All Forum Posts by: Frank C.

Hey everyone,

I am a investor with experience in SC, NC, & TN. I have a fair deal of experience with the real estate laws/codes in those states, but I have a colleague ask for advice today and I am hoping that you can help. Bottom line, he is selling a once primary residency home in NJ, but is not a resident of NJ due to active duty military commitment/mandatory moves. He will not have to pay federal capital gains tax because of the "Military Family Tax Relief Act" because 10 yrs period has not expired. His "gain" on the sale is zero, but I have no advice when it comes to NJ sales/income tax. Can someone help?

"Any advice you can offer about how to alleviate a New Jersey non-resident income tax payment would be appreciated.

I am active duty military stationed in North Carolina. In 2006, my wife and I purchased a home in Pemberton, NJ while on active duty in McGuire AFB, NJ. In 2011, I received orders to move to Washington, D.C., followed by another move to North Carolina in 2015. From May 2011 to May 2017, the home was always rented and we never used it as a principle residence. We did not own homes in DC or NC.

We sold and closed on the home last week. Our original purchase price in 2006 was $275k, but we sold in 2017 for $248k. NJ tagged an additional 2% non-resident income tax on the sale price $248k; almost
$5k tax. I am an Ohio resident and pay state income tax there. My wife is a Florida resident for tax purposes, but FL does not have a state tax. We have never been an NJ resident and never paid NJ taxes
even when stationed there 2006-2011.

Is there anyway to get a refund on the NJ $5k tax? Additionally, any recommendations for a good CPA in NJ with experience handling out-of-state military tax issues?"

I really appreciate your time to help with this question.

Looking for recommendations of a good PM in Fayetteville, NC. Does anyone know what the going rate is for single family and multi-duplex? Thanks in advance for your help.

Thank you for your response Jon. This particular property is in the south east so no snow, and sewer/trash is included in taxes. The duplex is individually metered for electric and water. I figured the quarterly pest control and landscaping in the $500 miscellaneous, there is little landscaping required and fairly cheap in this area. I'm just not sure if 10% cash on cash is a descent return or not on a turn key. I ran the numbers at zero down just out of interest and it just does cash flow. I am trying to avoid  analysis paralysis, but this is my first multifamily and I'm trying to develop my system for reongnizing a good deal. I will probably submit an offer and do my due diligence. Gotta jump in the water at some point. I appreciate your time.

Hello everyone, I appreciate you reading this post and hopefully you can lend some advice for a hungry investor. I am looking at a duplex that is 11 yrs old in a C+ to B- neighborhood. The builder/landlord designed the duplex to be low maintenance and has already replaced a few of the appliances in the last two yrs. Below are the numbers:

Purchase price: $93000

Rental price being conservative: $600/mnth/unit or $1200/mnth total and the property has good rental history and a little better than 8% vacancy. Currently rents $600 one side and $675 section 8 with long term tenet on the other.

Cost after closing (inspections/closing cost/ 20% @4.5%): $22900

EXPENSES/yr: Property tax: $1800; Insurance: $900; Property Mngt @ 10%: $1325; MX & repair(7%): $1008; Cap Ex(7%): $1008; Misc: $500; Vacancy(8%): $1152.

Debt Services/yr: $4524

If my numbers a good and conservative, I am looking at operating expense ratio of 50%, Cash Flow of $182/mnth, & Cash on Cash ROI of 9.53%.

I think my analysis and assumptions at correct for a property that has been taken care of and built with maintenance in mind. The property is 11yrs old so the roof is still good and I probably have a good 4-7yrs left on the HVAC. The seller is firm on his price, but I need a higher cash ROI. If I can get the seller to cover all closing costs, then that would get me to around 11.3%. This is a turnkey rental and am looking at my first investor deal. I would greatly appreciate any advice someone has. Thank you for reading.

Hello, my name is Frank and I am new to the Fayetteville area. I currently have one single family property in South Carolina and two vacation properties in Tennessee. Have been in the Air Force for almost seven years and currently deployed till the middle of April. Am excited to get back because I finally have the capital to continue investing in my portfolio. I am very interested in but and hold properties. Have done extensive research on multi family and that is where I want to invest next. I hope to meet a great network in Fayetteville because I think it has a lot to offer and I would love to connect with other investors.