All Forum Posts by: Ian Walsh

Spend your time learning your market and learning to market.  If you spend your first year or two doing that, you will know when you have a really good deal in front of you as well as how to make the deals come to you.

Rent exchanged for work is usually a slippery slope in the future.  

It can matter for sure.  Out of state and institutionally funded can be tough to close at times.  Privately funded and local tend to be easier .

I built a large property management company about 10 years ago.  The investors that tended to do well had a lot of equity and a lot of cashflow.  The one's that struggled or collapsed tended to run very tight on cash flow.  Unless your pockets are very very deep, negative cashflow isn't really a great idea.

There are deals in every market.  

I am sure that stat can be looked up.  For the most part NJ is separated into 3 markets.  North (New York), Central (mixed) and South (Philadelphia).  They each have their own distinct feel.

Not investment advice .  See below for general rule of thumb.

1. How Much Cash Do I Have to Spend?

Assess your liquid savings (cash, short-term investments) and allocate a safe portion for your real estate investment. A good rule of thumb is to use 20-30% of your savings, ensuring you keep enough for emergencies. This cash will go toward the down payment, closing costs, and initial property expenses. 

2. How Much Loan Can I Get Approved For?

Lenders will look at factors like:

• Debt-to-Income Ratio (DTI): Your mortgage payment might be around 30% of your gross monthly income. If your monthly income is $8,000, you could get approved for a mortgage payment of around $2,000–$2,500.
• Credit Score: For investment properties, a score above 700 is ideal.
• Down Payment: Investment properties generally require a 20-25% down payment, so for a $300,000 property, expect to need $60,000–$75,000 in cash.

Learn your market, know when you see really see a great deal and learn to market.

Finding a small cash partner can work if you don't have funds available.

Learn your market and learn to market.  Becoming a wholesaler or investor friendly agent will give you skills in real estate investing that nothing else can.  They are also low barrier to entry and low risk.