All Forum Posts by: James Nam

Hey everybody --

I am tentatively looking into buying a two family home. The area I think can qualify as a B+ neighborhood. There are plans to establish a medical school in the town.

My question is: would opening something like a new med school increase or decrease property tax? I know generally education increases taxes, but this would be a private school which would create a decent amount of jobs. Being from NJ, the property taxes are already inanely high. 

Has anybody had any experience with the above scenario?

Thanks!

Thanks everybody for your responses -- good to know I wasn't completely crazy.

@John D. Most likely I won't be getting that steep of a discount, but just because its a First Look offer I'm hoping that there will be some leeway to wiggle on up. I'm most likely going to submit an offer at 80% of listing price.

If it doesn't work out... one of the first things I heard that I took to heart in BP was "Don't fall in love with a deal" hahaha

Thanks again! 

Hello BP Community, 

Currently I am looking at property on Homepath via the First Look program that is listed for ~260k - I'm hoping that my offer for roughly ~210k will be good enough to be accepted. I'm going for the buy and hold strategy. I read and reread a lot of the analysis weblogs/forum posts and ran the calculators, but being as this is my first purchase I am not wholly confident if I'm running the numbers correctly. Please help!

That being said, here are the numbers:

 Purchase Price (Hopefully) - $210k-220k
Downpayment: 15%
Financing: FHA 203K (Conservatively $60k in reno) - 30 Years
Interest: 4.25%
Property Taxes: $10,290
Units: 3
Average Rent Per Unit: $1200-1300 (I'm willing to bite the bullet for the first year and dip into my pocket and rent out the third unit afterwards) 

The other question I had was that if (big if)  I'm running the numbers even SEMI-correctly, it looks like the numbers are well worth it. In case my offer gets rejected, whats the highest I should offer for the property so that it's still "worth" it? 

Thank you!!

Where are the past webinars that were able to be recorded posted? I'm looking at resources but can't seem to find any of them (if they were indeed recorded and posted there, of course). 

@William G.

 Thanks for that resource -- I will definitely be checking it out. 

@William G.

I've been trying to analyze... but lo and behold RE costs in NJ are ridiculous, and in my beginner-ness I don't recognize what the good deals are. Good luck to us!

@Jesse Waters thanks for the input! There's definitely a lot we need to figure out at the moment; I just wanted to see what the greater BP community's experience is with partnerships in this particular area of REI.

Thanks!

Thanks for the response Wendy! No doubt - this is an investment that I hope will appreciate, and I am preparing myself for the long haul. First time landlording too, oh lawd...

Hi everyone,

I'm thinking of purchasing my first investment property, most likely a rental. I realize that this might be a silly question: if I purchase the property with a partner, what kind of profit should we expect to see?

Even if the positive cashflow does wind up being ~$100-200 a door (which I understand would be considered a win from the podcast, forums, etc.), we would technically only be taking home around $50-100/month. Or is the more attractive incentive a split in the profits when we decide to sell the property?

@Brie Schmidt

Thanks Brie!