All Forum Posts by: David Thomas

I recommend that you first decide what your comfort level and desire is on whether to stay SFR or go MF - weigh all the pros and cons, and go with your gut.

Then, know your numbers! If you really have an understanding of your own market and future trends, and have a good team - doesn't matter where that is geographically - and you really have the numbers crunched for worse case scenarios, you can be successful. I reccomend digging into to RE valuations and finance to set yourself up for success, no matter what the investment is. You might want to check out some good RE Finance books. Just my thoughts, as I learned the hard way on my first SF rental as well. And it was the annual operating costs that hurt me most.

You have to know where to look and be diligent and patient. @Chris Jones if you are going to owner occupy you can go with 5% down conventional on a 2-family for sure. I'm doing it right now. I would look at increasing your budget to at least $300k if possible if you want areas that are in demand, but again, they will need work. Are you expecting a turnkey property?

The $200/sq ft sounds correct for rebuild but thats just to determine replacement cost. Your actual policy premium will have many other factors as you probably know - age of home, condition, owner vs non-owner occupant, security features, location, and on, and on! Increasing your deductible a bit will lower the cost as well, but the key is to shop around. Its worth the effort.

Hey @Chris Jones , welcome to Bigger Pockets!

You have plenty of towns in Central and Northern New Jersey that you can search for multifamily and start investing. Not sure of your budget but you'll likely need to find something needing sweat equity, and you will find value that way.

You should connect with a realtor that knows the commuter areas and who can help you find an investment.

Hey @Aleksey Vinogradov ,

Your policy is going to cost you between $1,000-1,200 per year. I personally got the lowest HOI rates from Geico and Travelers.

Call a local agency that shops around for you like Insurance Center of North Jersey. Call Geico directly.

"What Every Real Estate Investor Needs to Know About Cash Flow... And 36 Other Key Financial Measures" by Frank Gallinelli

Way to go @Andre Q. - congrats and nice job!

Welcome to BP @Mike Abel !

I think @Michael Wentzel is on the right track. Maybe this is an opportunity to wholesale to a builder that can split into lots & develop? How much property sq ft or acreage? Any idea of land costs?

Welcome to BP @Holly Lehman !

Thanks @Frank Gallinelli ! My initial thoughts went back to my RE Finance class at NYU on commercial deals, but you made me want to dig in deeper for all of my future residential rentals and most certainly before I buy my next one.

I think too many investors do a "back of the envelope" analyses and quick run of numbers on any one of the myriad of spreadsheets out there (and are they accurate??)

As a matter a fact I just bought "What Every Real Estate Investor Needs to Know About Cash Flow.." !!

@Michael W. thank you for posting the question!