All Forum Posts by: Kunal Mishra

Hi @Bob Roach. I too have started my extensive research on PA, specially the Philly and Delaware County in PA. 

Cash flow could be good with less appreciation. You should definitely be able to do much more with 150k. 

Jersey City - I don't think so. I invest in Jersey City (I live here) you can get a SFR for that price which will definitely need work and that too in the B- and below class of neighborhoods.

2/3 Family very rare, it does come on the market but goes away same day all cash deal and sometimes 12-15% above banks asking price, think it gets listed on the MLS just for a formality

Union City - had its price appreciation in the last 1-2 years, I think its even more difficult. at a price point of 150K, now remember I am keeping 2/3 family in focus here as these two towns and MF towns that's where you can expect any cash flow give the high taxes in Hudson County. 

So back to PA my friend, I think it is a good market for cash flow. I can't tell whats the 10-15 years from now prospect there, but in the near future definitely something to invest time and money into. 

Thanks

Kunal M.

For appliances I have always used Sears and I think they are the cheapest, I have checked PC Richardson in the past but didn't quite see big savings

Hi Lou,

Flipping in low income neighborhoods could bring challenging they are usually good for buy and holds.

If this will be your first flip I suggest take a map and look for good school neighborhoods and keep a watch on a daily basis for foreclosures, use zillow/trulia/Realtor.com to set up email alerts for thone zips.

You can still flip in areas with school rankings between 4 and 7 but you need to know the area, that applies for any property.

Some namesay thst come to my mind when your say central jersey are, Edison (08820) other zips like 08817 can also be a good watch.

East Brunswick

North Brunswick  - south section

Piscataway - upcoming school district ( again more south the more better)

Franklin township - but I can't break it down by neighborhoodsome

Good Luck!!

I say do a conventional 203k as an investment property.

Put down 20% so you don't have to pay mortgage insurance.

You will have enough cash to pay your contractors the initial deposit, which does not delay any start up work. Once you finish around 25% of the work call for the 203k inspection and they will disburse your money in a week and keep rolling that money with the contractor.

You will have to pay 10% of rehab cost as upfront fee to the consulatant. Plus around 250  per draw which you can keep the it to 2 or 3.

Other thing you need to keep in mind is that you need a contractor that will agree to work on 203k

Also you need to keep in mind that time for closing. Such a loan could take 45 days unless you have the contractors bid ready in your hand, other than that I find this program a good substitute of hard money financing unless you have to close very soon.

@Thomas Butler I see you are in Hoboken, you should definitely look at the Bergen Lafayette neighborhood in Jersey City - Zip 07304. Better than Greenville, will change in the next two years. 

With that park coming on Garfield and other economic developments planned by the city it is definitely something to look at. 

It will be close and you can manage it yourself. 

@Jeffrey Stein The little research that I have done in the last few weeks have definitely popped up the exact same names that you mentioned, Brewerytown, Port Richmond (as North Lib, Fishtown & Kensingtown are expensive and have changed in the last couple of years) 

I think I will definitely invest in Philly in the next couple of months, do you think you can get distressed home for under 50k in these neighborhoods.  

You don't have houses at the price point of 30k in Irvington and newark arleast. I don't know about trenton but highly doubt.

Even if you found one be ready with a rehab cost of atleast 100k.

I think you meant 10-30k under market value.

Even the worst desirable neighborhoodso of Newark are not going cheap just because investors are still buying and due to some positive economic development initiatives the perspective on Newark is kinda high right now. Good time to get in.

Thanks

@Jeffrey A DeAngelis I live in Newport, Jersey City and rent a 2 bed apt here. Due to demand and income quality of people around nobody cares about the electric heat in the apartments. They all have electric heat , they all pay a little more for heat. 

I think what you have to analyze is what type of rental neighborhood it is, and whats the income level of people. 

I say call a few realtors and ask them if they see houses with electric heat and how would the tenants react to that. 

Even if you have to take a hit of $75 per month on rent and don't want to invest upfront in converting to gas heat via steam.baseboard heat it might still be ok in the near future. 

@Paul Freudenvoll welcome to RE Investing and good you got your license. 

I am not sure what your previous experience is with RE Investing. But for starters I would say do the following:

1. I see you are from Kearny, NJ  - start studying your city nicely. Jersey City is not that far for you and gives a very good diverse perspective on RE Investing, it makes you think a little harder as it keeps changing every 2-3 blocks. 

- the key for RE Investing is analyzing what you are getting into. as one deal good be good for you and not good for me. 

2. Online tools and blogs and forums are good source of motivating yourself and finding answers but the real world is the best teacher. Go out and start looking at house that fall under your price range and area of interest (I suggest start within the miles from where you can nicely manage the house)

3. I think your RE license gives you access to MLS that's a big advantage and make use of it to run your CMA's and find deals right away.

4. Lastly , don't get emotional with any house, if you have to let it go then let it go.  You will find something else pretty soon, all you have to do is keep looking. 

BTW - I need to get my RE license, what do I have to do outside of taking the course, are the tests written throughout the year?

Thanks

Hi Ariana,

Welcome to BP, this is a good place to learn, network and get yourself motivated.