All Forum Posts by: Eric D.

What do people think about buying foreclosures at auction? Or trying to get tax lien properties? I have two multi-families that I bought off the MLS in 2017 and 2018, and so it worked out due to price appreciation. But I find it very hard to find properties that produce a good return on investment these days. It seems much easier to just put money in the stock market.

You should sell the property. Look, the value of the property is $520k and you owe $100k, so you could clear $420k (minus real estate transaction fees). For our purposes, let's say that is $380k. If you were to invest in stocks with 5% dividend rates, you would clear almost $20k per year. Right now, your monthly income is $1150 per month or $13,800 per year. And stocks go up faster than real estate, historically. 

Quite simply, too, condos are not good investments. You would be better off buying a multi-family. Also, you are in California and you just cannot make the same return there on real estate rentals as you can in, say, the Heartland. 

Personally, I would sell the condo and use the money you get as an investment. I would not want to do a cash out refi on the condo simply because I do not think it is a worthwhile underlying investment. Maybe it is just me, but I would not want to do a cash-out refi on an existing property unless, in theory, that property could support the re-fi. Which yours cannot. Otherwise, to me, it is not a good investment and I am not making a sound financial move. But maybe that is just me. 

Does anyone have any thoughts on selling a multi-family rental home in a 1031 exchange to buy a Delaware Statutory Trust? What are the pros and cons? 

I own two multi-families free-and-clear in a hot area of New Jersey. I am thinking of selling one in order to have less headaches and take the money to buy high dividend stocks. Thoughts? 

Each multi-family clears A net profit of $30k.

I figure I can get $625k to $650k for the house.

After realtor fees, taxes, etc. think it’s worth it to sell and plunk the money down on some high dividend stocks (ie Exxon 5.7% and REITS)? Or should I stay put? 

I own two multi-families (Maplewood and West Orange) free and clear that I rent out. I feel like I need a strategy if I am to continue with real estate investing. 

I look at the MLS and everything seems overpriced and not worth it. My knowledge is kind of limited - I bought these two homes off the MLS through real estate agents. What would you do in my situation?

It doesn't seem worth it to buy a third off the MLS for a high price and with a mortgage and not clear that much money. I also do not want to invest far from this area.

Any suggestions?

Consider Union and West Orange. 

I would house hack. I do not think BRRR is possible in NJ, except perhaps in South Jersey. Maybe you could do it in Pa. This is due to the prices and taxes. I would be wary, at least as a newbie, about buying a rental property far from where you live. My properties are within 10 minutes of my house and I think it would be real tough if I could not get to them when emergencies occur or repairs are needed.

I would love to hear ideas from others, though, about how you can take seed money such as you have and make a career in NJ real estate. 

To be clear, I am not zeroing in on 100 units. I simply mean the BRRR technique does not work here

I mean, People on BP share their success stories of using like 100k and then in a few years being able to retire.

It seems nothing even close to that can be accomplished in NJ, right?

I own two multi-families - one in Maplewood and the other in W Orange - each purchased with conventional loans with 20% down. On BP, I hear stories about people who do the BRRRR method and end up with 100 units after 5 years and can retire.

However, in Jersey, I just don’t see how anything even approaching that can be accomplished. Thoughts?