All Forum Posts by: Patrick Q.

@Michael Baker

Hi Michael,

I have decided that a duplex is the best move.

I have a max purchase price limit that I wont go above or I won’t have enough money to finish the process.

There are duplexes available at or under my max number in my area.

Basically I have budgeted to hold for 2 months while we renovate.

10% down is what I am planning to put down.

Then I have enough left for reserves, closing and all the other costs associated with closing the deal.

It would have a low cash flow if I treated it strictly as a rental (at least at the beginning).

I have some plans to increase the income on the property that will allow me to cash flow better within a year of buying it.

@Vasilii Baban

I am about to buy a duplex myself and house hack.

I am having the same issue as you in terms of the numbers not cash flowing.

I came up with a couple of ideas to increase cash flow that help my numbers improve.

I am only looking at duplexes that have parking (not all the duplexes in my area have parking). This way I can charge for the parking spots if the tenants want them.

I am also planning on renting space in the cellar for storage. I will assemble cages that the tenants can put locks on if they would like to pay for additional storage. You could tactfully find out if your potential tenants have cars when interviewing them.

Also if the 2nd unit is not submetered I will install submetering equipment so that I can split at least the electrical portion of the utilities. I am an electrician and can set this up myself. But it is not that expensive to do.

I am also leaning towards conventional financing so that the initial fees are lower and I can buy my way out of the mortgage insurance if any capital comes my way.

The PMI dropping off after a year (if I can make that happen) would improve the numbers.

hi @Cap Singh

Would one be permitted to live in the building while all of this is happening?

I am assuming yes.

But I guess it is worth asking.

Happy New Year All,

I am looking to get involved in a REIA that has a lot of members operating in the Jersey City NJ area.

Does anybody have any suggestions?

I have the same goal as @Eloise Garcia

Multifamily property in Jersey City for my wife and I and then onward to do more acquisitions. 

@Lamont Chen

Thank you.

I am staying at least a block away from the flood zones.

I am keeping a reserve for miscellaneous stuff such as the items you mentioned.

@RJ Staats

I am interested if there is anything happening.

I am in Jersey City

@Nico Doss

Thanks Nico.

Trying to figure out at the moment if garbage and recycling is covered in the property taxes.

@Ryan Copeland

Well done Ryan.

Will be following in your footsteps in the first half of this year.

Hello All,

I am planning on buying a multifamily owner occupied property shortly in Jersey City NJ. 

I am trying to compile a full list of costs/allowances that I have to account for on the front end when doing my deal analysis. 

I am currently including the following;

-Mortgage.

-Closing costs.

-Vacancy.

-Cap Ex.

-Maintenance/repairs.

-Water.

-Management fees (should I choose to use management).

-Property insurance.

Would appreciate any help anybody could offer in identifying any items that I may have missed.

Cheers,

P. Quaid