All Forum Posts by: Andrew Galeano

@Matt Dickens hey Matt, its okay. These things happen. Dont get discouraged. Wether it is your first rental or 50th - it was going to happen. I would say just evict them but with these crazy times, im sure all tennants are aware of the fact that they cant be evicted. I would try to be compassionate with them. Let them know hey man this is tough times For everyone. But I cant continue to let these things happen because it makes it even tougher on me. I would like you to stay if you can obide by the lease, keep trash clear, NOT make alot of noise late, pay rent on time and in FULL. (And yes chek with state laws there is usually a grace period) Evictions are expensive but how much longer is their lease? You can ride it out take the 100 short and just not renew the lease (depending how much longer it is). Whatever it is you decide to do let us know but dont be afraid to get out in front of them and talk to them. Its either take charge of your buisness or watch it crumble. Keep us updared. Good luck

Hey guys -

I was trying to get a genral rule of thumb on operating expenses for a rental property.

I know it would vary by location but I would like to hear what are the %’s for you guys.

Currently out of the total gross income

20% goes to taxes and insurance (Jersey City 15 minutes from Manhattan) + flood insurance. And 10% is going to utilities. That leaves me 15% for maint/capex/Vac

This was my first house hack and although I am currently handling the property mgmt side - my next deal ideally would have enough room for 10% extra for that. As of now I dont mind handling it and I’m actively learning to set it on cruise control - I would like the option in the future to hand it off If I chose to.

Thanks for your input guys I look forward to hearing it!

@John Teachout

Wouldnt say the exonomy was good - id opt to say, “the house of cards was a little stabler”

@Meryl McElwain

Hey what is a good rule of thumb to come up with prices for

Labor on

Paint/sq ft cost

Vinyl floor/sqft

Upgrade bathroom/ sq ft

Kitchen remodel / sq ft

If any lol

Hey Can anyone point me in the direction to any good contractors in the Newark NJ area? Hs anyone worked with any reliable fair priced contractors for rehabs toward flips here?

Hey everyone

I had a question - would I be able to borrow just the down payment + rehab from a private lender? Or would I have to borrow the entire asking price from the private lender? The numbers work so much better if I just borrow the down payment and rehab but Im unsure if there are any restrictions against that or any issues the bank may have

Whats up BP Family! I was wondering whats the best way you guys like finding comps or the ARV?

- close proximity properties that are similar in bedroom/bathroom rooms & sq footage that have recently sold?

- Getting comps from your realtor?

- has anyone ever called a property Mgmt company and asked?

Im trying to do my first BRRRR / Flip & I know how crucial that ARV is since i would be using a private lender.

Everyone feel free to chime in! Thanks again!!

@Tom S. Hey Tom,

How would a local bank lend me the full purchase price and rehab? I know theres such thing as a FHA 203K but I wouldnt be able to do this because i recently FHA'd my current house... or would I have to put down the 20% and they may lend on the repairs?

even if the bank doesn’t allow me to finance and repair on their loan, would they allow me to pay for an appraisal for the arv? If I tell them im going to rehab this property and I would like to refinance with them ?

@Ryan Blake yeah I actually met him at an REIA! Thanks thats helpful!

Hey everyone,

So im currently thinking of putting a single family property under contract.

Here are the numbers

Purchase Price: $155,000

Rehab: $70,000

Arv: 325,000

I recently House hacked my first property in New Jersey.

Because of this, I am limited on money to invest.

I am planning to use Private $ loan for the full purchase and rehab @ 10%.

My biggest fear is if the property gets appraised for less than the 325k Comps i get from my realtor (which I will also do due dillegence and confirm those #’s) and I am unable to cash out refi.

Does anyone know the process of private $ and How I would be able to convert to a conventional loan if im unable to cash out refi and pay the Private Lender his $ ?

**I do not have the property under contract still must do an inspection + get a estimate on repairs from a GC, so even though I feel the repairs would come in less, thats pretty much the most im willing to go unless theres room for negotiation on the purchase price **