All Forum Posts by: Jonathan Santa

Hello everybody,

I have had my eye on an MLS listed property for a short time. It is listed at 215,000. It is a duplex (side by side) in Garfield NJ. One unit is a one bedroom with a miniature kitchen area and a fair size common room area. The other unit appears to be a two bedroom and in general is a tad bit bigger. Both units have one bathroom. From basic research I have concluded that the smaller unit could probably demand 900 a month, and the larger one 1150 or so. I imagine I would ideally want to price them a bit below market average to beat out some of the competition. The property has only street parking. Based on pictures, the current owner and the tenets appear to have keep the property clean. I was told a new roof was put on in the last 5 years and all utilities are separate. Aesthetically, this property is lacking (from the outside street view). It has the appearance of a converted two car garage and the face of the building is an unflattering stucco.

Details and attributes aside, this property has been listed on the market for over a year. It just seems that the properties listed price is too high. I played around with some numbers, and it would seem the only way this property would properly cash flow would be if the investor picked it up somewhere around 168,000. Even then the cash on cash return is nothing amazing. 

So would it be rude to offer a number that was somewhere around 75% of the asking price?

Also if somebody from north Jersey has experience with, and can shed some light on, what numbers could be expected at closing along with what operational expenses would look like in the first month, it would be greatly appreciated. I would like to get these numbers as accurate as possible before making any offers. 

Thanks! 

Nice to meet you Ceary. What type of RE vehicle and strategy are you interested in?

Hello BP Community,

I have been on bigger pockets for about a month or so now. I find the community to be enlightening. While I have posted once in these forums, I realize that I never actually formally introduced myself. My name is Jonathan and I am a north Jersey resident (hence the small fish in a big pond title lol). This market appears to have its difficulties for newbie investors, but I plan on making it work. My goal is to become a part time RE investor through utilizing the simple buy and hold strategy. Once I have some experience and the appropriate network, I can see myself transitioning into Brandon's coined BRRRR method. I see myself utilizing an FHA loan to house hack my first multi-family that I can grab at a maximum of 80 cents on the dollar. Because taxes are so high where I live, it is crucial that I find a true deal. I have a farm area in mind. Last year I decided to get my real estate license, but quickly realized that game was not for me at the moment. I have recently placed it in referral mode and remain grateful for the knowledge acquired through the journey. I currently work as a union laborer out of Rockland County NY. Depending on the contractor and the season, I have weekends off. My downtime as of now has consisted largely in educating myself (reading/ podcast/ webinars/ online coaching). While I am content with self educating I am also hungry to meet locals, find mentors, and expand my network. I understand successful investors time is precious, but I would like to provide services and add value. If this means cleaning a unit to get it ready to rent or cold calling for potential deals that is more than fine with me. You let me know what you need and I will do my best to be of service. Finding and building a relationship would be amazing, but regardless of the outcome I will continue to move forward in my RE investing journey. I see my first deal being struck within the next 6 months!

Thanks for the feedback! @Jake Thompson I could definitely see how you would imagine all your work is done after getting the property, but Im sure it is safe to say that it only has really just started. Congrats on successfully house hacking your first property. As of now I have been gathering a lot of my information and knowledge from the "Buy it. Rent It. Profit" book. But I do see myself purchasing Brandon book as well.  

@Todd Magin, thanks for the confidence boost! And yes I 100% agree. One of the main reasons I signed up for the bigger pockets pro membership was to use the rental calculator as many times as need. I have played with it a couple of times. From what I understand thus far, it seems imperative to have a lawyer on your team when it comes to making an offer, and perhaps even when it comes to sending a "letter of intent"...

Hello Everyone!

I am new to bigger pockets and I am hoping some wiser community members can share some insight. After recently rewatching the 200th bigger pockets podcast I realized I might just be ready to make a move on a property. I have some general education, a modest savings, and a credit score of 753. Last year I received my real estate sales license for NJ, however I work in construction as a union laborer. I want to pull the trigger on a property within the next 5 months but I still have yet to determine the most ideal location. I would like to purchase my first multi-family unit with an FHA loan due to the low cost of entry. This assumes that I would then house hack the property. House hacking makes sense, but this means it would also have to be in a neighborhood that is tolerable and close enough to my available work which fluctuates between Rockland County NY and Manhattan. As of lately my mind has been focusing a lot on the Garfield market in NJ. While property values have gone down over recent years, the rental community is strong. Right now I am looking at a 4-plex on the market that is listed at $419,000. This building consist of 4 one bedroom apartments that are currently being rented below market value (approximately $950 per unit). I still have to do my due diligence when it comes to this properties operational expenses. I can go on about some more details on this specific property, but for the purpose of this post I am going to end the details there.

Perhaps some of you can assess my situation and let me know what you think. Am I missing any key facts? Do I need more education? Or should I focus on just solidifying a team and going for it? Maybe some of you are are in the NJ market and know great places for up and coming investors to get involved. Any and all feed back is appreciated! Im also eager to connect and chat with like minded buy and hold investors. Maybe I can take one of you out to coffee! (wink wink) :) 

Thanks!