All Forum Posts by: Alok Sood

Hi @Marcin Chojnacki - looks great - congrats on the quick and profitable sale! How long did the total project take from acquisition to rehab to market? 

Hi @Erez Friedlander, I've purchased a few properties here in NJ and have found that the closing costs vary quite a bit depending on the type of purchase/sale being made and financing (if any) being used. For example, with conventional financing, I've found that closing costs can average around 1.5-2% of the purchase price. On cash purchases this number is quite a bit less. Always better to over estimate and have to pay less at the closing table I say! Hope this helps.

Good luck!! 

Congrats @Melissa N.!! I'm hoping to eventually get to that point myself in 2017. Would you be willing to share where this property is located and purchase price? Just wondering what class of property it is (neighborhood), and what rents look like in that area. 

Good luck!!

@Jefferson Gan - I would agree with @Joseph Scorese on the average cost per SF to build in NJ and would add that it would also be significantly impacted by the Floorplan of your home design. A single story ranch is going to be a higher SF cost to build than a 2 story colonial simply because of the shared elements that 2 story homes have (roof, foundation, etc.). 

Good luck! 

@Nick Intrieri - I haven't done a complete tear down but down to the foundation pretty much on my current flip. I'm assuming that for a 3 bedroom you're going to need about 1000 square feet per unit minimum. Building costs through a general contractor are going to range from $100 - $125 per sf (roughly) so that's about $125k per unit. You're probably looking at a building cost of about $400k-$500k so all in at $650k-$700k. 

Now you might be able to save some portion of this if you can gut and reuse some of what's already there but that will depend on its current structural condition. 

I would consult with a GC just to get more realistic numbers and also make sure you have adequate financing with contingency funds before diving into this one. Also, check out what comps are like for similar type of new construction in the area. 

Good Luck! 

HI @Lilly S.. Having lived in Hoboken for the past 7 years I would say if I were in your shoes, I would attempt to either lower my monthly carrying costs by either refinancing or making some capex improvements to get higher rents so that you can at least break even on the cash flow. Or just cut my losses and move on. This crazy market can go up or down 6 figures within a year's time and might be riskier if you don't have a solid long term strategy.

Just my 2 cents :) Good luck!!

You might want to consider tearing down and building new if you're getting it at the right price?... In the end, it could save you $ and higher value for new construction. Plus less maintenance in the long run for buy and hold. 

That's 3.5x the amount to potentially find out the same thing which I'm not even sure if the bank will let you make any changes to the property while it's in their possession. I say spend the $500 and have a reputable licensed environmental company do the soil test around the tank to give you some indication of any potential leak.  They find anything, walk away. A leaky tank is no joke from what I've been told and could cost you tens of thousands to remediate not to mention months of further testing.

Hi George - I just went through this exact same thing with a deal I found in Maplewood, NJ from Fannie Mae. In the end, my only choice was to get a soil sample test ($500) and based on the results, assess the level of risk and choose to move forward or walk away. They were not willing to do any of the work if there was a leak and would have most likely killed the deal if I didn't move forward since it was so under market value. 

Ended up being that there were no leaks and I was able to get the tank removed for about $1600 with no issues. 

PM me if you want more info. 

Hope that helps. Good Luck! 

@Dominik Gajor - I would have an tank sweep done by a licensed company to make sure it's the only talk on the property (about $250). Once you confirm that, you'll want to do a soil sample test to make sure it's not leaking (about $500). These usually only ensure that nothing leaked out of the sides and doesn't guarantee that the bottom of the tank isn't leaking (usually 95% accurate overall is what I'm told). If everything checks out well, it's worth it to get the tank pulled, which shouldn't cost you more than $2k depending on permit costs, etc. In my opinion, any buyer is going to be hesitant when you disclose that there is a decommissioned oil tank coming with the property. 

Good luck!