All Forum Posts by: Joe B.

I currently own several MF homes that were purchased between 5 and 12 years ago. Low mortgage rates, low entry price and very high cap rates. It has been harder and harder to find scenarios like that in this economic climate. If you had $1,000,000 cash, what would you do? Pay down mortgages, hunt for new properties, leverage all $1,000,000? Interested to hear everyone's thoughts. I am young enough that I don't need the $ to live off of now, but would like a nice return that I could pull from in the future. I've also done a decent amount of house hacking. If BRRR is the way to go, I'm happy to hear about it. Thanks in advance.

Hi Alec, unfortunately not.  We found a deal and were busy for a while, but we're back to looking for another project. How's it going on your end?

@Dawn Peterson where in N Jersey and when did you buy? Home prices have gone up in certain parts of NJ as people flee the city.

What about section 8? Guaranteed portion of the rental payment coming directly from the government. If you can find a good section 8 tenant you can’t go wrong.

I’m comfortable buying the worst house in a halfway decent neighborhood and turning into positive cash flow. That being said, everything in Trenton appears to be the worst house in the neighborhood.

Does anyone have success stories investing in that area?

Cash-on-cash is much higher and cap rates are indeed that high. Here’s a breakdown of a recent deal.

3 Family

Purchase price of $185K

Rehab costs of $45k

Cash out refinance at $310k

NOI - $42,956

CAP – 13.86%

We’re certainly not seeing these deals every day, but it’s one of a few that we’ve been able to capitalize on. In looking at syndicating or approaching larger multi-family opportunities, am I wrong to think that this can be reproduced on a larger scale of say 20 units+?  Is my time better served finding these deals every 6 months or going gang busters to close the equivalent of these types of returns in multiple properties?  I think I know the answer, but maybe I'm missing something.

Good morning, new here and wanted some feedback on current strategy vs what I'm hearing on podcasts, forums etc. I currently purchase distressed multi-family 2, 3 and 4 unit properties repair, rent, refinance and move on to the next. I’ve been able to do this with tying up very little of my own capital and refinancing close to 95-100% of my original investment. Cap rates when all is said and done are between 13-19%. From my point of view, I’m doing things the right way and can repeat this every 6-9 months depending on inventory. Are these returns/cap rates scalable/realistic to larger projects?