All Forum Posts by: Account Closed

No disrespect meant whatsoever and I totally see what you’re saying but I’m new and also here seeking wisdom. I have no family or friends with any experience or knowledge in this field. I’m reading books and asking questions as well. Where/how would you recommend  getting ideas for making such an investment for an amateur? I’m genuinely asking because I’m in the same boat. Thanks. 

Before you give up on it can you come up with with a purchase price that makes sense, that would give you the cash on cash you want and then make an offer? 

Financial independence is like that last really good week of spending money on anything and everything you’ve ever wanted in life before the feds smash through your door to take down your Ponzi scheme. 

I just did one a couple weeks ago. We took down 26’ of load bearing wall and replaced it with two 12” X 4” LVL beams, one 12’ long the other 14’ joined on top of an LVL post. I’m an ironworker so I deal with structures whether it be buildings/bridges day to day. For me to see where and what the loads are is easy. Yet I’m not an engineer so there’s no math when I do it. With experience and erring on the side of safety I have no problems getting the job done. 

If you’re unsure or nervous I’d hire a good contractor and an engineer if he thinks necessary. An engineer, if he’s any good, can help you use the most efficient and cost effective material to achieve the goal. A lot engineers, from my experience, completely over kill just to be safe. You may want an alternative to a huge exposed beam.  Be clear about what you expect it to look like when complete.  

Hey, I’m new here. I’m 38 and live in North NJ and currently own a 2fam in which I live in one unit. I bought it on a whim 10 years ago and have been relentlessly paying down my mortgage... 6 years left. I work as an ironworker in NYC by day. In the past 20 years I’ve never missed more than 1 week of work in any given year and have made no less than 40 hours a week every week. I’ve got a decent savings now of about 200K. 

About a month ago I busted my ankle, four fractures and ligament damage. Sitting home this past month, which I’m not used to, I’ve been searching investment houses near by. I’ve decided to find multi family homes and come up with an offer based on 8%> of my total out of pocket. I’m trying to use what I believe to be a cash on cash formula. I’m just taking every expense minus the income (annually) and dividing it by the total out of pocket money I have to come up with. 

I found a 2 family house in town that just came on to the market. It’s kinda beat up and needs some work. I’m pretty handy, I’ve done most of the plumbing, electrical, carpentry in my own house among others but I still plan on outsourcing most of this work and I’ve placed a number on everything that needs to be done. Here are my numbers: 

325K asking

2 fam 3br 2ba

40K renovation costs

15K closing

PITI:

275K offer (I want to buy it for this or less)

55K down / 20%

4% interest

10,500 tax 

1500 insurance

Payment: 2100 / month

Rent: 3000 / month

NOI: 900 X 11 = 9900 (1 month vacancy)

TOP: 110K

COC: 9% (9,900 / 110,000)

I’ve over estimated the tax, insurance, closing and repairs. I’ve underestimated what I should get in rent. I feel like 275K is my max offer based on what I’d like to make. I’m not much of a haggler so not sure if I should come in for less first. 

Do you guys think I’ve analyzed this properly? Thanks a lot! -Ray

I’m new here and just curious why a 10 year mortgage and not a 30. Are you looking to pay it off soon or is that all you can get with this?