you sell after fifth year, you get nothing.

Hopefully someone more knowledgeable can confirm my understanding. As always, this is not professional advice, and you should seek it when making your decision.

Thank you for your input @Jennifer Petrillo. I'm aware the agent is entitled to the commission now that she had shown me the property. I tried to see with the listing agent, but her voicemail said to only contact her through buyers agent. That's why I reached out to a different agent.  I'm not worried about backing out due to some unforeseen issues, since it is a condo there are fewer things to go wrong. I am merely curious, what are my rights if I make an offer with no inspection contingency, what are my rights?

I did indeed include HOA fees as apart of my PITI.

if I can get the bank down about $20k I can pay cash, but if I buy it at asking, I need financing. I can get about $30k HELOC, but not sure if it would be a good idea to overextend myself like that, especially since I have very limited value add possibilities, which would allow me to refinance out of it.

@Ricky Butler

If you could share the name of the investor friendly realtor, I would be very appreciative. He cant help with this purchase, but I am hoping to become more active in the future.

Hey guys!

@Ricky Butler

@Christopher Phillips

@Account Closed

A lot of questions have been asked, and I will do my best to answer all.

My purchase range is between $100k-$150k. This is my first purchase, and in fact I was not planning on purchasing anything until next year, but I noticed this hit the market and thought it was to good not to look into. This property is in a highly desirable area of New Jersey, with higher appreciation and very high rents. Purchasing at asking price would mean PITI would be less than half of the high end range I can get for rent, from my research this is very hard to find in Jersey (Jersey taxes are high).

I did not do much research for the agent I am using, (in fact the agent I called sent his partner to show me the properties), I merely am using them to show me the properties I found. I am doing my own due diligence.

It is a condo, so I am not scared of finding many huge issues. (I know working with HOAs can be a huge issue, but that is for another discussion) I saw the inside, and the unit is in much better shape than I imagined (no squatters). I am hoping that there wont be much interest in it because no pics are posted on MLS, but it is a great condo in a hot location so I am not getting my hopes up.

My strategy is buy and hold rental, with an alternate exit of flipping it due to highly desirable location. In fact, this is just outside my target market, only because I originally assumed the area to be out of my price range. It is my ideal location realistically.

After looking through the property I am comfortable waving an inspection contingency. I also believe property is worth a little more than the bank is asking, but I would obviously rather pay less.

I feel compelled to ask though, if I have no inspection contingency, don't I still get a due diligence period where I can back out?

With all this in mind, any advice moving forward? Even if I don't end up owning this place, it could be good experience for the future.

yes. i apologize for using incorrect verbage. the property is previously foreclosed and now reo. been on mls for a week. when i purchased my primary my agent at the time told me that purchasing reo was harder because you may not have a chance to negotiate and typically start with highest and best. typically above asking. im trying to get a better feel for how i should structure my offer if i go for this one, since my fiance is advising to offer 20k less than asking. the reason my agent didnt talk about it was because we are meeting again friday to see another property and discuss more. first meeting was during my lunch break.

Hello everybody. I am currently researching two properties that I am considering making my first purchase into the world of Real Estate. I am considering renting as a buy and hold, or just flipping it. Anyway, I met an agent today at the first property I am interested in and was informed this is a bank owned foreclosure property.

Can anybody give me any advice about what I may need to know if I try to move forward? I am from New Jersey to those that care, and have purchased my own home, but I have no idea how to purchase a foreclosure. Any and all advice is appreciated.

Thank you!

Hello everyone. Beginner from North Jersey checkin in. Im 24 and made my first home purchase last year, and have been obsessed with real estate investing ever since. Main interests are flips and buy and holds. Ive been lurking her for awhile, and planned on lurking for another year while I saved up but I found 2 deals that really interest me, so I' m considering taking the plunge now.

I am hoping for guidance in the purchase process. I found a condo in the same condo complex I live in now. Asking price is $106k, but im hoping to negotiate that down a nice chunk by offering all cash. Fully remodeled units have been selling around $160-$180. Its really only a deal if I can get tbe lrice down around $85-$90. With that being said, can anyone offer guidance? I planned on making an all cash offer with no inspection contigency, and two weeks due diligence period so I can get a contractor in there and then a quick close. I am hoping thats enough, any comments?

What do I need to know or be concerned about going into this? Any key dofferences between purchasing a personal residence and an all cash investment I should consider? I know an inspection and appraisal is unnecessary because no bank is involved, but what else? Thank you all for your time.