All Forum Posts by: Richard Wilson

Quick question for everyone in this thread, are we taking into consideration "bonus rooms" that some homes offer? Even though, not technically legal, basements and attics are still being rented across Jersey and can bring in an additional $800-900 in income. I know the 1% rule is quick and dirty, that's why I was curious if you had spoken with a realtor who knows North Jersey well, as those "bonus rooms" are not listed on MLS.

Matthew, thanks for responding brother.  Yes, I am actually looking predominantly in the northern Jersey area.

I actually have some questions about the 203k loan option. I am not specifically looking for my first investment to be owner occupied, but my family is expanding, and house hacking would be an excellent option for lowering my expenses as a first time home buyer.  It seems like this may be your specialty - anyway to gain some insight? Thank you.

@Jaysen Medhurst I took my first crack at analyzing a deal ... I went with turn key option, but next deal will involve rehab.  I was hoping you could take a look and see if you would have done the numbers any differently.  I also concluded that this property does not meet the min $100/unit min cash flow. Hopefully, I can get into doing two or three per day of these.

If you have any advice, as to how to clean up these numbers or produce some quicker.  I came across the video of 2% and 50% rule.  It actually corresponded with what my numbers produced, based upon purchase price and projected rent income. Do you utilize that method as a quick and dirty approach?

Thank you for taking the time out to respond. I would prefer to avoid the PMI, so I don't mind dropping a heavier down but with the 203k loan, it's $35k max right? I feel like I'm misunderstanding something about the loan ...

Unfortunately, the good parts of Newark are out of reach of my the budget I’ve set for my initial dive. I’m hoping to find something $180-250ish, depending on rehab needed. I don’t think I could manage a full overhaul with zero experience. That’s why I’ve been looking slightly further out, like Irvington and East Orange. I’ve recently saw a few distressed properties sub $100k fly off NJMLS. 

I appreciate any and all information. Thanks again for responding!

That's sharp. I appreciate that key right there. These are the type of jewels that rookies appreciate. 

Congrats again on the successful turnaround. Please post what comes next.

I can't wait to my first project, awesome story!! Question, did you project the ARV to get up to $400,000 or was the a nice surprise? Any background info to how worked your way to that number, would be greatly appreciated.

I appreciate all the advice brother.  I am going to exercise these tools, and give it a go. I'll post in here and also tag you - it would be awesome if you could review/critique.  Thank you again!

 Jaysen, much appreciated .... Sound advice here. 

Question, how much of a heavier down payment do you think I would be facing; 20-30%? Greater even?

So I am looking for properties in the Essex County area, specifically East Orange, Newark, and Irvington. For a first home project, looking for a 2-family home, roughly around 2,000 sq ft., with some work needed. I am willing to open up the rehab budget up to $70k, as long as the numbers make sense and add value to the property, but again, with my credit, I am not sure I would even qualify for a rehab loan, and I am not sure I'd be willing to come out of pocket. I liked the fact that the bank holds the funds in escrow, and will only disburse funds as work is due, and they follow up on the project themselves.

I have to sharpen my pencil with analyzing deals. I recently made a few attempts, but I don't know how much water and electric coast. I have no idea how to estimate a rehab project, or project the ARV. I am lost in that aspect of the deal.

Thank you again for the response!! 

I have lurked BP for a few years, posted a few times over the last two years, always with some form of trepidation of entering the real estate market .... I really do believe now is the time, but ****, I don't even know if I'd qualify for a mortgage.  Here's my story, I would GREATLY (and that's an understatement) appreciate any advice you have. I was in finance, I do understand #'s but how I handle it wouldn't reflect that ... I am risk adverse, from a monetary perspective, which explains why I am now a Train Operator working for the city lol.

I have no large debts looming, the wife and I maybe have $4k combined across a few CC's.  

Salary: $67k/annual but you can't escape OT, and I was at $90k last year

I was left an estate, sold it, invested it conservatively - I utilize gains to help an aging family. Last year I partnered with a banking buddy of mine to purchase a home in CT, cash for $175k (I finance it, he does all the work - we split profits), but after a more critical inspection, he found water damage that ultimately led to the deal falling through. Like, an idiot, I had already had securities liquidated for the deal, so they've been in a money market since early last year.

Credit Score - 680 ... I have money, but still manage to pay a bill one day late.  I am in idiot, don't say I didn't warn you.

The deal from early 2019, was going to be a fix and flip, but I know now, that isn't the route I want to go. I want to own units, and lots of them. I reside in NYC, but want to invest in Jersey, where I can still find multi-family homes for sub $200k. My question is, I've heard working for the MTA is a big plus, but how bad will my credit score impede on me obtaining a mortgage? I want to get into the BRRR method ... If a mortgage broker/lender reviews my finances, will they grant me a mortgage or attempt to force me to collateralize my estate investment in order to secure a loan? That is something I would never do ... I would simply reinvest my funds back with my money manager at that point.

I feel like now is the time. I am also looking into moving into one of my investment properties, and renting out the other units.  As a first time home buyer, are there any lenders like Fanny Mae that host programs that may boost my potential as a qualified buyer?

I have so many questions.  Please .... any advice. Thank you for reading, if you made it this far.

Brother, I see that you were fortunate to receive full funding for purchase and rehab, but what was the loan term for the rehab? I see that rehab loans are usually 12-36 months, so I am not sure how that could possibly be covered by rent, and also cover the mortgage. I need to do some HW on financing a rehab.  

Thank you!