All Forum Posts by: Joseph Matarazzo

I currently live in NJ and have a multifamily here. I just got a long term job in Astoria, NYC. I am now looking to purchase another multifamily in the Queens area. Can someone please offer some insight as to which areas are hotter or colder than others or what to look out for? Any feedback would be very appreciated. I prefer a 3 or 4 family, and my budget is up to 1.3 million. 

Hello everyone, please feel free to read my story and review my deal. 

I purchased my first property in Summer of 2019. A three family in Plainfield, New Jersey. Purchase price of $430,000 using FHA loan. Each unit is 3 bedrooms, 1 bathroom for a total of 9 bedrooms and 3 bathrooms. It is 3300 SF and has a three car detached garage. I inherited tenants, and chose the worst of the three units to live in and flip while I live there.

Income: Unit 1: $1350/mo (drastically underpriced but a great long term tenant). Unit 2: I live in, and get $500 from a roommate. Unit 3: $1500/mo. I also rent the three car garage for $400/mo.  Total is $3750 plus I live in one unit. 

Expenses: Mortgage, interest, and insurance: $3500. Repairs: $200. Vacancy: $200. Management: $0 (I live there so I manage it, but I could be paying myself?). Utilities/Trash/Sewage: $350. Total: $4250/mo

$4500-$4500= 0 cash flow, but I do live in one of the units. So I essentially live for free while also building equity. 

Fast forward to today, the unit 3 tenants have moved out and I flipped the unit and I am now getting $1900 for the unit. The unit 1 could rent for 2000 but the tenant is so good and with covid happening i havent raised the rent yet. So my cash flow is now +400 with room to improve. Also, the value of the property is now $480,000+ and I have about 18% into it. 

Question for bigger pockets: What does everyone think of this deal for a first time investor/home buyer?

Moving forward:

Option 1: I have the option to refinance and drop my monthly costs by $500, but the catch is that I will be locked into living there for 1 year due to mortgage terms. I currently have around 60k saved up for another property purchase but would have to wait and keep saving (hoping rates dont jump too high and also that property prices drop by next year). 

Option 2: I dont refinance, and sometime this year buy another 3-4 unit multifamily and move into that one. I would rent my current unit out for another $1400/mo (1900-500) cash flow plus whatever I made from the new property. 

Thoughts, critiques, concerts, feedback? 

I purchased my home in 2019, its a 3 family with an income of $3650 (one unit I live in, and I rent out two so if I move out the cash flow will go up significantly). Its current value is $485,000 or maybe a little more. I am the sole owner and I have a conventional loan. I am located in Union County, NJ. The next property would also be in Union County, NJ. 

Hello everyone,

I currently own one multifamily in New Jersey which is also my primary residence. I am looking to purchase a second multifamily property. My question is, what percentage down payment is the minimum I am able to put down for different loans? Are there any loans that let you put down 10% for example instead of 20% ?  Would me making this my new primary residence make a difference?  All advice welcome. 

I think we all have the same thoughts. It may be best to save and wait for September to see how this year evolves. Glad I am not the only one thinking this! 

Hello everyone,

New here. I am located in central/northern NJ, or Plainfield, NJ specifically. I have one multifamily and I am looking to expand and purchase a second multifamily sometime this year. Buy and hold for cash flow through renting. Preferably 3 or 4 units. I am looking online, and outside of Newark or Elizabeth areas, there just doesnt seem to be much inventory recently. Anything listed online is swept up in a day or two. 

My question is: Do other investors notice the lack of inventory? Do we think this is a seasonal issue that will fix itself in the coming months? Are there still people fleeing NYC and buying whatever they can? What are some ideas you have used to find available properties? I appreciate feedback. 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $430,000
Cash invested: $40,000

Owner occupied 3 unit building. Consists of three units, each one is a 3 bedroom 1 bathroom of about 1100 SF. Currently living in one unit, renting out two plus the detached garage. This covers 95% my costs while not yet making me extra money, but I live for almost free! When I rent out the newly updated unit for a higher rent, plus when I refinance then it will have a much higher cash flow which will have me living 100% for free and bringing in another 300-400 a month.

What made you interested in investing in this type of deal?

Covers my cost of living, good first investment property.

How did you find this deal and how did you negotiate it?

Researched the area, worked with a realtor.

How did you finance this deal?

Conventional loan.

How did you add value to the deal?

I moved into the worst unit and renovated it slowly as I lived there the first year. Recently I had my tenant move out and I am just now finishing updating/ flipping the unit.

I am also planning on refinancing to a lower interest rate to save money / increase cash flow.