All Forum Posts by: Chris Daliani

Hello,

I am looking for anyone who is or knows of anyone looking to sell their multi-family home in Jersey City, Bayonne, or anywhere in Hudson county New Jersey. 

Thank You!

@Micah Copeland

 Thanks, We did not go with this deal. I am glad I at least got some experience with analyzing the property.

@Gilbert DominguezThanks! 

 Will, No he will be owner occupying but also doubling as the renter. He will not be getting any profit until he has paid me back 1/2 of my initial investment

@Micah Copeland

 and you are saying a good gross rent multiplier is at least 1.5%? For this property I would do  175000 purchase price / 32,400 gross income= 5.40...make sense?

@Micah Copeland

 So you are saying that it is still a buy at 180k for me as the buyer? Not following...sorry

Hello, 

I am currently in the beginning stages of analyzing a potential condo deal.

My future brother in law will be moving to Jersey City in New Jersey. He was in the market for a rental, however I came up with an idea. Since he does not have any funds for down payment to own I was thinking of purchasing a condo with him as a partner/investment.  I would be providing down payment and all up front costs. He would owner occupy for the amount of time required by the lender and essentially rent it back to us. We would then split all profits 50/50 once he moved out and/or sold

The current thinking is offer price of 125k and I am still waiting for expense reports. Taxes are $1,814 and fees are currently $144. Tenants currently pay for utilities. The market rent for the unit is roughly $1,300 as of now. With a little sprucing up and the current market in this area skyrocketing...we might be able to squeeze some more in the future

We would like to purchase this together. I am not sure how to go about this the cheapest way....We would really like to create and put this under an LLC. Would that work? Would it be better to put it in both our names? or separate? I know there are different tax implications as well when we do it certain ways.

Any and all feedback would be great. Thanks

Hello,

I have a wholesale deal I have been analyzing. This is my first investment property to analyze ever and I would like to know thoughts of the BP community. The property is in need of rehab. The rents are estimated to the best of my ability based on comps and geographics. I may be able to get slightly more once renovated but I would rather stay conservative on this. If we were to flip it I may be able to get 290-310k for the flip. I am not sure how to analyze proper pricing based on the NOI.

Below is my analysis for the property. Please let me know how I did and what I may be missing.

Property Description:

2 Family

3 bedrooms

2 baths

1 Furnace

1 water heater

Lot size: 50x122

Built: 1890

Sq Ft: 1688

Purchase Information:

Asking: $175k

Repairs: $90k

Closing Costs: ????

Total: $265k (without closing costs)

Financing:

Cash offer

Income:

Unit 1: $1,100 (potential)

Unit 2: $1,600 (potential)

Total potential: $2,700

Gross Income: $32,400

Expenses:

Vacancy: 10% $3,240

Utilities: ?????

(Water/Sewer,Trash, Gas)

Taxes: $9,300

Insurance: $1,200 (estimated)

Mntnc/Landscaping/CapEx: $3000

Yearly: $16,540 (without utilities/closing costs)

NOI = Income – Expenses = $15,860

Cash Flow = NOI – Debt Services (loan) (cash offer)

ROI = Cash Flow / Investment Basis

COC = Cash Flow / Investment Basis ($15,860/ $265,000)= 5.98%

5.98% without utilities and closing costs...this would only go down further with those added expenses.

Being that the house is not properly insulated heating will be through the roof. We would have to look to separate the utilities. I have not been given any utility expenses on the property.

Please give me your opinion on this, or perhaps an offer amount that may work.

Thanks

@Steve Babiak They are paying rent however not at market value. I am not sure of the relationship there. They are trying to actually relocate the elderly aunt prior to selling so there are no issues with that.

@Nick Harrington Thanks Nick. It seems to be a definite option to partner with him. Unless there is a way for me to use his money for a down payment and pay him a % for the loan amount. 

 Thanks for the reply...when you say equations...what are they? 

"Now that doesn't necessarily come early the in ownership cycle." I am assuming you mean more will be going towards principal faster...with more money down.