All Forum Posts by: Erik Raz

@Ore Aina-Badejo

Betting on appreciation is a risky bet, look at your scenarios.

Scenario # 1 All Goes Well: If all goes well you get appreciation and maybe some cash flow or negative cash flow. How would you assess this outcome?  

Scenario # 2 Economy Goes South: Rents go down, appreciation goes down now you for sure have negative cash-flow and if you don't keep paying mortgage you lose house and your down payment. How would you say this outcome is? 

To me it seems like the first outcome is slightly positive at best and second outcome is very bad meaning even if you get the best outcome possible it will still be an OK outcome. I think it would be better to get a property that has a win-win situation where you make money in either scenario. Hope this helps.

@Curtis W.

Are you looking to flip or buy and hold? I invest in Central NJ, 1 hour 15 minutes away from NYC. It's not great for flipping but great buy and hold opportunities. Between 17 - 20 percent CAP rates and price range of properties are about $40K - $100K depending on location. Average rents are about $1,200, appreciation is about 2 to 3 percent a year on average although it picked up recently since many investors from NYC have been coming here. But people invest here primarily for cash-flow. You can message me about details if you're interested. As far as flipping you need to be in a higher end area if you want to make a good profit margin. Somewhere where houses cost > than $200K.

@Yi Zhao  In Brooklyn most places are already over 500K in queens there is still some deals left but very rare. These deals usually get picked up by people who have already have established relationships with wholesalers and guys with "bigger pockets" literally. That doesn't mean you can't get a good deal, it just means it will very hard you are competing literally against hundreds of people on each property. I don't think it's a good time to either hold or flip in NYC unless you find a really solid deal. That being said. You can buy 7 to 8 nice properties out of state for $500K that are fully repaired and bring in 7K profit every month. I would invest out of state or somewhere where your money will bring you higher return. Best,

@Robert Wyatt Jr just sent you a message.

Just sent you a message @Jason Y.

Newly renovated property in downtown Trenton NJ area few blocks away from government buildings. Great opportunity for investors. Renovations were done 5 months ago. The property has new floors, windows, doors, water tank, furnace, appliances, new kitchen, bathroom and so on... The property is occupied with tenant paying $1,400 rent. What I like about this property is the high rent and such a low price making it a great investment for someone not wanting to pay crazy NY and NJ prices for a house. Management for this property is taken care of if the buyer wants to have management if not buyer can save $1,600 extra every year.

Financials and Pictures below.

Price: $70,000

Annual Rent: $1,400 x 12 = $16,800

Annual Expenses: $2,842 (taxes) + $600 (insurance) + $1680 (management fee) = $5,122

Annual Income: $16,800 - $5,122 = $11,678/year or $973/month

This property is located in Trenton NJ was bought as a package deal and owner wasn't able to fix it due his work in NYC. Now the owner needs intimidate cash, that's why property priced so low. This property needs lots of work, partial plumbing work, electric work, sheet rock, kitchen, bathroom and carpet. Total repairs needed $12k - $15k. Once property rehabbed will rent out for about $1,000 (rent in the area). All in price should be $30K. This property is great for people who want to plunge in and learn everything about rehabbing and have the least amount of risk since it's only $15K property there is not much to lose. 

Here are what financials look like:

Price: $15,000

Rehabs + Permits + CO: $15,000

All In Price: $30,000

Rent: $1,000

Annual Rental Income: $12,000 (rent) - $2,042 (taxes) - $600 (insurance) - $960 (management 8%) - $1,000 (vacancy 10%) - $500 (maintenance) - $500 (cap ex) = $6,398

Total Income: $6,398

CAP: 21.3%

In less than 5 years you can get back 100% of what you invested. Just for comparison in NYC to get back 100% of investment would take 25 - 35 years for many properties. Of course NYC has appreciation to it but appreciation is never guaranteed. 

If you have any questions feel free to call me at 347-470-6184 or email me at [email protected] .

Below are pictures and link to video of walk through of the house.

Walk through of the house video: https://drive.google.com/file/d/0B5TOXFcxtss0UTM4U...

If you plan on rehabbing you should get a property for .65 - .70 cents on a dollar of the expected price that you plan to sell it for minus all rehab costs. That means your profit should be 30 - 35 percent of the expected sale price minus commissions. This is an ideal situation which in NYC is not easy to come by. In NYC area I would go even for .80 cents on a dollar if the spread is good enough. For wholesale deals follow the same formula minus your commission/assignment fee. 

Hey Robert I am an investor from NJ and maybe we can do something with this deal  and split the profit depending on where it is in NJ. Maybe I will buy it from you myself. If you're interested you can message me. 

I am doing so in NJ many areas in NJ. The prices look something like this. An average single family house goes for $65K brings in rent of about $1,200, taxes $2,000, insurance another $600. Your left with $11,800 of which you can set aside for vacancy plus maintenance and cap-ex. If you're interested in in details you can message me.