All Forum Posts by: Bronson Simmons

 Thanks Umer, I wondered if I was looking in a bad neighborhood after the analysis. I need to look into that more!

I might relocate to New Jersey, so I would appreciate your help if you know the NJ/NY market:

 65 N 1st St, Paterson, NJ 07522 - Duplex - 3BR, 1Ba (each) - ask price 325k

rentometers' ave. rent is 1832/side= $3664

For a FHA loan with 4% down the payment is $2369 (includes insurance, mortgage insurance, and prop. tax) 

after setting aside 20% for repairs & Cap ex ($732), flood insurance ($80) and assuming self management, that leaves 299/mo. cash flow. Metrics: 18.4% COC return, 7.9% Cap.

Have I forgotten anything? I've heard the NY/NJ market is hard, so this seems too good to be true!

I'm just getting going, but things that keep me taking smaller steps are 1) BP podcast 2) friends who are in real estate and 3) goals, and 4) the impending sense of our life savings shrinking into nothing because of inflation. 2022 is my year to take action!

I have noticed a few MFU here in Louisville that check some criteria, but are quite old. Some were built in 1900-1920s. I know maintenance is worse in old buildings, but how old is TOO old? What age or year built is too old for you and why? I'm afraid of drawing the short straw of being stuck with a crumbling building that needs rebuilt to the foundation and not having the money to do so. Is that even a realistic concern?

Sounds like a good plan- but what should I look for in an agent making an offer that would signal “hey, they know what they are doing!” I know I should use a pro, but I’m trying to understand the outline of a good offer ahead of time. 

I understand I need to include a $$ amount, but what kind of contingencies do people include to protect the buyer if it is accepted? I read in Brandon Turner's Multifamily book that you should use an estoppel. What contingencies have you used to cover yourself in the event your offer was accepted, but then you discovered something undisclosed that would minimize or evaporate cash flow?

Here's some tips from this BP video and some from Holten Wise's video. It seems like you need to consider the demographic and neighborhood rating for some of these (ex:no dishwasher!?)

1. Don't use cheap faucets or door handles
2. Semi-gloss or satin paints
3. Avoid wood products on exterior (paver stones, trex decks), but if you don't, then use 
4. Grout and tile is caulked/sealed
5. 1 piece tub surrounds reduce maintenance
6. counter surfaces are solid and unbroken 
7. anti-freeze spigots
8. low maintenance landscaping
9. Install low flow water fixtures (toilets, faucets, cap off external 
10. stain wooden floors dark instead of covering with carpet
11. sound-proof between units in MFUs in decrease turnover (possibly with dark carpets)
12. quality deadbolt with key, quality handle without (prevents lockouts and makes lock changes easy)
13. remove everything that can be clogged, hung on, broken, or injure a tenant (window blinds, ceiling fans, light fixtures with key chains, wall sconces, towel racks, glass doors, dishwashers, garbage disposals, gas stoves)

Great ideas! I miss Southern California landscaping because it’s mostly easily managed rocks and sand.

When you buy paint, there is a code used and printed on the can that will tell a paint store the exact color, quality, gloss, etc. if tenants know the code, they can know how to buy the exact touch up paint.