All Forum Posts by: Steven Primiano

Hey everyone.  After years of studying and preparing, I'm ready to make an offer on my first investment property.  I've run the numbers and the deal looks good, but could really use a second look from someone more experienced.

Purchase price: $220,000, putting 20% down

Principal and interest: $900/month

Property Taxes: $4,500 ($355/month)

Budgeted expenses to be paid:

$350/month to cover cap ex (5%), vacancy (7%), and maintenance/repairs (5%)

$100/month insurance

$100/month to cover water, sewer, and garbage

Estimated rent $2,000/month

I calculate positive cash flow of $230/month

My questions are:

Have I budgeted enough for cap ex, vacancy, and maintenance?

The house was a rental.  What evidence can I ask the owner to show in terms of income and expenses?

The house was vacant, but the owner just allowed a "friend" to occupy it this past month.  There are 3 people living there with cats and, safe to say, no lease and rent-free.  What precautions should I take when dealing with the current tenants?

Thanks in advance for the advice!

Steve

what areas are you looking in NJ?

hey @Neil Patel PM me and we can talk further

Hey @Omar Ismael, sorry to offend, but truth is that Irvington has relatively higher crime rates.  Though little but of ignorance on my part as I've only been through there a handful of times.

@Judy Parker so far I have the seller down to 215k with 11k taxes, but I know I have some more wiggle room with him.  The price seems in line with comps.  Gross rent is 3400/month.

Irvington

Hi all,

I'm starting my wholesaling business and, of course, am already coming across a tough situation to judge.  One of the owners I contacted doesn't want to sell his primary residence, but has a triplex in another town that is fully rented.  Assuming he was truthful when telling me the numbers, it would cash flow very well.  Problem is that it is in a D neighborhood.  Bad area, lots of crime.  So how do you handle this?  I can get proof of rental history and expenses from him, but how likely am I to be able to find an investor who will want a rental in a pretty bad area.  Is it worth pursuing and being up front about the issues with him or is this not worth my time?  If I move forward with him, what advice do you have so that I don't get stuck with a house I wouldn't want to visit?

Thanks,

Steve

Welcome Geet.  Great attitude!  Best of luck.

welcome Kristen. Just starting out myself in Monmouth. Studying for my RE license and starting my direct mail marketing. Lots of work but exciting. There is a meetup in Red Bank once a month and another in Princeton. I haven't made it to the Red Bank meeting yet but Princeton is always worthwhile. Lots of good resources on the site and good networking at the meetings. Good luck. Feel free to PM me if you want more info on the meetings. 

Hi Michelle,

Message me as I have a great attorney who does a lot of work in the Trenton area.

Steve

Agree on PC Richard. FYI I took the design from the wholesale place in Perth Amboy to Home Depot and copied it line for line. HD was around 15% more expensive