All Forum Posts by: Sebastien Jean-Baptiste

Thank you guys for taking the time to reply! I took great value in the comment about becoming a target, Gabe. 

"Would you be looking to house hack the next one and get out of your parent's house?"
- Yes, that's the plan. My parents house would kind of be my base of operations (moving in/out as needed). For all future purchases until I can compete with the big boys cash wise. 

The property is in Bloomfield, near Montclair.  I'd love to get my hands on a two-family in that area, that would be worth it to me 100%, I'd have to see how spring 2021 shapes out in order to see if I can compete. 

I Live in North Jersey, where home prices are high to say the least. It's hard to find a deal without being out bid by all cash offers and investors in prime areas. In 2017 I managed to get my first home near Montclair with a vision of renovating it and renting it out( got lucky, I was the only one who showed up in a snow storm during a best offer situation and the sellers wife was due in the next month!). fast forward to 2018, I've rented the property, got lucky and got an awesome tenant who just extend the lease for 2 more years. 

Property Breakdown:
Purchase: 270k
Value today: 330K
Debt on Property: 240K
Mortgage: $2,000 (taxes & insurance included)
Rent: $2,500
Landlord expenses: $45/m - water.

I moved back with my parents and save a good amount a year. My parents are very supportive and told me as long as I'm moving "forward" they don't mind at all (they are retired). 

I'm preparing to get another property but I'm not sure if I should save my money and pay off the first property or invest in another. If I double down, I can pay off the property in 3 to 4 years and increase that profit margin to almost $1400 a month. 

However, I understand that if I take my savings and seed other properties, in the long run, I'll have a larger net worth.

I love cash flow, but would I be making a objective mistake paying off the first home instead of investing in another? Even though the entry price NJ is much higher. Even dilapidated houses in the right neighborhoods for renters still start off at 320K in my area.  If I were to buy another one, it would be 30K+, + Closing Cost 15K + Renovations (10K+) and sit on it for a year because I wouldn't be able to rent it out as a home owner unless I bought it as an investor etc (higher down payment etc.)  

I've done a lot of research and lurk the web all the time, I see people on youtube who emphasize more doors, more doors! But they live in Cleveland or somewhere where a house cost 100K and I envy them. In NJ it's a lot tougher to collect doors unless you are willing to go into some tough areas which I am not, I spent some time in my youth there and it's just not for me at this point. 

if you have some advice, I'd appreciate it!