All Forum Posts by: Orlando Goodon

Wow!! Alot of various opinions of PAssaic! Realtor said most people own, site says it's mostly renters, but when I look for apartments, I was not finding much. hmmm

https://www.niche.com/places-to-live/passaic-passaic-nj/

They gave Passaic a D- and my area an A- and in top 5000 best places to live. Maybe that is why I keep seeing places I don't want to live in. I'm spoiled. lol. 

Here is a street view. Not amazing, but looks like a nice tree lined, safe middle class area. Unlike OTHER parts of PAssaic

https://goo.gl/maps/EbF3STiRQM...

 Thanks for the feedback. Your comments matched what I observed in terms of the impression I got. The house seems to be on a nice block, but 4 blocks away it looks like an OK Brooklyn type area. Low income for sure. The house is in a hasidic area so middle class if I were to guess. Its dense, so income levels vary.

So is it like building a $800k house in a nice $300k area? Yes, the house might be well worth that, but people with that money are looking in areas with other options in the 800k range. People looking in $300k area, cant afford the $800k house. So while $3000 is a good value for two entire floors nicely renovated with yard and garage, it's in the wrong location?

So for my case, the biggest value would be to the home owner, not the renter. Meaning, for me to live rent free with two entire floors to myself and garage, with good commute to NYC, it's a superb opportunity, but if I try to rent that large space, I'd not get much money relative to space offered.

I'm trying to understand the logic of all these people who list duplexes triplexus quads and simply say multi-family without telling you how many units. It's nowhere in the description and detailed information.

first thing anybody looking for multi family is going to want to know is how many units. Without knowing that the price is useless to me. A $600,000 duplex is an awful deal for me but if it's a quad that's something that could work.

I can't imagine these sellers don't understand that. How did you end up with a multi-family in the first place without understanding something so basic? So I wonder if this is not by intention. Is it like a sales tactic to get you to inquire more? I don't know, that's all I got.

 Passaic NJ

 It's north Jersey.

OK, I re-evaluated this deal and it's not as good as I think:

A few houses sold for $100k less with simular potential, minus the 2 floor unit
2 floor unite might be hard to rent there; locals don't really rent and outsiders might not want to live there (heavily Hasidic area)
Not a lot of rentals there. Locals like to own, not rent (large family community)

So might be tough renting in general, then at the prices they are worth, even tougher. Most importantly it's not worth getting too excited. There are cheaper deals out there that will give the cash flow I want without the complications.

Hasidic

I just went to see what a nice 3 family looked like, then got blown away by few things:

-It's beautiful 

-First unit is probably 4-5 bedrooms and two FULL floors(has large finished basement)

-I thought the garage was another house! (2 car with large loft upstairs)

I'm thinking first unit is gold mine? 4-5 bedroom with 2 floors? $2900/mo? $3000? That leaves only $1000 more needed for mortgage and NO unit is less than $1800..By my math you talking a $6400/month gross property? Only it's empty, so you on the hook for $4100 for up to 3 months, seeking quality tenants. Which is fine, but I'd rather not.

So IS this really a net $2500 property?

The first unit is what I'm curious about. I could not find more than 3-4 rentals in the area (red flag?). Best I found was $2600 for a single floor 3 bedroom. So what could I get for something that is off the scale? To I price it as if I'm renting a full house then subtract some since you have units above you? I have never seen 2 full floors in one unit with 4-5 bedrooms. I do worry that it's TOO good. Does anybody that $3000/mo to spend on rent, want to rent and not own AND to live in a regular neighborhood? I mean, a large family with kids and two professional adults should be able to swing $1500 each and would LOVE putting kits in massive finished basement?

At minimum it's $2500/month but it's twice the size of a $2500 unit.

 Actually my credit was low for NOT taking on ANY debt. LOL. I lived mostly debt free most of my life. Banks THRIVE on debt, so I'm the enemy. LOL. I went 10 years with no credit cars or loans. I had 2 small collections from just not being responsible with bills. We talking falling behind on phone bill or something. Maybe $500 total. Then when I last had a card, I maxed out one month with plans of paying off in a couple months. I actually DID that, then lost my job right after, then dug right back into card. Stayed out of gainful employment long enough for the card to swallow me. Then it charged off. That was 2013 however, yet in 2018 I still had 580.

Guess it makes sense. Hardly any credit experience, but what little could be found had 3 bad marks. lol