All Forum Posts by: Kyle Knowles

@Elijah Williamson Simply consider how long you think will stay in your apartment, say 3 years. Then consider how long it will take you to turnover the unit. Paint, carpet, ceiling tiles etc., and marketing and finding a new tenant, approx 2 months if a rookie. Add how much rent will accumulate during that turnover and add all costs. Then divide by how many months the tenant is staying there.

Example:

3 years for every vacancy

2 months for every turnover

$2500 for contractors and marketing

Rent: $1600/month

$1600 x 2 = $3200

+

Turnover cost $2500

Total Vacancy Cost: $6700

Total Rent during 3 years: $57,600

Vacancy/Rent = .1163 x 100% = 11.63% Vacancy

I’m looking to get my real estate license in PA and in Jersey but I can’t find any in-person courses to take. Does anyone know of any in the North/Central Jersey area? Also although i’m aware of “flat-fee”, and “split” brokerages, but I’m on the fence of which to apply to in each state once I get my license. I have property in PA, and I would just be utilizing the benefits of being an agent for investment purposes out there. However, I’ve lived in Jersey my entire life, Morris County specifically, and many of my friends are graduating college looking for places to rent/buy. Any thoughts? Thanks BP members.

I’ve recently closed on 3 units in Scranton and I’m looking to interact with many of the investors in the Wilkes-Barre area! If you invest in the area, shoot me a DM. Would love to start communicating!

@Nathan G. put in an offer of 132 for both, and after much negotiation we got them UC for 114

I've looked to start investing in Scranton, PA. Scranton is a down market right now and has been definitely for the past 5 years and some may argue even 10. Due to this, Forbes has labeled Scranton one of the top 5 cheapest cities to own a home in the country.I realized that Scranton is a decently big city and to tackle on the entire city would be ridiculous, so I printed out insights on every single zip code and niche'd in on one particular one. After looking at a house that caught fire a few blocks down, the Buyer's agent informed me about the zip code I later decided to focus in on. Furthermore, I started looking at houses in the area on the MLS and quickly started doing a quick run of the numbers on multiple properties. I decided a fully rented duplex would be easiest to handle due to the fact I live out of state and they already have property management. However, after calling the seller's agent, we got him to inform us all about the seller's situation and even about some pocket listings that had not hit the market.

We discussed the duplex over the phone and I said I'd like to walk some of the other properties he was selling in the area. Fortunately they were all being sold by the same small LLC. I already knew what houses I wanted before I walked them. I decided my max budget was $135,000 for a 4 bd/ 2 ba duplex listed at $95,000 and a 3 bd/1 ba SFH originally listed at 105,000 but dropped to 68,000 after someone fell out of a previous deal.

The duplex is already pulling in gross $1,200 and the SFH is vacant. I put in an offer at $125,000 and they countered at $135,000. I then countered at $132,000, really wanting this deal. They accepted and we went under contract. After doing some inspections, I had to do some more negotiating. I knew the SFH needed a top to bottom reno, but the duplex also needed roof repairs, a new water line, and structure repairs due to a neighbor's gutter being broken and the basement being saturated. After much negotiating, they finally accepted an offer of $114,000.

How did I do? I’m paying for the homes in cash and have a Line of Credit to do the renovations. I don’t know what the market will be like when I finish reno, and I don’t think anyone does. However I plan on doing a cash out refi, and just repeating the process. Please hit me with all the advice you have!

Hello investors, I am a young aspiring investor whose been doing a lot of research when it comes to real estate. Specifically long term rental properties and house flipping. I’ve read the books and listened to almost every podcast and me and my father (77 year old ex project manager for medical arts buildings) are looking to get started. We’ve made some offers and even got a home under contract for a long term rental, but the hot market bumped us out (Morris County, NJ).

My short term goal (within the next 6 months) is to either find a more experienced partner to flip with 50/50, or take on the flip myself with my father although he’s inexperienced when it comes to house flipping specifically. He is on the other hand experienced enough to do inspections himself, price and negotiate with contractors for larger projects, and reading floor plans. I myself can do these things, but not the degree as he. I’m a lot better being taught something. Show me something I can do it

My mid term goal is turn the profit from 6-8 flips into long-term rental property with the BRRRR strategy. By the end of 2024 I would like to have made deals on 20 units or more.

My long term goal is to have enough rental income to equal $120k/year which I can then use my equity to venture off into riskier deals. With each unit making approximately $100/month I would need 100 units to reach this goal. This goal is set for the end of 2027. I am 21 now, I’ll be 27 then.

Why do I need you and what can I do for you? I need you because you can practice on a punching bag for years, but the moment you step into the ring you get KO’d in the first 15 seconds. I’ve done tons of reading, almost too much of it. Ive analyzed my fair share of deals and frankly, all I need to do is get started. I need your experience in mistakes. I want to learn all the mistakes you made starting out and maybe even some you’re making today.

What can I do for you? I’m 21 years old. I’m HUNGRY. I love everything about making deals, and I’m ready to make tons more. If I don’t have the time, I will make the time. Wake up earlier, come later, it doesn’t matter. I also have my father, and about 75k I can put fingers on whenever needed.

Thank you for the time you took to read this and I hope this year hands you an abundance on blessings.

One love.

Will the housing market crash due to the increase in Covid - 19 cases? Is it wise to buy right now or to wait and see what happens with the virus?

I am 21 years old and live in Morris County, NJ. Morris County has the highest median housing prices of the entire state, and some of the highest taxes in the country. I have 150k cash, and would like to eventually go into multi-family unit buildings. I have yet to make my first deal, but I’ve been educating myself as much as I could. Any ideas?