All Forum Posts by: Jonathan Greene

That's a tough price point where I am @Juan Reyes in Essex, Bergen or Passaic. At 120k, you will need to put some cash in to get the rents up higher for better long-term value and there are only a couple of towns where this will be available.

@Christie Duffy is right on about the Montclair (and surrounding areas including Bloomfield and Belleville) multi market. You will need to bid against many people for the nice ones to win and then that eats into your long-term ROI and cash flow. We have seen offers even in Belleville reach 17 on one two-family that wasn't even that great to be honest. The multi market is flooded with first-time investors, seasoned investors, aspirational house hackers, etc. Also, right on about FHA. If you are battling for a multi, no FHA loans will win in this area because of the inspection/appraisal requirements. A lot of the older multi-family homes will have tic-tac things that will come up so the sellers are looking for cash or high cash down, especially when they can balance it against nine other offers.

@Nick Cucci if you are using companies to purchase from and property manage, there is already a built-in conflict to me, especially in another state. Did you view these in person at any time? I am personally not an advocate for out-of-state REI on your first few deals. I feel like you need to be able to see the properties and interact with them and the property managers to get your money out of it. I feel like if the money you are paying to these companies is audited, you are probably losing a lot more money than you should be.

If you are looking for high quality, I recommend Wyanoke Builders in Montclair. They will GC the whole thing but may be a bit more expensive. It really depends on how much work you want to do on a project @Anthony Hidalgo . I know of some smaller outfits as well.

@Su Soma, I have several clients who go every week and bid. What @Account Closed said is spot on for the cashier's check to bring. The starting bids are below the upset when they upset is super high, but when the upset is low, the starting bids are higher. There is no $100 start price and many properties that are on the list do not make it.

Buying at the sheriff's sales is a must-research endeavor. You must know the block values, home values, area comps and you must assess the rehab from the outside only. You need to know the top out flip value for a flip and the rental income potential for a hold.

The final list is posted at 1 pm and usually the auction begins at 1:30. I hope this helps.

@Lamar George , it's illegal to contact a seller before the home actually expires, but there are agents who do that. You can't make the inquiry until it's expired on the MLS and that is why people get bombarded on that day.

Those taxes are realistic in Essex, but your rents should be much higher. Multi-family rents will run higher than condos, with proper upkeep of the units. You can certainly do well with multi-units in Essex, especially if you can rehab and grab some in East Orange or Orange. Your rent spread back will be much better there than Bloomfield, where your taxes will be higher. Train access is a must in Essex to get the best rents.

My pleasure @Walmsley Gedeon. 

@Account Closed. He is a colleague of mine and works the Central Florida area. He understands the investor game and can help. PM me for his contact info.