All Forum Posts by: Joseph Guzzardi Jr

@Ravi Pamarthi If you are buying rentals for cashflow purposes only, particularly in NJ that's a challenge. Buy n Hold Real Estate will always have its costs and even if you are cashflowing $800/month, you are going to need to do repairs, updates, unit turnovers and this will eat at that number. Play the long game, your bigger returns will be from buying at a discount, fixing up properties and holding onto them before refi out or selling.

@Jonathon Bernstein Welcome, from another fellow NJ investor. House Hacking best way to get started. Look for cosmetically outdated buildings that you can add value to. Also units that have extra living space to convert to an additional bedroom would be ideal.

Since your background is in finance, I will emphasize this... DO NOT OVERANALYZE YOUR DEALS. Do not expect amazing and outrageous returns within 12-18 months. Buy n hold Real Estate is exactly that. Hold, repair and fix up as you go along for the journey and your larger returns will be made when you refi or sell.

@Jennifer Katherine De Loughy Depending on your goals, I would suggest a mentor or mentorship group at a minimum. It will make your learning process much easier and accelerated.

I will be speaking at a local REI event in Feb in Central NJ. Not sure if I can promote or post publicly. Happy to discuss why it's important for a mentor/mentorship group further.

@Hayat- Hyatt Barron Welcome. This may be controversial, but "true passive income" in my opinion is one thing and one thing only. This is investing privately as a lender to a local investor or being LP on an investment such as a syndication.

And even here, you still need to be "active" to research who you are lending your $$ to, and due diligence on the deal itself prior to investing your money.

Hope this helps.

 House hacking will be your best bet to get started. Please set expectations accordingly as you won't be "cashflowing" right out of the gate. This is a long term play, but the best place to get started to reduce your living expenses, begin the wealth building journey, and get used to working with tenants. 

Sincerely, experienced Landlord, investor and agent in the NJ area. 

 If you are looking to house hack, you need to consider your "net total out of pocket expense" compared to simply renting or buying a single fam in that same scenario with you & your partner. Your net should be less overall. Other feedback on here is correct; putting 5% down on a multi and expecting to cashflow within 12-24 month is not exactly realistic many times unless you are buying a steal of a home. 

Rents will continue to rise year over year if you keep up with your property and if you hold onto the multi long enough you will eventually cashflow once you decide to leave. 

You can also get creative, YOU ARE LITERALY USING THE SAME FORMULA TODAY! 

Rent the entire 2 family out by the room and I bet your cashflow will increase significantly. 

@Ben Stanley

Blood

Sweat

Tears......

Some sarcasm here ......

Leverage, partnerships and busting your tail.

@Tanner Sortillo The number one answer is it depends on the investors goals.

How active does the investor want to be?

What returns is the investor looking for?

What is the timeline of that return?

Answers to these will get you the answer to next steps.

@Nadir M. Good luck getting your tenant to place TP in a waste basket. That's pretty wild in my opinion.

Your best bet is when you renew the lease to add in a clause regarding plumbing repairs related to negligence of the tenant. Or general repairs of $300 or less.

You should ensure however your plumbing is actually in good shape. You may need to bite the bullet the next few months until the lease is up.

Hey everyone,

I am in the midst of my first out of state purchase and business venture. I currently own multiple properties/buildings out in NJ but am in the process of acquiring 2 homes in the San Antonio area, specifically for Assisted Living.

I am seeking referrals for property inspectors, as well as trades including plumbing, electric, handymen etc .

Thank you in advance.