All Forum Posts by: Jason Sterling

All,

Looking at my first deal, an investment that I would look to rent out.

Potential cash purchase, and it is an enticing deal that I could get relatively good value on, but the issue is such - there is pending litigation against the HOA for mold ( not my unit, or even my condo section). However, even if I wanted to go through traditional financing, i could not because of this issue, which is probably why there is good value.

As I am new to the investment world, and this situation seems a little hairy, has anyone run across similar circumstances? I dont know what my potential liability is if there is a large settlement ( does HOA have insurance themselves to cover most of it), what would happen if it bankrupted HOA? Does community go to sh*t?

Would love any insight, and thank you!

Jason

thank you so much for your help @Charlie DiLisio and @ed mats

@Charlie DiLisio what was the wiring called exactly ? Building is frlm 1923

thanks @Stanley Parsley - any recommendation on how to reach an appropriate ARV? I have comps but having trouble making sense of it as the properties are so uniquely different as multi families.. Thank you!

Posted this in another forum but maybe this is the right forum? If not apologies! 

All,

with a quick background, I am new to REI. I promised myself that I would purchase my first investment property in 2017, and have really started to sharpen the axe if you will. With that being said, I really wanted an affordable entry real estate, and was looking at possible rentals in the areas near me that offered a decent price, with a keen eye towards a multi family unit.

With that being said, a foreclosure popped up (multi family) and is set to go to auction in a few days. I went yesterday to see the property, and brought my uncle who was very handy to see if he noticed things I did not. Essentially I believe this property could be had for cheap, and I firmly believe there is usually more value in something ugly, as most are turned off to the opportunity bc it could be too much work. I have looked at comps in the area.. and rents as well in the likely event I want to rent this out. The rents seem attractive but I can't get a firm handle on the value - #1 it needs work, and #2 the comps are other multi families that have different qualities.

Does anyone have any recommendations on how to proceed? Work needs to be done, for example the kitchens are small, but I am not sure how to gauge the cost in replacement. Realtor informed me we can make an offer to the bank prior to auction, which if bank accepts can remove from the auction and secure you the property. But I am not sure how to affirm I am valuing the property correctly, and the replacement cost of some things that need to be fixed, repaired, or just spruced up. I want to learn, and going right into it is the best way. I feel overwhelmed, but also excited at this opportunity. Maybe overwhelmed is a bad thing, but I don't want to pass up an opportunity that could make a heck of a lot of financial success. Any thoughts or insights would be greatly appreciated.. also to add, I have the access to liquidity for the purchase and repairs.

Happy to post #s of the potential property, but again just not quite sure where to start ! 

Thanks in advance,

Jason 

All,

with a quick background, I am new to REI. I promised myself that I would purchase my first investment property in 2017, and have really started to sharpen the axe if you will. With that being said, I really wanted an affordable entry real estate, and was looking at possible rentals in the areas near me that offered a decent price, with a keen eye towards a multi family unit.

With that being said, a foreclosure popped up (multi family) and is set to go to auction in a few days.  I went yesterday to see the property, and brought my uncle who was very handy to see if he noticed things I did not.  Essentially I believe this property could be had for cheap, and I firmly believe there is usually more value in something ugly, as most are turned off to the opportunity bc it could be too much work.   I have looked at comps in the area.. and rents as well in the likely event I want to rent this out.  The rents seem attractive but I can't get a firm handle on the value - #1 it needs work, and #2 the comps are other multi families that have different qualities.  

Does anyone have any recommendations on how to proceed? Work needs to be done, for example the kitchens are small, but I am not sure how to gauge the cost in replacement.  Realtor informed me we can make an offer to the bank prior to auction, which if bank accepts can remove from the auction and secure you the property. But I am not sure how to affirm I am valuing the property correctly, and the replacement cost of some things that need to be fixed, repaired, or just spruced up.  I want to learn, and going right into it is the best way.  I feel overwhelmed, but also excited at this opportunity.   Maybe overwhelmed is a bad thing, but I don't want to pass up an opportunity that could make a heck of a lot of financial success. Any thoughts or insights would be greatly appreciated..  also to add, I have the access to liquidity for the purchase and repairs.

Thanks in advance,

Jason 

@Mike Huang What type REI do you do? can you give me more background, considering your in the same region as me?

and thanks all for terrific responses, really great site and forum to be a part of ! 

@Account Closed

Thank so much for the response! I think I would like to at some point situate myself as someone who can work with flipping properties, etc.  

For now, I am looking at owning and being a landlord.  Willing to consider a turnkey, or even a property that needs some work before renting out.  

From my newly found knowledge, it appears that it is a more lucrative venture to take on multi family properties.  My optimal goal would be to invest in one, after time take profits or equity and roll into another, and so forth.

If MLS are overpriced, what other avenues do you go down? And what are your experiences with multi families.. are those your best bet in a perfect situation?

Thanks!  

Good morning,

I have long been interested in investing within real estate in any capacity.  After working full time for 10 years (32 years old), I have created enough liquidity that I feel comfortable starting, but not sure where or how.  I discovered this site recently and it has been a great opportunity for information discovery and education, and for that I thank all of you.

Living in NJ, I am not sure how to find good deals (looking to start as a buy, rent and hold with reasonable cash flow).  This area seems expensive and over saturated with investors, but I could be wrong.  I would love insight from anyone with experience investing in this area, and also any insights on how to get started if you were in my shoes? I apologize in advance for the ambiguity, but alas, you don't know, what you don't know, until you know it. 

My goal in REI is like many im sure, to create financial independence.

Thank you for your help.