All Forum Posts by: Anthony C

Jon - so considering my last post with the reworked #'s, and purely as an equity strategy for 15yrs..do you still not like it? Not looking for cash flow here...pure equity building..

Ok, i've reworked the #'s to equal the recommendations. Since taxes are so high here I like to keep them itemized out, so I just upped the expenses so both equal the 50% rule.

Question, isn't the 2.7% return only on my investment and not factoring the gain in equity? This is an equity strategy not for cash flow. Is my 289% ROI after 15yrs not accurate?

to view a large image of the pro-forma: http://i970.photobucket.com/albums/ae184/thecentfamily/propertysheet2.jpg

Thanks Brendan...the problem is, being in central NJ, below the $200k is very difficult without going multiple tenants, undesirables, etc. Basic, bottom of the line, somewhat decent neighborhoods.. START at $200k :cry:

Thanks Jon, considering my area in the northeast, it's just not possible to get much cheaper property. Taking those things i've missed and you've kindly recalculated.. I do see trouble with this working. If I use 50% rule, combined with my debt service, I would be at almost -$500 cash flow monthly.

I've been reworking various scenarios for a year now and I just don't see it being possible in my area, what am I doing wrong?

Sorry Tried to make a little larger. I did use what I thought was a very conservative 10% increase after 15yrs in property value so not assuming too much there, but in terms of the general strategy... does it make sense or is the house cost too high for what i'm getting in rents, etc.. the NJ area is very tough with high taxes, etc..

Hi,
I'm looking to purchase SFH's in my area and this is how i'm looking at the #'s. The average home prices for the neighborhoods i'm looking in is ~$200k (New jersey).

Please have a look at my 15yr strategy and let me know what you think... I would be doing 15yr mortgages, not too concerned about monthly cash flow, more interested in building an equity portfolio after 15yrs.

If i'm missing anything please let me know! thanks!

Mitch & Justin... what price point would you target for those purchases? At what price is too much for a SFH? $200k'ish?

I can't find anything in the northeast that is under $150k that is actually livable and not in complete shambles. Can I do this between $150 - $200k price points? Cash is not a problem, I can put 20% down or buy all cash...not the problem, but if you want cash flow as you guys speak then what purchase prices and what % equity down?

If you had any real examples north of $100k properties I would love to hear... and very much appreciated!

Thanks Jon, I will check that book out. I have read many real estate strategies thoroughly, i'm in my late 30's and I tend to research things to death, so it's not that I am completely green. I have built elaborate spreadsheets comparing property investments and assumptions vs various investments such as CD's, laddering bond funds, etc.. have looked into commercial but when every other store has an 'available for lease' sign it is discouraging.

Basically i'm pretty discouraged... i have equity available to do larger deals, such as 4+ unit complexes, etc.. and maybe I just talk myself out of each, but the current economy makes nothing seem viable. I wonder how many people are REALLY finding and making deals right now in the northeast. The pending home sales YoY were just released 10am this morning, down 26% from Last April.

I will continue my research, it's the safest thing to do but I appreciate the feedback here and invaluable experience

MIke, that really puts it in perspective..thanks for that great analogy.

I've been banging my head against the wall to get started in my next phase in life so I can leave my day job (eventually), make my money work for me, and I keep thinking i'm being trigger shy - but nothing pans out #'s wise.. I need ideas

That is why after a year of looking at properties, nothing makes sense in my surrounding towns and i'm at a standstill. I'd like to put some cash to work and just don't see how