All Forum Posts by: Theodore Renka

Ben, this was a long time ago but I remember the broad strokes.  I had lines of credit from local credit unions that I could write checks off of.  I also had credit cards that had a 'direct deposit' option meaning I could take available credit and deposit it into my checking account.  I had to pay a 3% fee upfront and had 0% for about a year.  I also had my own money I had saved and money from my 9-5 paychecks as they came in.  I hope this helps.   

I use Foremost for my rentals

One of my properties has a good size extra lot that the tenants don't use.  I'm looking for ideas to turn it into a money maker.  I was thinking along the lines of vehicle or equipment storage?  Looking for advice on legality, liability, marketing, rent amounts.  If anyone has any experience in this any knowledge would be appreciated.  Thanks!!!

@Robin Boyer the most important thing is to get a deal going.  Planning only goes so far.  

thanks! Yes I do appeal the taxes on most of my properties.  Unless of course the assessment seems about right or low them I leave it alone.  The best way to do it is find a law firm that specializes in appealing property taxes and they do it all for you and you just pay a fee. You can do it yourself but it's ALOT of work and typically the fee isn't much.  

sky is the limit with all those resources 

@Nolan M. thanks.  Yeah that's how it is sometimes with different loan options.  I did some others where I got all my money out and then some.  Stay tuned! Lol- that's real estate I guess, got to roll with the punches 

holding and closing costs were approximately $5k.  The septic was about $25k.  The rest was both inside and outside rehab.  It took about 4 months.  Thanks!

The taxes were about $5500 when I bought the house.  I appealed and got them down to $4500.  

Its been a while since I shared one of my deals on Bigger Pockets but the other day I decided I had to, and here's why.  I was on you tube and I searched sfr investing and started watching some videos (always looking to learn more), and half of the stuff that was on there was a bunch of bad information.  One guy was talking about all the 'cash flow' you could get by purchasing a home in his area for $265k and renting for $1400/mo.  For you newbies reading this, even if you put 20% down the payment would be over $1000/mo.  Your $1400 rent turns into $1120 after management, repairs, and vacancies.  that leaves you virtually no cash flow before taxes and insurance!!!  I thought to myself, imagine if a new investor took these peoples advice.  So I decided to start sharing some of my deals to show people who need it what a real deal looks like.  So here it goes.  

I was having a tough time finding a deal as the New Jersey market is pretty hot.  I was able to get this one because it had a cesspool which are illegal now so must be entirely replaced with a new septic system which is quite a job.  I saw one day the price dropped a lot to around $58500 (i think when the bank that owned it found out it had a cesspool), and decided to go look at it.  It needed a complete rehab but I thought it could work.  I offered $59k and got it under contract.  I got an estimate for a new septic and found that there wasn't enough room for a traditional septic (so we thought) and needed a special treatment system which is very expensive.  I went back to the bank and got another $10k off when we told them that.  Subsequently I discovered a side lot that I was told belonged to a neighbor actually belonged to me! Score!  So I was able to do a somewhat traditional system with just adding a pump to put the waste onto that lot.  Here are some pics.

Not sure why some of the pics uploaded sideways, hopefully it wont post like that!  

Its was listed as a 3br 1 1/2 bath.  I turned it into a 3br 1 bath as the upstairs bath was not permitted.  Purchase price was $49k.  After total rehab,a $25k septic system, and all holding and closing costs, I was into it for $125k.  I took out a $110k loan on it after 6 mo seasoning.  I have it rented for $1695.  After management, vacancies, and repairs that is $1356.  My mortgage payment including tax, and insurance is $1070.  I was able to get the taxes lowered $1000 a year by doing an appeal but that is not reflected in my payment yet.  That gives $286 monthly cash flow which is $3432 a year.  Plus the $1000 tax deduction is $4432.  Hoa on this house is $500 a year as it is a lake community.  That makes annual cash flow $3932.  I left $15k of my own money in the project so that gives a 26% cash on cash return and I estimate the property to be worth $175k, so I have about $50k in equity.  I'll take it!  Here are some after pics.

I know what your thinking, and the answer is yes New Jersey does have trees!!! lol

I hope this post is enjoyed and someone learns something REAL from this.  Feel free to ask any questions, Ill answer the best I can.  Thanks!!!