All Forum Posts by: Eric Burgh

You're going to have to address a few variables, but here are some for starters:

What is the extent of demo and why? - Go down tot he bones or less extreme.  Rip out the walls and floors, uneven walls and floors, remove and update all electric, remove and replace all plumbing, replace furnace and radiators, install HVAC, update windows, refinish outside and with what?

Is this a rental or flip - what type of finishes do you need.

How many floors and is it all walk ups.

What's your time frame.

@Shane Rasnak   I'm not actively investing right now, rather managing and fixing other people's properties.  I need to do more reading and research before I really begin to invest, and my wife and I want to buy soon so we'll likely get our together home first.

I do have a place done and paid off in Union City, and had I bought a few more places here from 8 years ago, I'd be in a good spot.  It's hard to see how much prices have gone up and want to buy at these market prices.  If I found a fixer upper around here I'd reconsider, or I'm considering one of the seedier areas west of here for low market entry and cash flow, and work with someone as a team, and if it meshes well branch out from there.

Thanks everyone for the input.

We're certainly going to forego lending to them, and I told them already that the money in tied up in stocks and making more than 4%, they understand.  I think at first I was just shocked by the immediate and fierce"no" I received from the wife and took it as she had something against my parents.  My initial post was more of a general question if this is considered an off limits move, but it seems like it's really more specific on the details.

I certainly assume and hope the money in the stock market is making way more than 4% on average. As for my parents, yes they can take out a HELOC which is the plan and the reason they offered us ~4% return, but they made the offer with the assumption that our house money was not tied up in the stock market, and was sitting safely in the bank.

Had the stock market been volatile and we cashed out of the stock market and had the cash in the bank, I'd say the 4% isn't a bad offer.

I live in the JC area. it's sky rocketed in price but has a good future. just do research as there are also bad areas and people (realtors) are really using the jersey city name to try to sell anything , regardless of location. check out neighboring towns as well, feel free to message me if there are questions

@Brie Schmidt

The money we do have is going to be towards our own house, but I don't see that happen until at least Fall 2018 (I'm not planning on looking or buying in Spring/Summer when the market is typically high).  We have no pressing issues to move (current place is convenient and spacious - but not suburbs which she wants).  Sure a deal may come along between now and then, but north NJ real estate prices are generally shockingly high so I don't see us finding something during spring/summer.

In terms of payback, I think they could either do monthly payments or lump sum.  The borrowed money is really just temporary until their primary residence sells, which given the time of year should be able to go on the market for Spring.  Primary is in good shape with the exception of the dated but clean bathroom, which is why we would fix it up and at that point it's completely move-in ready.

I would certainly hope she is getting more than 4% in the stock market, in which case I wouldn't argue to take it out unless we want stability and to lock in the money so it doesn't potentially go down within the next year.

So I'm in a jam with my wife and I on opposite ends - my parents are buying a new place and need to borrow money ($120k).  Good relationship with us, they have excellent credit, financially responsible, 3 houses paid off - 2 of which are rental properties with steady tenants and 1 primary residence which I would update their bathroom and would go on the market in spring and likely sell for $400k.  They are amateur investors so asked my wife and I if we would lend them as much as we could and they would give us ~4% interest, rather than give it to the bank (sounds good/generous to me to keep the money in the family).

I have some available cash which I'm letting them borrow, but the majority would be my wife's money which she is saving for our house which we buy together in a year.  Right now her money is sitting in the stock market and I have no idea what return she is getting.

Wife's answer was an immediate no, based on principle and not numbers (her return % on stock investment).  I feel a bit insulted and sure my parents will as well, but wondering is this something to try to talk her into or is it too close to home and leave it be.

How are you with Photoshop, or have any friends with photoshop?  If its easy enough and the pictures look good, why not chop in what the floors will look like.  I'd let people know it's a rendering and what the "new" flooring will look like.

You might luck out and find someone looking in advance and needs that move in date.  Just make sure if you make promises that there will be no hiccups in the repairs.

interesting that curb appeal is so high on the list. personally I'd want the interior to be in good shape first. the outside I could tailor to my own taste and colors

only way I could see putting money in Passaic or even Paterson is if it has good cash flow. I can't see the area gentrifying, unless you want to take a 30 year gamble on it. so don't bank on appreciation due to gentrification. seems like too much headache and risk

like others said, hard to tell from this side of the screen, it doesn't look to major but certainly not minor. plumbing systems don't look too old. roof looks spotty. some hardwood floor you can refinish. one needs a new kitchen while others look okay for a rental. then again you know what the people in this market want, and what their budget is and if it makes sense to really upgrade.