All Forum Posts by: Ryan Alexander

@Diana Tian thank you for your response. For the building as-is, the taxes are $6,600 per year (pulled from

http://tax1.co.monmouth.nj.us), water / sewer is included at ~$2,500 per year, gas and electric are separate, property insurance is at $6,500 a year and repairs are at $75 per unit per month. On the revenue front, I'm assuming $2k for each of the three bedrooms and $1,600 for the two bedroom. (I do own another property of similar size close to this property so am fairly confident in my assumptions.) The tenants are currently paying (month-to-month) $1,950 for the three bedrooms and $1,400 for the two bedroom.

@Gregory DeRosso thank you for the post. I agree with you that vacancy and cap ex are too low and have bumped those. Takes the CoC return from 6.6% to 6.0%. Yes, I'm in contract at $755k. My hope is that the $165k is the upper limit on the renovations.

Thank you!

@David Lichtenstadter this is not new construction. The three bedrooms are traditional three bedrooms (not railroad-style) and are quite spacious.

Three-family property located in The Heights section of Jersey City, NJ. The first floor has two bedrooms, one bathroom and includes the rear yard. Second and third floors have three bedrooms, one bathroom and each has a balcony. The property includes three parking spaces and the building is presently full. There's an opportunity to upgrade the building (facade, common areas, convert first floor to a three bedroom from a two bedroom), which is why I included / attached two reports. While I believe that this is a pretty solid deal, I realize it's not a home run. BUT, as a buy-and-hold, long-term investor, it does work. Should I close the deal or cancel the contract? Really appreciate any thoughts you can share!

https://drive.google.com/open?id=19tsvXIl1VYww7iV5...

https://drive.google.com/open?id=1zxwM8svabfA-T61L...

I am evaluating the purchase of a six-family in Jersey City, which obviously falls under rent control. The rents are meaningfully below market. Does anybody have experience successfully converting a rent control building in Jersey City to condos? I know this process requires ~3 years and that the current tenants need to be offered an opportunity to purchase the units, but I would be willing to go through the process and expense if at the end of the three years I have a building that has six free-market units (my assumption is that none of the current tenants would purchase units). I would then plan to hold the building as a six condo rental building long term. Thank you!