All Forum Posts by: Helen Kolton

Hi Michael, (not sure how to insert your log in name) sorry

Right,

Since its a REO we are planning to make any necessary repairs when we close so we can rent ASAP, but I will still save for future unexpected repairs. We will manage this property ourselves. Other than that I will be paying water. I have around 11K for expenses (taxes, home ins., vacancy, water, capex).

I am coming up with around 10 cap rate.

2 bedroom rents for 1,300

1 bedroom rents for 1,000

totally agree with you, I am disgusted with them.  we had a pretty bad year dealing with real estate agents.  We've been fired at least 4 times and I had fired at least 5 agents. 

2 Family Property in NJ

Unit 1 has 2 beds

Unit 2 has 1 bed

C+ area - good rental area

I am not an engineer but the house is in pretty good condition, cosmetic clean up of about 15-20K

Asking: 140K

Offer: 125K

Conventional Mortgage with 25% down

Rents: $1,300 and 1,000, respectively

Taxes: 6,512

Ins. 1,000

Water: ?

Also, how do you calculate title costs? Is it about 3% of purchase price?

Thank you to everyone in advance.

We are real estate investors in New Jersey.  Started as wholesellers but changed our strategy to buy and hold.  We both have full time jobs so doing real estate full time and flipping is out of question for now because it requires undivided attention and that we can not commit att his time.  So we are concentrating on investing in multi properties now.  We purchase an estate home last year in November with the intention of flipping it.  Our accountant recommended to keep it for 2 years so we are living at the hosue now.  We finished all the reno last May (it was a nightmare) but we are still committed and want to keep learning and now slowing looking for our first multi property.  Learning everything we can about being a landlord.  Love this site and information and help it provides.  We are looking for deals in South Amboy & Perth Amboy.  

Thank you Steven.

I am in the process of looking for my first multi.  They asking $260K. Before I left they asked me what do I think about the price. I said that looking at the rents it seems its a bit overpriced. I am looking more at $230K. They said that its too low. I left and submitted my offer anyway. My agent just called me to tell me that they countered with $250. They said that they have a bigger offer on the table.  Please advice.

Price $250,000

2 Family

Rents: $1,200 per unit

2 – 2 beds units

Brick

Age of roof unknown

Taxes: 5,300

Age of the property: 72

Garage and Driveway

Nothing to do but to move in (unless you want to update the kitchen)

Very well taken care of

Used to be oil tank but now removed and converted to Gas

1 meter for both units – water and gas (the seller splits the bill between two tenants)

1 unit if rented at $1,200

1 unit is vacant

The roof is still good but in the next 5 years might need some work.

Thank you

Michael,
This is a single family home. I only saw it last night, so I do not have all the answers yet. I am still doing my due diligence. I did call several people and waiting to hear from them. The house has 3 bedrooms and 2 bathroom. I am not sure if it is zoned for 2 family. the previous owners just finished the basement with bar, bathroom, office and play room but it's been neglected for years, because they both were old and very sick. The grandson lived in the basement for a while. This house could be rented for around:
Median rent: $1895
Average rent: $1894
60% between: $1654 – $2135
80% between: $1528 – $2261
The house next door is very comparable, the same in all respects but well taken care of. The house is in Sayreville, NJ.

I will provide more info once I know more....
Thank you everyone for your advice.

We are looking for our investment property. Our first rental.  I have been reading a lot and listening to the ipods.  Love them.  Josh encourge to ask questions no matter how crazy they are.  So please help.  Sorry its a bit long.

We went to see a house last night in New Jersey, Middlesex area.

At first when we walked around the house it seemed great, brick, roof is in good condition, central air, garage, beautiful nice size yard. As I was walking around the house I noticed cracks between the brick and the foundation in the ground. Gaps almost around the entire house. Then I noticed the gutters improperly routed directly into the ground above the basement, clearly the water is draining directly into the basement.

When we went down to the basement the smell of rut and wetness was overwhelming. The bottom of the basement door is all ruted, the walls and especially all corners are wet. There seemed to be a kitchen and the bathroom there as well. Lots of water and water stains on the floor by the hot water heater, and what used to be the kitchen. A little mold in some places of the basement as well. I think the entire basement needs rehabbing. It could be made into a small apartment with kitchen, bathroom, and living room.

The neighbor said that the houses on that street were build on the springs. The entire street has no drainage, so even the snow water has no where to go when it melts. I do not know how much this may cost. It seems to me that it is a huge expense.

Besides all this the house needs total updating, kitchen cabinets, counter tops, tile in the kitchen, appliances; both bathrooms, removing old wet carpets and varnish all floors; and paint the entire house.

Pros - house is in a nice residential area with good possible rents.  Might be good appreciation potential too.  

The house next door just got sold for 265 (asking 279K) same issues with drainage but the owners were very diligent in combating the problem and installing french drains around the entire house. The same neighbor told us that we will have to do the same. How much are we looking at, if we decide to install french drains around the house.

In any case they are asking 225, I am thinking of offering 125K. I would appreciate your input on reno and any general thoughts and advice on water problems.

Thank you all.

wow, looks awesome

Where do you find $25,000 per door now days? Just curious