All Forum Posts by: Michael Bogucki

@Diana Dorantes better to buy and wait then wait and buy

That is helpful! Can I ask do you have any issues recruiting quality tenants in that area? 

I just found this deal online, so I am not working with a realtor yet. Any suggestions for an investor oriented realtor in South Jersey? 

Thanks for all the feedback guys! 

The listing is in Salem NJ. Like i said in previous post, I am brand new to investing. Saw this deal and it really jumped out at me. Since I'm so new I don't have a good grasp on the market in salem and haven't been able to determine how long these types of places stay on market yet. Since I found the listing, no other for rent properties have moved. Anyone have any tips for figuring this out? Thanks again! 

Robert- The property seems to be recently remodeled so very little would have to go into renovation

Sankalp- my goal would be to scale my portfolio to several more rental properties, so cash flow and appreciation are most important to me. This income would be reinvested into my subsequent properties. 

according to some online calculators, the property would cash flow about 9000 per year (using 750/unit for rent)... Which seems too good to be true on a $50000 property! 

i am curious to see how much more an investor must put aside for repairs if planning on renting to lower income tenants for repairs, etc. And how. Much that would eat into the cashflow

Hi all,

I am new here to Bigger Pockets. I have been searching for ways to gain some financial freedom in my life and have recently decided I want to use real estate investing to do so. I have been studying bigger pockets, listening to podcasts and reading over the past few weeks about what it takes to become successful. So, I found this property and it jumped out as something that would be an awesome deal. However, since I am so new to the game, I'd love some feedback from more experienced investors.

The property is a vacant duplex in South Jersey. First floor: 3 bed 1 bath; Second floor: 2 bed 1 bath. Asking price $50,000. Inside has been completely renovated. Mortgage payment would come out to just shy of $400 per month.

The listing agent noted in the listing agent noted that it rents for 1000 per unit. I have a sneaking suspicion that the agent is a bit off on their numbers. IF this is the case this would more than satisfy the 2% rule... in fact it would double it! My thought is that even if the property rents for only half of the agent's estimate, i'd still be in good shape.

Some comps in the area (not perfect because not many similar listings in the area)

3 bed 2 bath duplex: 1300 per month

1 bed 1 bath duplex: 600 a month

1 bed 1 bath apartment: 799 a month

Another issue is that this property is not in the best of neighborhoods (house across street is boarded up, poor school system). C neighborhood at best. Not sure if this is an ideal scenario for first time landlord to take on with the potential tenants the property would attract.

Sorry, long winded post, but please let me know if you guys have any thoughts about this deal.

Thanks!

If you find a property, check for comps on AirBNB and VRBO to see what others are renting for and how much vacancy they have, then you can estimate your gross income. Subtract out the other expenses as mentioned above with the rental calculator. Keep in mind property management will be more expensive for STR if you are hiring a company to do that for you

Hi all, 

I am new here to Bigger Pockets. I have been searching for ways to gain some financial freedom in my life and have recently decided I want to use real estate investing to do so. I have been studying bigger pockets, listening to podcasts and reading over the past few weeks about what it takes to become successful. So, I found this property and it jumped out as something that would be an awesome deal. However, since I am so new to the game, I'd love some feedback from more experienced investors. 

The property is a vacant duplex in South Jersey. First floor: 3 bed 1 bath; Second floor: 2 bed 1 bath. Asking price $50,000. Inside has been completely renovated. Mortgage payment would come out to just shy of $400 per month. 

The listing agent noted in the listing agent noted that it rents for 1000 per unit. I have a sneaking suspicion that the agent is a bit off on their numbers. IF this is the case this would more than satisfy the 2% rule... in fact it would double it! My thought is that even if the property rents for only half of the agent's estimate, i'd still be in good shape.

Some comps in the area (not perfect because not many similar listings in the area)

3 bed 2 bath duplex: 1300 per month

1 bed 1 bath duplex: 600 a month

1 bed 1 bath apartment: 799 a month

Another issue is that this property is not in the best of neighborhoods (house across street is boarded up, poor school system). C neighborhood at best. Not sure if this is an ideal scenario for first time landlord to take on with the potential tenants the property would attract. 

Sorry, long winded post, but please let me know if you guys have any thoughts about this deal. 

Thanks!