All Forum Posts by: Nathan J.

Hi all,

Seems like there are a few turnkey providers that look to sell to out-of-state investors. What is a fair margin you can expect to pay for this service?

These providers use local knowledge and networks to find bargain properties, then renovate & find a tenant before selling. That is a service that folks out-of-state should be expected to pay for. The question is how much is fair versus getting fleeced?

Thanks in advance

Hi all,

It seems some property managers look to charge one months rent to find a tenant, on top of the 10% of rent collected. Is that normal? It seems that a property manager should be incentivised to keep tenants long term, rather than get paid for regular turnover?

Hi all,

what are some good buy and hold areas you'd suggest in NJ. Either SFH or MFH. Would you consider East Brunswick, Trenton, or any other areas. Criteria are good cashflow but are up and coming growth areas also (guess everybody wants that!)

Thanks in advance

Thanks everyone, great advice. @Michael Blank great blog!

Would anyone have advice on finding apartment deals say on the 12 units and bigger side? Given that NY is such a tough market because of expenses I am also considering Philadelphia, PA & Indianapolis, IN & Trenton, NJ. I would be open to other markets like Jacksonville, FL and Columbus, OH also.

One advantage i do see with single families and duplexes, tris and quands is that they are more liquid. If you wanted to liquidate a portion of your portfolio after say 5 years it seems you can do that much more easily & quickly by selling a couple of your houses, rather than selling a whole apartment building. I think with single families you could get better appreciation prospects as well if you choose the right markets. But i guess that all comes back to clearly defining your goals and sticking with the appropriate strategy for your goals.

@Jonathan Twombly - thanks for the advice. I am curious though, what made you decide to stay away from Albany after all your research? Also curious given that you live in Brookyn do you use a property manager?

I have been looking for buy and hold multifamily unites (2-7 unit range) in saugerties, kingston, and just recently Albany. I found mostly that its tough to find an area that is up and coming. Many areas have been in the doldrums for a while without a turnaround visible. However, i think Albany is better than most of the hudson valley as it has biotech, the government and some universities there. I don't know Rochester but it seems to get all the focus.
I split time between NYC and the hudson valley so am trying to find an area that is not too far away from me. I also havent found any good property management companies for smaller multifamily units so would love any recommendations if people have any

Thanks Nick B. Thanks Dawn - that's a useful collection of posts. I will delve into those.

Hi all,

Lets say (hypothetically) you had 200k in cash to start off, and you are a newbie investor. Lets say your goal is to fully live off the passive income (i.e. not have to do the day job). Lets also say you aren't that interested in being a landlord. What strategy would you advise to get there as quickly as possible?

a) would you use that cash to buy a series of 2,3,4 multi unit properties
b) would you buy one bigger apartment building
c) would you go out of state? Bear in mind i have been looking in NY state at places like Albany. But folks on BP seem to get much better numbers in other states midwest and south.
d) take a different approach altogether

Would love to hear how you'd approach it?
Thanks in advance!

I am just getting into this game so certainly not an expert. My threshold is $170 per door and a 12% return. I've only come across a few of those deals and was beaten to the punch.  I also assume 9-10% of revenue goes towards maintenance and 6% vacancy rate. I will adjust the maintenance number down if it is a new/refurbished property.  I know that on one of the earlier podcasts (think it was 78) an investor was getting $400 per door which i thought was a fantastic number that i have not been anywhere near.

Thanks. I agree that capital appreciation seems really limited with multifamily buildings. Unless rental income increases then when you come to sell it will be tough to command a higher price than you've paid.