All Forum Posts by: Lamont Chen

@Paul Ferrara Good find. If you change the lens and think of this like a commercial agreement where the tenant is improving the property for their business purpose then it starts to make sense at least in my mind. Airbnb's can be pretty lucrative investments especially ones like the one you have above with special amenities (waterfront).

I know in the Orlando area landlords rent out to tenants whom furnish and airbnb out the units. I spoke with a couple of tenants who operate in this manner and for them they do not want to deal with the headache of owning the property like maintenance, etc. and like the flexibility.

@Yashank Choksi Generally tenants pay for the utilities and solar panels have a large upfront cost which may be better off renovating units for higher rent or investing in other properties.

Sure just sent you a DM

Cap rate = NOI / Sales Price

So yes if NOI increases then so will your cap rate (with sales price remaining the same). I would say often times listings would put "cap rate #%" but in reality they only factor in utilities and taxes as expenses whereas we should also consider other items such as repairs, capex, vacancy, etc.

Hope this helps.

Hey @Account Closed I was in a similar situation as you working in IT consulting for many years traveling 80-90% all over the US and abroad. For myself I personally bought a 2 family home and rented out one of the units plus a bedroom in my own unit since I was barely home. I have a team of trusted contractors who can do work on the house if there are any issues when I was not around but you really get the best mortgage rates with owner occupant. With the rents paying down your mortgage (and then some hopefully) you could save for another property if your career takes you to another city.

Plus when I was home it was good to have a place to park my stuff and fix things around the house.

Happy to connect more if you have any additional questions.

For new mortgages, loan requirements are stricter, especially now with the pandemic. Also, banks have some flexibility with existing mortgages due to the pandemic so I do not see any crash like 2008.

In North, NJ close to NYC I still see high demand for homes from folks exiting NYC and some wiggle room for housing prices to higher. Despite everyone working remote my friends whom work in industry describe a future of hybrid work from home/office where people are commuting 2-3 days a week to the office and work from home the rest of the time.

Regardless whatever deal you wind up picking up should make sense for your circumstance and long term goals.

My properties along with my clients are in North, NJ (close to NYC transport). I am in the process of turning a previously single family lot into multi-family home.

I tend to look for fixer upper single family homes or multi-family homes with below market rents.

@Patrick Jaraique You are in a great position! You could think about purchasing/moving to states with no state income tax and have potential for cash flowing and appreciation (plus "good" weather). Texas, Nevada, and Florida to name a few.

I own investments in NJ and 1 in Orlando at the moment. It is always a joy when I fly down to FL especially during the winter!

@Jennifer Rado Rate seems pretty good. I will DM you a loan officer whom I work with for NJ in case you wanted another quote

@Dalton O'Rourke The BRRRR strategy is still effective in NJ although for certain areas it may be tougher to make the numbers work in terms of cash flow (due to taxes and/or high home price). Nobody can predict the future but North, NJ has been appreciating these past couple years pretty nicely so there is that aspect to look into.

The nice thing about real estate that it is a pretty forgiving investment so whatever you may wind up with if you have a good amount of due diligence performed up front you should still be ok.

Feel free to DM me if you would like to chat.