All Forum Posts by: Lior Solomon

Hi @Brian R.

I've been trying to figure the same question for the past couple of months

I live in Bergen county NJ and my mission statement when I've started looking was kind of yours, and I was looking for 8% cap rate as a target.

Here's my 2 cents

1. There is no such cap rate in NJ unless you go to risky areas such as Camden, Trenton etc. the reasonable cap rate you should expect in decent areas are 6%

2. I would look into Essex county (Bloomfield, Oranges, Linden etc) and Bergen county(Ridgefield park, Lodi, Garfield etc)

If you are looking for someone to help you finding the relevant prospects in Essex talk to @Darren Sager , he is great.

I hope that helps,

Lior

Hi @Eric Nguyen and @Chris Jones

Here is a breakdown of my expenses

Clearance and Maint : $400

Insurance : $1,107

Legal : $738

Management fees : $3,690

Repairs: $500

Auto and Travel : $100

Taxes: $5,900

@Eric this property does meet the 1% (monthly income $3050 and property price $300,000)

Hi @Eric Nguyen

Here is a quick example of a property I am examining right now in Garfield

Purchase price $300,000

Gross yearly income of $36,900

Vacancy allowance of 7% : $2,583

Expenses : $12,435 (I'm keeping 10% management fee, though I will manage it myself)

Net income : $21,882

Cap rate : 7.29%

Makes sense?

Hi @Chris Jones

I think it all depends on your investment profile. as for "the quality of the tenants" it also depends to your standards :)

I'm a new investor shopping for deals for the past couple of months.

I know that there are great deals in areas that I won't feel comfortable to go visit at night and obviously my safety instincts aren't necessarily objective at all.

My point is that I believe that there are opportunities everywhere and its all about understand as quick as you can what is exactly that you are looking for and what would you feel comfortable to manage and live in your case(and that takes time).

If you go into Essex county which has a great commute to the city there are plenty of deals around the Oranges cities, Bloomfield, Union, Rahway etc.

I guess Darren Sager will soon shine in, he is savvy in those areas and you should definitely talk to him.

I am also looking recently into Bergen county and just about to close a deal in Englewood.

My recent search found relevant properties in Garfield, Hackensack, Fairlawn and Ridgefield Park. With cap rates around the 7%-8%.

@Lamont Hopewell All the Bergen country cities mentioned above have reasonable taxes ($5,000-$9,000).

Good luck!

Thanks @Darren Sager for organizing last night meetup.

It was a pleasure meeting all the BP members and getting some behind the scenes on BP website from @Brandon Turner

Waiting for more to come!

Lior

Count me in @Darren Sager

Thanks!

Thank you @Tim Norris

I started shopping for a commercial insurance, hopefully soon I will understand the costs difference.

Do you have any idea if its substantially more expensive then a standard home insurance?

Thanks,

Lior

Hi BPs

I'm about to purchase a single family occupied by an attorney office.

Does anyone has any idea how does this type of tenant will effect my insurance costs?

What are the variables effecting the insurance cost in case the insurance company forces me to get a business insurance?

Thanks in advance

Lior

Done!

Welcome @Hassan Johnson

I warmly recommend listening to the latest BP podcast #42

http://www.biggerpockets.com/renewsblog/2013/10/31/wholesaling-podcast-mike-nelson/

I think its a really good walk through to start up your wholesale business.

Good luck