All Forum Posts by: Drew Slew

I just bought my first house 2 months ago. 750sq ft 1bedroom (layout makes it 2bedroom) in Union City, NJ, 145k, put 30k down, 30yr mortgage for 3.5% rented room for $800/m, total cost PITI+maintenance is $1100. Its my primary residence, so now i almost live for free, equity being built.

I make 90k a year, and now have another 20k ready savings, and just got a new credit card, 15k, for 1 year no interest. 

How can I use this 15k and savings (lets say only 10k to leave some emergency) to buy another property? 

This time it would be an investment property, no lofty goals just something that I can rent, a 1 or 2 bedroom for monthly $150-300 profit. Cash on Cash 7-10% would be nice. 

I know there are lot of area, different locals, but in sum:

how to use my 15k credit card no interest for 12 month

somewhere closeby NYC in Jersey, as things here are super cheap and tenants are through the roof

ok question, to the next one. i used 30k to buy my first place approx, im again back to around 10-20k to invest. i just got a credit card for 15k and also see a site like lendingclub.com that could provide some loans.. 

if i wanted to quickly buy a second place, below or around 100k, to rent out for 100-200 profit in jersey city, union city etc. what should I do? 

mortgages are harder to come by for an investment property or no? my Debt to Income ratio wouldnt change as i now actually have less debt due to this home of mine rented partially (althought banks dont know that).

any answers appreciate @Jeffrey Stein

@Jeffrey Stein bought it. Place was 150k listed brick condo walk up bought it 145k. It's a 1bedroom but layout makes it a 2bedroom so already rented 1 room out since 1 month of living here. 

Total mortgage his tax etc monthly is $1100 w wifi and all, rented small room for $800. In Chelsea I used to pay $1900/m for a shoe box studio for 2years...

This post will hopefully both specific and general enough for others to get answers to a broad question that many have - how to have enough real estate rented for enough PASSIVE INCOME to be financially free? Specifically, how do I repeat what I have just bought 5-10x? 

Quick background: 

- im 28 yrs old, NYC work, make 90k 

-just bought my first place, had 30k saved and bought a 700sqft 1br condo (two rooms, so 2br basically layout wise) in Union City, NJ 20mins from Manhattan under asking for 145k. Put down 20%, 30 yr fixed mortgage around 3.5%. 

-Total PITI, tax, HOA fee, wifi, electricity etc ALL monthlies $1100/month. I live in main large room (living room) rented other bedroom in about 10 days after purchase and repainting for $800/month. Thus it costs me $300 a month to live and own a place.

Now, the idea would be to do this every year or so, and have 5+ similar places to RENT OUT. not really that interested in house price appreciation as this place is probably the most stable rental market ever in the US, since its NYC.. i had 50+ people call and try to rent my place since i put it on less than 1000. no work involved. 

Someone making 90k, how do i quickly get to a level where I can actually make money from rentals? 

Could I do better, instead of 1-2 bedroom condos maybe a foreclosure, single family houses, rent out the parking place etc? 

How does one take out that many mortgage, do I create a company etc?

GOAL would be $2000-5000 passive income WITHOUT any work every month. 

Thanks

It was sold for 170k in 2005... It is rented now for 1050, so im sure i will rent it 1200 w upgrades. Im thinking this area will come up due to proximity to NYC and its one of the only units w a city view at such price. 1 br but really a 2 bedroom 

Let me know what you think of this apartment to buy

12th street and central ave, brick large condo, 1br

145k total, below asking, 700sqft 1 bedroom, but layout makes it easily a two bedroom w living room acting as a room closable w door. Walk up, brick building, NYC views south and east facing. Rented out now for $1100. I'd rent probably the room out occasionally for 500-600/m. Large kitchen, little renovation needed in bathroom. Overall seems to be a good starter home and agent says it would be 20k profit right away as it is underpriced, 160k easy real market value.. Ideas? Mortgage and all Piti would total $1050/m quite nice, 30yrs fixed. Goal is to live in it for few years, rent a room out on the side and either rent the whole thing later or sell it.

Quick background: 

I am currently renting in Manhattan and have roommates, quite expensive and really wasting money on rent over $1000/m. Also moving to jersey my NYC income should increase 200-300/m I assume due to no more city tax. I work in Manhattan btw and make over 70k. Commute to work interestingly should be same or even less from union city as I work right in soho next to Christopher st stop, Hoboken path. 

I'm counting with:

Owning would make my credit better, forced saving account on mortgage

Living for around 600-700/m total if room is rented Airbnb or month to month

Better lifestyle than my current rent by far as I live in a room and 4 roommates in apt..

Worst case I rent the condo or sell it, refinance 

Hopefully buy similar 5-10units and rent all, one day all rental profit 5-10k/month