All Forum Posts by: Ryan Cheung

I am experiencing the exact same thing. I think we just have to be patient, for the market is really hot right now. Hopefully things will settle down once the summer is over and some deals will start coming up. Good luck to you!

@John Errico thanks for the reply. I agree with you and @Dan Rivera that I should be conservative and use $1,300 as my rental income per unit. 

However, when I lower my rental income from $1,500 per unit to $1,300, my cash flow significantly drops to only about $120 per month. This is with my PITI, Vacancy (8%), Repairs (5%), CapEx (5%), and Property Mangement (10%) expenses already factored in. However, if I decide not to use a 203k loan and get a FHA, my cash flow increases to about $300 per month. 

The property is already in pretty good shape, and was recently renovated. It is already in a liveable condition. Would you recommend that I forgo the 203k loan in order to increase my cashflow, or use the loan to improve the property and potentially increase rents in the future, while dropping my current cash flow? I would be willing to learn and do some of the renovations myself in order to save costs. 

Also, keep in mind that raising rents may be an issue, so even if I do renovate, I might still have an issue with that.

There is also a basement in the building, which I have not yet seen. If it is large enough, would you recommend that I create another unit? Has anyone had experience with doing this in Union City? What is the process like?

@James LaPosta I did in fact get personally pre approved from a lender, and that gave me a budget for how much home I could purchase. I then used that budget to look for multifamily homes within my price range. I was able to find the lender by asking my agent for a referral. I am continuing to look in the area as well. Raising rents may be an issue from what I have been hearing, so please keep that in mind. Good luck!

@John Errico thanks for your incredibly detailed response! Each unit is actually 2 bedrooms and the tenants are currently being charged $1200 per month for rent. Do you think raising it up to $1500 is reasonable? The units are pretty small, probably around 600 square feet per unit.

I have included 8% vacancy, 5% repairs, 10% cap ex and 10% property management in my analysis, which I think may be too much, but better to over estimate than to under estimate! The units have actually been recently updated, and most of the work will be cosmetic. I am unsure as to how much I will need to actually renovate them, but I am also considering adding coin operated laundry machines in the basement for additional income.

I am a bit concerned about the rent control. From my understanding, if I am living there, I can raise rents, but what will happen when I leave? Will I be able to maintain the rent at. $1500 or will I need to reduce them?

Hello,

I am currently looking to invest in my first multi family apartment. I found a fourplex in Union City, NJ. Each unit has 2 bedroom and 1 bathroom. I would love to get some feedback on the deal. I am going to finance this property with a 203K loan.

Price and Renovations: $420,000+$25,000=$445,000

Downpayment (3.5%) - $15,575

Mortgage with PMI: $2,266

Rent: $6,000 per month for all 4 units. However, I will be receiving $4,500 since I will be living in one of the units.

Taxes: $14,000/12=$1,166

Expenses with Vacancy, Repairs, CapEX, Property Management Included: $2,110

Cash on Cash Return: 19.92%

Cap Rate: 7.69%

Cash Flow: $424.60 per month

*These numbers are based on the $6,000 per month rent*

Could anyone please help me evaluate this deal and help me confirm if my numbers look correct? Any advice or guidance would be greatly appreciated. Thank you!

@Olga Roginkin Hi Olga, I am looking for 2-4 family homes in the Bergen or Hudson county area. However, since I am looking to live in the unit while renting out the others, I would like to avoid the lower income areas. 

Hello,

I am looking to house hack my first multi family property in Northern New Jersey (Primarily Bergen and Hudson county). I am having a difficult time finding properties within my price range and in an area that I would like to live while providing cash flow. If there are any realtors in the northern New Jersey area, I would love to get in touch with you so that we could work together. Thanks!

Hello! My name is Ryan and I am looking to start my real estate investing career! I do not currently own any properties but I am looking to house hack a multi family unit near my area in northern New Jersey as my first investment. However, the price of housing is very expensive in the fort lee/west New York area. Would buying a more expensive property with a FHA loan be a good idea? Or would looking in a cheaper and less desirable area be a better idea? Any recommendations or advice would be greatly appreciated! Thanks!