All Forum Posts by: Yonia B.

@Bonnie Low we did see the property with our contractor.  The property is owned by a nice old man who can no longer take care of the property so he is selling. 

@Wendell Fong yes,  rents and the taxes have been verified.

@Adriel Hsu thank you, I did not even think to factor in pest control or snow removal.  There is no grass so no worries there.  We will be doing our own managing of the property. This building is in a class C area, so what percentage should we be using for repairs on a property this old?   We have it at 10% now.  Should it be more?

@Wendell Fong It is a multi family property that has 6 one bedroom apartments.  And yes, you are correct I believe the correct property taxes are around $9000 but bc of the current disastrous economy we feel the property taxes will be raised significantly that's why we increased it in our numbers anticipating this to happen so we budget for that.

Definitely, all the apartments needs cosmetic work and to be updated.  This building was built in the early 1900-1920.  I did go thru it with my contractor and roof will need to be replaced as well.  no HVAC, electric and gas all looks good.   I will go to zoning this week to verify that it is a legal 6 units; so thanks @Account Closed for pointing that out.  They are all one bedrooms.   I just want to know if I am not seeing something that others can point out before I am out of attorney review I want to be sure I know what I am up against.

My partner and I have been reading a lot recently about how hard it is to buy a property in New Jersey that produces positive cash flow.

We made an offer that has been accepted on a property in Perth Amboy NJ and so this sentiment has us nervous. After running the analysis we see this property is significantly cash flow positive but we can't help but feel that we might be missing something. The numbers are as follows...

Accepted Price: $275K

Units: 6

Rent per unit: $800 ($4,800 per month total)

Vacancy: $480 (10% of Gross rents); Maintenance and Repairs: $480 (10% of Gross Rents); CAPEX: $350; Taxes: $917; Insurance: $833

The tenants are paying for utilities separately so there's nothing budgeted for that. not sure what to expect for common area expenses .

Mortgage: $898

Total monthly cash flow of $842.

Would appreciate any insight on what we might be missing???

I'm not complaining, like I said, if the seller got a higher offer than the one I made, great for them.That full asking price was my walk away price and I was not going to get into a bidding war because anything over that amount would put me in a negative cash flow. I was just surprised that the listing agent did not write up a contract or some form of paperwork of my offer; she did not have me sign anything or request a check from me.  All she said was for me to text her my offers.  That is it.    She came to the showing of the property with this couple who clearly she was very friendly with and she acted very cold and stand-offish with me.  I don't know if she had a personal relationship with the other couple but she certainly was very buddy buddy with them.     In any case, thank you all for your inputs, I have learned a lot and I just have to make sure the  next time I find a property that I want to make an offer on , I will take everyone's suggestion and be better prepared by making sure my offer is written or have the seller's sign that she/he has received my offer.

@Steve Morris  You don't understand, I am okay if the seller got more money, as I refused to play into a bidding war.  as it was at full price I was only cash flowing $100.  My issue is, not knowing if in fact my offers were presented.   I have no way of verifying that they were indeed presented other than taking the listing agents word for it.  Remember, this agent was very and I mean very chummy with the other buyers.  My fear is that I got played by her and that the seller never got to see my offers.  I guess I will have to wait until they close to see if indeed the sellers got more for this property.

I made two offers on a multi family property directly with the listing agent. On the day she set up for me to see it she brought another couple whom she seemed to be very cozy with. I don't know this realtor and know nothing other than the fact that she was the listing agent to this property. I saw the property and I immediately told her I wanted to make an offer. She told me to text her my offers and she would submit. I was kind of skeptical with the whole situation being that I saw how friendly and chummy she was with the other couple and very dry and stand-offish with me. None the less, I text her my offer right there and than. I made one offer a cash deal for 15k less than asking price and the other offer regular conventional mortgage at full asking price. She never had me sign anything in writing or asked me to put a good faith down payment to present the offer (I found this a bit weird, but whatever). Two days later when I texted her if she heard from the sellers she told me the seller was not going to contemplate anything less than asking price and was giving me and the other people who submitted the offers one more chance to come back with best and highest offer. I was taken aback with what she said because like I told her, I gave the sellers full asking price! but she just repeated the same sentence that sellers were giving us all one more attempt at submitting best and highest offer. I did not want to play into a bidding war so I told her I stood by my two offers with the only change that I would take away the mortgage contingency on the offer with the full asking price. Today I texted her again to see if she heard anything from the sellers and she calls me back saying the sellers accepted another offer that was above asking price.

I want to ask the BP community if it would be wrong for me to write to the sellers directly and make sure they did receive my offers? or would that be insulting the listing agent? I mean, I don't know her and I do know plenty of shady brokers out there. What do you think? I can't seem to shake off this feeling like she might have witheld my offers or misrepresented what I offered to the sellers. I have the sellers address..... should I write them and ask or just forget about it?

I made two offers on a multi family property directly with the listing agent.  On the day she set up for me to see it she brought another couple whom she seemed to be very cozy with.  I don't know this realtor and know nothing other than the fact that she was the listing agent to this property.  I saw the property and I immediately told her I wanted to make an offer.  She told me to text her my offers and she would submit.  I was kind of skeptical with the whole situation being that I saw how friendly and chummy she was with the other couple and very dry and stand-offish with me.  None the less, I text her my offer right there and than.  I made one offer a cash deal  for 15k less than asking price   and the other offer regular conventional mortgage at full asking price. She never had me sign anything in writing or asked me to put a good faith down payment to present the offer (I found this a bit weird, but whatever).  Two days later when I texted her if she heard from the sellers she told me the seller was not going to contemplate anything less than asking price and was giving me and the other people who submitted the offers one more chance to come back with best and highest offer. I was taken aback with what she said because like I told her, I gave the sellers full asking price! but she just repeated the same sentence that sellers were giving us all one more attempt at submitting best and highest offer. I did not want to play into a bidding war so I told her I stood by my two offers with the only change that I would take away the mortgage contingency on the offer with the full asking price.  Today I texted  her again to see if she heard anything from the sellers and she calls me back saying the sellers accepted another offer that was above asking price.

I want to ask the BP community if it would be wrong for me to write to the sellers directly and make sure they did receive my offers?  or would that be insulting the listing agent?  I mean, I don't know her and I do know plenty of shady brokers out there.  What do you think?  I can't seem to shake off this feeling like she might have witheld my offers or misrepresented what I offered to the sellers.   I have the sellers address.....  should I write them and ask  or just forget about it?