All Forum Posts by: Bob Roach

• Cash flow is more important than appreciation
• Should be in an area where rental demand is high
• Should be in an area where it is relatively easy to sell. 
• Availability of management companies since I do not plan to manage the property myself
• Not interested in flipping 
• Property needs to be within approximately 3-4 hrs driving distance from central NJ.

So far I have considered the areas close to the university in Philadelphia. Jersey city (NJ), Union City (NJ). 

Before I decide to focus on an area I wanted to know which other areas would the experienced investors here recommend based on my criteria. Also, which state is most land lord friendly amongst these NJ,NY,PA,CT,MD,DE?

@Michael G your assessment is accurate. 

You stated :

"You could buy a 4-5 unit multi unit property in certian parts of NJ that would cash flow significantly better than a $200k studio IMHO. "

Which areas in Jersey did you have in mind?

Why is this such a good idea when you could invest in a mutual fund and get typical 8% return on your money (35000*.08 = $2800).  Much less effort overall as well. I am sure I am missing something. Can someone elaborate?

e.g For purchase price of $100k target rental income should be $1000 per month OR 1% of purchase price. Looking for the typical percentage. Thanks!

Assume good credit and ability to get a conventional loan. 

Assume FHA loan is not an option.

I see adds like "We buy homes in cash. Call Today". Wondering what their business model is. What percent below fair market value do these investors typically pay for a home in good condition (no repairs needed).

Bob - thanks for your response. Any recommendations on best locations in NJ to purchase an investment property for around $200k? It should be easy to rent out. 

Wondering if purchasing a studio for around $200k and then renting it out in West New York would be a good idea.  The goal is to purchasing something with around $200k in NJ and then renting out. 

West New York seems to have several apartments in this price range. My guess would be that it would be fairly easy to rent out in this area due to proximity to NYC. Feel free to suggest other areas that might fulfill the same goal.

Hoboken would  be even better but the prices there appear to be above my budget.

Looking to get ideas on ways to partner with an investor. I am new to property investing.  I am sure there are many ways to structure a deal. I have good credit and some cash to invest. One thing I don't want to do is manage the property. The goal is to generate passive income and benefit from appreciation.

One thing I struggle to understand is who gets to decide when to sell the property that was jointly purchased with another investor? What are some of the typical ways investors structure these deals / investments?

I realize that deals could be structured in almost infinite number of ways. That said there a re probably some popular / commonly used methods to partner with an investor. Thats what I am looking to find out. Also, would like to know how to tackle the question of who decides when to sell the property (how is this typically handled). The investor may want to sell and I may not. The reverse is true as well.

Looking to get my feet wet by investing around $100k. Which markets would you recommend? NJ,PA,NYC & Florida seem most appropriate for me since I live in the east cost. That said I am willing to explore other options. Of the states I mentioned which state & city would be most appropriate? Florida?