All Forum Posts by: Lamont Chen

@Brian Baller

If you are able to pull out all your money and you can keep finding deals like property 1 you can acquire, fix, and repeat quicker than saving up another $60,000.

Who knows many property 2 will still be on the market after you are done with property 1 and you get both!

@Joshua Nowell

Seems very tight. If you get your desired price of 350k + reno of 250k = 600k and you are only getting an ARV of 675k. With a "75k" profit there could be tons of stuff which go wrong plus any interest which may accrue on this money. Also if you plan to sell with a realtor that is a couple % off your profit as well.

Probably the reason why the home may be sitting on the market for so long would be the price is too high. If you can get it for 250k then maybe but a drop from 450 to 250 could be unlikely.

I believe you should shoot for 25-30% profit so home + reno should = 70-75% of ARV.

@Forest Konwerski

You can check with your local realtor to see for the area if folks are renting apartments, townhouses, and/or single family. Something to consider would be to read the HOA guidelines for the townhome you are pursuing in addition to the location for these rentals.

A realtor or property manager should be able to tell you about the rental market.

Also I am not sure what your long term goals are but whichever turnkey property you purchase... instead of paying it off quickly you could save for another  home to purchase when you move from house to house.

@Will Fraser

Colorado - Denver, Boulder, other towns in the area

Salt Lake City, Utah

@Bruce Hansen

For regular 1 story home conversions to 2 story.. the architect and structural engineer perhaps would need to assess if the foundation can supported the added weight for the additional.

Since you plan to do this for a detached garage I am thinking other factors you may to consider (besides zoning) would be electric, gas?, water, and sewage lines running to and from that detached unit.

Also what would your ROI be on this vs perhaps buying another property. I know you mentioned difficulties getting estimates but something to consider.

@Shawn Brickner

Not sure how much it will cost but you could calculate your ROI.

- How much it will cost to convert to bedroom vs how much rent you would receive?

-- For the same amount of money could you invest that into another deal? What would be the ROI on that.

@Simeon Wright

Nice to meet a fellow future North, NJ investor. Good luck with any deals you are working with and feel free to DM me to connect.

@Derek Brown

Depending on what RE school you went to there could be review sessions you can attend to pass the class. A large part of the test is vocabulary and understanding what to do in different situations (at least in NJ). Since it is a new world with new vocabulary... you should know the terms like the back of your hand.

Besides that take the practice tests in the textbook and any you can get your hands on.

@Anthony Simboli

You may be able to check with your realtor and attorney for verbiage but you can potentially add a contingency in there to make sure it can be zoned for what you want to do without spilling all the details.

Good luck!

@Anthony Simboli

Is the way you are intended to subdivide the land allowed per the zoning for the area? Else you would require a variance which could be a toss up on whether or not it gets approved. If it is allowed you can try to connect with an architect and builder to see what can be built to maximize value and cost to see what type of revenue/profit you could expect.

You could buy the lot, subdivide, and sell at a premium with preapproved build plans.

Good luck!