All Forum Posts by: Josh Thompson

A) Net operating income is the money you have to work with after you pay your reoccurring bills. So if you get 1500 in rent and your PITI are 1000. your NOI for that month is 500 which you could decide to set aside for vacancy, repairs, cashflow etc...

B) Dont get too caught up in the 1% or 2% rule, its just a rule of thumb. I would use it on your purchase price plus repair costs. Focus more on the cashflow and ROI.

C) Purchase price is not necessarily market value. Purchase price would be what you actually got the property for. Market value is what the house is worth based on comps in the area. You could purchase a property for well under market value if you are a good negotiator, if the seller is motivated to sell and you can close quickly, or if the property needs significant rehab.

Net operating income does not really include holding costs while rehabbing because NOI is a factor when the rehab is done and the property is rented out. There is no NOI if there is no rental income yet.

Did you base your ARV off turning the den into a third bedroom or is that the ARV for 2 bedrooms? Also, banks do not typically like to do traditional financing on a property that needs a lot of work. A hard money lender is probably going to want 25% down but may cover most or all of the renovation costs. The good thing with hard money is you can close much quicker, which makes a lower offer more desirable.

Yeah, I just did the rehab calculator not the flip one. I didn’t run any comps yet, but my guess would be that the arv is 350-400

I am trying to get a feel for estimating rehab costs. I used J scotts book to run these numbers. I rounded up in most cases as NJ is on the more expensive side for labor. The house is nearly 200 years old so let me know if i missed anything to budget for or if any number is way off.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

@Brandon Spurlock did you have contractors come in and give rehab estimates before you put an offer on the property, or did you already have an idea how much the rehab should cost?

Looking on the MLS, it seems like there is opportunity to invest in Multifamily properties in Seaside heights. 2 family Properties a block from the beach and boardwalk are going for around 300k. Does anyone here invest in Seaside? I'm curious what the numbers look like to Airbnb a unit vs. long term rental.

Unfortunately, I will be working overtime this month so I will not be able to attend this meet up. Looking forward to the next one

@Andrew Boettcher no I have not moved out. I’ve just heard of people being denied mortgages because of being suspected of fraud

@Christopher Lombardi Nice. I hope to get to that point down the road. Let me know if you have any questions about Rahway. I’ve lived here my whole life