All Forum Posts by: Joe Edwards

@Joe Edwards Thank you! I agree, I'd rather do the work now if I can, rather than have my tenants calling me every other day with issues. That's just my preference and the funds to do so.

The issue I have with some people (not saying you did this) is, they discourage new investors from buying in certain areas because of what they've heard, or maybe they've had a bad experience. This sometimes deters them from investing at all. Yes, these areas are mainly low income, but for me, buying in Camden allowed me to get in the investing game with minimal funds. Everyone doesn't have access to hundreds of thousands of dollars and I know I didn't! My first property was a $35k foreclosure and my bank gave me a mortgage on it (awkward, I know). It's a 2 bedroom, I put about $3-4k into it (paint, bathroom vanity, etc) and it rents for $1000/month. I still own it, my tenants have been there for nearly 2 years and have NEVER missed a rent payment (nor have they been late). Can't say the same for all of them now, but this experience spoiled me and encouraged me to buy more.

If I would have listened to the people who told me to stay away from those areas I would STILL be trying to save up enough to put 20% down on a much more expensive property in a "better" area. The point is, educate yourself, establish a team, get in the game and gain some knowledge/experience. Have a plan A, B, C , and sometimes D! So what if you lose money and have to sell the house! Is that the worse that can happen?! If so, I'll take it! If so, you've learned so much more from that than not doing it at all. Happy holidays to you!

Nelly PREACH!!!!!!

I agree completely on the A,B,C,D,E- Z plan because this is a marathon not a sprint. I have learned a lot from all my scares in this game. As I like to call it my degree from the UNVIVERSITY of REAL LIFE! The best education money can buy.

For me I come from the very places we have mentioned in this discussion so I feel a certain kind of away when I hear people who don't really have a clue at how these environments functions think its easy. There is definitely gains to be had in these areas I just want to advise the new to really understand what they are getting into.

As I can tell from your comments you are mentally built for this game and I love it! Anyone doing this that is ok with understanding there worse case is they have to sell and maybe loss a little money to keep it pushing is my kind of investor. A very aware investor!

1 Vote

Originally posted by @Nelly R.:

@Joe Edwards My last 2 rehabs for SFH have been an average of $40-50k. Not sure about MFH because I don't own any. I purchased low so that I can do complete rehabs and know that majority of the home is new (less issues in the future). I do my research and buy in areas that are comfortable for me and that will get higher rents (including Section 8). My properties are near Cooper Hospital, charter schools, and in more family oriented areas. One of my homes I paid $24k, put in about $50k (my choice to do everything new....and tbh, I overpaid for some things), and it appraised for $130k. Not all of the homes will get these numbers, but many will.

Section 8 is big there but not all of my tenants are Section 8. All of my tenants are paying (thank God). It doesn't matter where you invest, vetting your tenants well is key. To be honest, I'd prefer Section 8 at a time like this, but that's just my preference. Investing in areas like Camden yield great returns for me, but also for me the picture is bigger. Maybe I'll get into higher priced, more prevalent areas at one point in my life but for now, I'm good! Everyone has an opinion on these areas. Some are backed by experience and others are backed by what they've "heard". I could go on for days telling you people's opinions on investing in Camden when they've never even stepped foot into the City or know nothing about it! I have friends that are doing extremely well in all of the areas people warn others to "stay away from". Camden, Newark, Irvington, Paterson, etc. We are all not the same. I do what works for me!

Nelly that is fantastic! I'm glad to hear you are winning in that market and you understand that market very well. My statement was just being general to all the new investor that hear through the grape vein that those markets are easy because of entry cost and find out the hard way because they end up selling there asset to folks like me for pennies on the dollar because they want out.

But i must say its refreshing to hear that you fully renovate your properties. That is my investing strategy as well. It has proven its self to be a great model for high appraisals, much higher quality tenant demand, great rent numbers and most importantly no major issues with the asset for the 1st 7- 10 years.

0 Votes

Originally posted by @Justin Goodin:

Midwest is a great cash flowing area. We are focused on large multifamily assets for syndications. Let me know if I can help you in the mid west.

