All Forum Posts by: Michael Krassos

Hello Ben, et all, one thing I've been struggling with is determine what a good Cap Rate is to use in my markets. Who would know this or how should it be determined? FYI I am looking at 2-4 unit properties in Northern NJ.

Hello Alex and welcome. I am close to you in Dumont. Let me know if you ever want to grab a coffee.

Hi all, can anybody please send an example lease agreement (preferably in editable format) that I can use that protects my interests but abides by NJ law. Much appreciated. Also please do include any sections you have added to the standard NJ POA based on your experiences as a landlord. Much appreciated. You can send directly to [email protected].

Sorry for the confusion, the 15% is reserves only and does not include the fixed expenses like taxes, insurance. Repairs to get rentable were not factored in expenses and waiting on quotes from contractors. Will let you all know once I receive.

Hi all, trying to decide if I'm just getting cold feet or jumping the gun as a newbie!!

I have a counter-offer on the table for $205k. Please review the following 2-family home in NJ.

Financials

• Purchase Price 205k
• Rental income 2.4k -> Income: 28.8k
• Expenses: 14.2k (Best Case at 34.5% of Income, Worst Case at 49.5%)
  
  • Fixed (Taxes, Insurance,Utilities): 9.9k
  • Variable/Reserves (15% of income) (Maintenance, Vacancies, Capex): 4.3k

I calculate Worst Case Cap Rate: 7.09, and Best Case: 9.2%

Mortgage:

• 25% Down:51.2k
• 4.5% on 30yr fixed
• Mortgage Amount: 154k
• Closing Costs: 11.8k

Total out of pocket to purchase: $63k

I calculate Worst Case Cash on Cash: 8.2% and Best Case: 15.1%

Worst Case Cash Flow: $432.97, Best Case: $792.97 (Assuming expenses remain below the 15% of income

Comps

2-Family comp homes have sold for 160k-220k in last year, and listing price was 235k.

Repairs

• Required
  • Needs windows and door in basement
  • Work to get dryer working
  • 2nd unit needs interior paint
  • May need to break concrete around house to improve water flow away from foundation
• Optional
  • Home will need some work to convert a room in each unit to an official 2-bedroom as no closet and have to walk through one room to access other. Trying to decide if worth doing.

Other

• One unit renter until May14 to section 8, 2nd unit vacant

Hello all, can you recommend a good Inspector in Northern NJ. Need one that's willing to climb on roof, do a thorough job. Thanks in advance.

Hello all, hoping to become a landlord soon in NJ and want to manage my own properties. Can any experienced landlords in NJ ( who know the NJ laws) recommend best practice steps to take, and are there a free application form I can download. Additionally, where do I place their deposit, do I have to setup an escrow account, how do I do that? What else do I need to consider? As you can tell I have no idea !!

Sorry, to clarify and elaborate, I am based in Northern NJ, going to setup LLC in WI. Need an attorney that can review my Operating Agreement toward the LLC setup in WI, great if they are in NJ but not necessary. Don't need the attorney to submit LLC application as I can do that online for WI.

Can anyone recommend an attorney with Real Estate and LLC (Operating Agreement) setup experience. Operating in Wisconsin would be best but not necessary.

Don't waste your time or money as these courses are not needed. There are so many great resources available here in BP, Podcasts, and books for free in your local library. Plan to spend a good amount of time educating yourself and developing your strategy. Do you really need a guru over selling, hyping? I suggest to read, research then post your questions to BP. This is a great community always willing to help if you put in some effort.