All Forum Posts by: Mike D.

Keep the hardwood floors. As mentioned, it's cheaper and more appealing. I would not want an entire house of tile in the middle of winter here in NJ. 

Where are you getting granite for 35/ft here?

I'm not familiar with the area so I can't really weigh in. But even if you put 10k into the properties and are all in for 25k, at a rental rate of even just 800, the numbers seem good. 

I'd wait for someone who knows the area to chime in. It may be that the area is just that bad. 

How much to get those 10k properties into livable condition?

Also, 800-1300 is a big range.  Is that for similar houses(number of beds/baths)?

 Where on the jersey shore did you build? Long Branch does seem to have a lot of potential. Sections of Asbury are being developed now as well.  I wouldn't stray too far from downtown or the waterfront just yet, but there have been a ton of really nice units built in just the last few years. Lots of restaurants and shopping as well.  

The $2500 includes some expenses. Assuming he put 20% down and financed $264,000 at 4.75%, the debt service is only 1,377  

 Hardwood floors & walk in closet. But I agree, you should be emphasizing those features. Make it clear. 

The room right off of the kitchen, is that a dining room or a family room? 

edit** I looked at the pictures again and it is clearly a dining room. Maybe it is customary there but I wouldn't put carpet in a dining room. 

I remember when I got burned out on my first rehab after two months...and then it took another five to complete it. Haha. Everyone's situation is different/extent of rehab is different so I can't comment on your situation as to what you should do. 

However, there are people on this site who don't even see some of the houses they rehab. 

As for future deals, I will be subbing out 80-90% of the rehab to contractors and only doing select jobs I know I can tackle. I learned a ton on my first rehab. Enough to know someone else can do it better and quicker, saving me money in holding costs.  

I don't know about you, but I couldn't pull myself away from working on the building to enjoy life, knowing that everyday money was being sucked out of my pocket. 

How close are you to completion?

All the more reason to expect higher than average repairs in the future. You are 5 years closer to having to replace the roof, the furnace, water heater, etc. When those items need replacing it will come out the $500/month cashflow right?

Have you had the same tenant for 5 years?

The taxes really kill the cashflow on your rental. Nearly 40% of the rent is going to taxes. Are you really paying $4,400/ year in taxes on a $100k property? That's high even by my standards and I live in New Jersey.  Read about the 50% rule talked about on here.

Your $500/month cashflow does not account for a single repair. I think your true cashflow after accounting for reserves is minimal. I would not keep 65k in equity locked into this deal nor would I purchase more of the same.

Maybe try looking out of the area if you are fixed on rentals.

nice looking rental. Would you mind sharing the purchase price and taxes?