All Forum Posts by: Antonio Figueroa

Seems Hudson is a Class A market so prices are higher for properties but since rentals are about $1,000 cheaper than NYC counterparts you will get better quality tenants and lower vacancies and appreciation.

With NJ having the lowest unemployment rate in the US (so I have read at Marcus & Millichap) the Class C markets like Essex county can provide a better ROI you just need to know what parts of Essex you would feel comfortable visiting. After living in Newark for most of my life I know what parts are "war zones" and what are worth a look (North Newark/Belleville).

I am in the same boat, just finishing up 1 single family and 1 condo sale and moving into multi families now so best of luck to us and everyone :)

Investment Info:

Retail buy & hold investment in Jersey City.

Purchase price: $415,000
Cash invested: $5,000
Sale price: $502,000

2 bedroom
1 batch
1200 sqft
condo

What made you interested in investing in this type of deal?

Jersey City is growing in leaps and bounds. The fact I was less than 5 minute walk to the transit which would take me to Manhatten in 30 minutes was great.

How did you find this deal and how did you negotiate it?

I live in the condo and saw new units being built so spoke with the "house agent" to get the details.

How did you finance this deal?

Conventional with 20% down

How did you add value to the deal?

The bathroom was large in size but had no storage and vanity. Spent money to build a closet and add a large vanity with stone top.

What was the outcome?

After holding for 3 years the appreciation has driven the value up and we are under contract for $502,000.

Lessons learned? Challenges?

Being it was brand new the taxes at closing turned out to be incorrect and were doubled in a year! There is also a tax abatement which will expire in 5 years which put us in the mindset we would pay even down the road. We were already renting at the market maximum so that coupled with our HOA going up made it a slow bleed but ultimately a good ROI thanks to appreciation.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

This time we decided to work directly with our tenant who wanted to buy the property. Before deciding on a price we spoke with 3 agents to get an idea on what it could sell for then set our price at what we think would make sense.

Investment Info:

Single-family residence buy & hold investment in Roselle.

Purchase price: $250,000
Cash invested: $14,000
Sale price: $265,000

This was a house I purchased to move into, long story and a divorce later it became a rental. Single family, 3 bedroom 1 batch.

How did you finance this deal?

FHA

How did you add value to the deal?

House was rented out and destroyed, I had it appraised and it came in at $180,000. After 10 years of owning the house had not appreciating, I was loosing money and was underwater so it was time to sell. My father was a part time investor and did a lot of work himself which I observed since age 9 so I am relatively handy. I targeted $13,000 in repairs but ran over by $848 this included some labor help, material and 2 60 yard dumpster rentals.

What was the outcome?

The house is under contract for $265,000, learned a lot of skill's details along with investment concepts especially how repairs can drastically bring value.

Lessons learned? Challenges?

First timers get an agent come in to give you ARV then learn how you can do that.
Know what your limits are or understand you will spend more time on a project.
Refinishing hardwood floors is not as hard as you would expect if you have the correct tools (get the sander, edger and buffer worth the time it will save you!) STAIRS on the other hand SUCK because of all the details are and the DEVIL LIVES IN THE DETAILS. Thank goodness for carpeting!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I went down the path of FSBO for 4 months with 5 emails from investors to show for it. During that time several agents came by but one stood out due to his personality and the fact he was going door to door instead of just a phone call. Pete Moriello at Advantage Reality was given the property to list on a Tuesday, he had a professional take pictures and video (on his dime) on a Friday, an open house Sunday and on Monday I had 3 offers at and above asking.

@Vince Padalino I am starting off in the Elizabeth area and probably making a mistake trying to manage this duplex myself but more to the fact I am going to need to replace the heating system (steam boiler), do you have any companies that you can recommend for this work and or HVAC?  Would also like to talk with you about your management service so please PM me. 

Hello Marc - I am in the same situation, how did it go for your? Did you find an investor friendly HVAC company?