All Forum Posts by: Andrew Giunta

Most of the books I read and people on forums like biggerpockets are either investing in low priced markets or buying homes for a long term appreciation play. Im in Bergen County NJ and cap rates are abysmal. If you got a mortgage you probably wont even break on 95% of the properties I have been looking at.

Single family plays are near impossible here, the land and taxes are just too expensive. Im not looking to flip but rather buy and hold. I dont want to be a 3 hour flight away from my properties as I would like to at least be within a 4 hour drive if something went horribly wrong. I would use a property manager as well.

Eventhough im in a better position than most to invest (500k cash) it seems like most markets anywhere near me are either dying but have decent hypothetical returns or are way too far out of range for investment. I would love to hear what someone would do in my situation if they were just starting out. Ive been staring at properties for half a year now, but I just don't know where to start. My goals arent appreciation plays, I need to get at least a 6.5%-7% cap rate with appreciation or if higher than that I could care less about appreciation.

Where would you personally invest if you were in my shoes?

I have no income, but instead a lump sum of cash that I made selling a company. I am currently helping my mother get a mortgage so I will technically share around 220k debt with her, but I have 500k-1m im looking to invest into property. Are there any mortgages available that would let me not show income, but also arent a ton higher when it comes to the rate? I read something about some loans where if you have a 50% LTV they dont ask for income. What would you do in my situation, or is my only option to buy a few properties in cash, establish the income then finance more ?

 I think I might do this instead and look at mostly 3 and 4 unit properties that are a tad more expensive just so I can still have room to buy more in the future. The only thing that concerns me about larger more expensive properties is that I would essentially be trading away diversification for potential growth in the future. 

But if im maxed out at 10 properties I wont be getting residential mortgages. 

I have been looking at rental properties in the price range of 100k-200k. I have decided to leverage them but if I get 10 through conventional financing and I pay 25% down I will still have more that I was looking to invest. Am I better off increasing the down payment on each property in order to increase cash flow per month? I am looking to make this somewhat my main form of income so more cash flow and less stress if the properties are vacant for a bit would definitely be a good thing. Curious what others on this forum would do. 

I'm 24 and have about 500k in cash that I am looking to turn into a business in real estate over the next few years. This will probably be my main business and I am unsure if I will take up another form of employment. Because of this I am looking at properties that generate more cash flow rather than ones that rise in value. 

Unfortunately I live in an area (NYC area) where finding these properties locally is near impossible. Im looking at places around 3-5 hours away that seem to have returns that are desirable, but because I wont be able to actively manage these properties I am very skeptical in buying them. I am really only looking for turn key stuff at the moment just because anything that is super hands on would be hard to work with. 

Ive read stories of people buying properties a long distance away, but I was curious on how the logistics of these purchases go. Do you visit the property often? What are mistakes people make that often hurt them with these types of deals. I will probably be doing down payments of around 25% and looking at multifamily properties. No matter how many times I do the math and calculate returns that look good for me, I'm still weary of what things can go wrong. Any advice is really appreciated and super helpful!