Shoot me a PM with with some numbers that you are working with in the Midwest in your deals. I always in interested in opportunity streams

1 Vote

@Rick Oaks

This is why I put cameras, ring door bells and we have quartly site visits/ maintenance check up with our pest control provider to always have eyes on our asset. If tenant isn't keeping up with the unit they will be notified and if that issue is not address there lease will not be renewed.

Don't be a absent owner because the money is flowing in. Keep a eye on your asset at all times

1 Vote

@Jason Malabute

First, Happy born day!

Second, I'm feeling the Nipsey quote!!!

But, my man you have to live in the moment! I personally believe your goals should be the direction you want to go in and the life/ business you see yourself doing.

Buying a certain size asset means absolutely nothing if its a asset that doesn't make any sense and doesn't generate great pure cash flow. I notice a bunch of the stories on BP where people have 30-50 units in there portfolio and they cashflow less then 2or3 of my assets and they believe they are killing it. Its all perspective. I personally prefer quality over quality and my goals are generation wealth to leave to my grand kids and great grand kids.

4 Votes

Originally posted by @Justin Goodin:

@Brian Garrett Hey Brian, it depends on the market as others have stated. I know for Indianapolis, you can expect to get a 12 - 20 unit property. Are you focused in the FL market? I can see how it would be tough in that market. I would consider looking in more affordable areas and Indy is a great place to start. Let me know if you want some broker contacts or specific areas that are good.

@Eric Johnson What do you like about the Chicago market? Are smaller multifamily assets tough in that market? We are targeting large multifamily assets for syndications but we don't see Chicago as a market worthwhile.

@Joe Edwards Wow I can see how that would be tough. What size assets are you interested in? Come look in the Midwest markets. Let me know if I can help.

Justin my investment strategy isn't focused so much on asset size but more focused on BRRRR, Infinite Return, Appreciation and Cashflow! For example my average duplex holding is infinite return, $2000-2500 a month pure net cashflow with 30% equity. Given the market that I am in the pay down is amazing and the appreciation is incredible.

So for me I prefer 2-4 or 30+ in a non rent controlled area.

I haven't done any out of state deals. Are you getting great numbers in the Midwest?

4 Votes

@Stephen Scire I would most certainly do a deep dive with the town on the existing usage of this property. If it is not legal usage currently or won't be legal once existing owner transfers to new ownership. So definitely do your do diligence because change of usage can get very expensive and also be something zoning will deny

Good luck!

0 Votes

@Daniel Alfandre

Not sure about B-more but NJ section 8 pays more for 3 and more bedrooms and they are in much more demand.

1 Vote

@Inemesit C.

As a very active investor in NJ I would tell you and all the "NEW" investors looking to invest in areas like Camden, Irvington, Newark, Paterson etc...... to tread very lighty!!!

Yes these areas have a low barrier of entry which makes the novice investor excited but be wanted the tenants in these areas are not the easiest to deal with and the rental environment is not for the weak hearted.

I typically tell new investors to place good money in a good environment. As a new investor nothing wrong with buying a up coming area that is already 60-70% coming. Buying when the neighborhood is only at 10-30% is rough so prepare to bury your money for the long long haul.

Best of luck in your deal search!

1 Vote

@Nelly R.

The questions I have as a active NJ investor are what is the average multi purchase/ rehab pricing coming in at, are most of the rents section 8 now down there and lastly what is appreciation looking like on these multi family assets?

Looking forward to reply. Thanks in advance

0 Votes

All Forum Posts by: Joe Edwards

Joe Edwards has started 0 posts and replied 94 times.

Post: Camden, NJ Investments

Post: Camden, NJ Investments

Post: What size multifamily can you buy for $1MM in your market?

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Post: TODAY IS MY BIRTHDAY BUT THERE'S NOTHING TO CELEBRATE

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Post: Commercial zoned residential triplex

Post: 2 or 3 bedrooms for Section 8?

Post: Camden, NJ Investments

Post: Camden, NJ Investments