All Forum Posts by: Patrick Tiedeken

Hi Katie! Thanks for helping me clarify. My two questions are these:

1. Does anyone have experience investing in areas like I described? If so, what should I be considering (high vacancy rate, more headaches, high maintenance costs because of wear and tear, higher tenant turnover)? 

2. Given the area, does anyone have anything to add or anything I didn't account for in my analysis? 

I live in New Jersey and am a new investor (getting into wholesaling to generate cash and then doing a buy and hold strategy). I am considering investing in an area that is a C minus (that is my estimate of the grading) - Clementon NJ. I am looking for thoughts from experienced investors (based on my thoughts below).

I drove by the property - the units look well enough taken care of. The area isn't awful but is known for some crime and drug activity, and is a lower income working class neighborhood. It isn't a "war zone", but there is crime and the schools aren't well regarded. The population is holding steady over the past 10 years - no growth but no contraction.

Current landlord:

-Bought the property for $40K in 2016 and it and others around it have significantly appreciated since

-Claims he is selling because he is moving and getting older

-Property is occupied on a month to month and he claims they would consider a long-term lease. Has tenants in the property who he claims are "great" and "always pay on time"

Note: I have not yet toured the property or asked for proof of on time payment from the current tenants 

My analysis on the deal is this:

Target purchase price: $105K (current investor is asking 125K which is too high based on comps)

Current monthly rent: $1,450

Expenses: which includes mortgage, taxes, HOA, and 5% for repairs, 5% vacancy, 5% capex (HOA does cover outside)

Monthly return: $324/month

I didn’t finish a sentence above...

...given the market I am wondering if I need someone who can be committed to finding properties and sending them To me quickly, and isn’t going to take time off on nights, weekends, etc. 

Hello! I am a beginner on my journey in southern NJ. I have been on the podcast, reading books, etc. and feel like I’m getting close to ready to purchase my first property.

This post is about assembling a team, specifically a real estate agent... I have a buddy who is a dad, has a full time job and is a realtor. Needless to say he is a busy man and does RE for extra cash and is involved in 3-4 transactions per year. I was planning to use him to help me find the ideal property, but given the market 

My question is this: does anyone have experience using a RE who also has a full time job? Or should I go to a property management company that I plan to use who also has full time agents? Thoughts? Thanks all!