All Forum Posts by: Stefani Mokris

You willdo betterin areas with public transportation access to NYC.

I agree with previous replies. I think if you call the city they would be able to guide you. 

Wishing you all of the best on your real estate investing journey!

I think everyone above covered what do property managers do.  Now, the best way to find out about fees is contacting a property management company that you might be interested working with and request a sample of their contract.  In their contract you will find all the little details and additional fees that you might need to cover.

Hope this helps!

I don't have any experience in house hacking.  But from my calculations, sounds like you were able to avoid putting in an additional 28K in downpaymemt by house hacking.  That is money that can be saved for your next property a year from now, some money for renovations, or even a full downpayment for something out of state!

Congratulaions on your deal! Wishing you all of the best! 

I think Shawn Mcenteer gave you great advice.  When it comes to creating financial freedom and wealth building, multifamily is the way to go.  But from the feeling I got from your message you and your friend want something more simple that will accommodate your commute to NYC.  New Jersey is a good appreciation market, if you feel more comfortable with a single family home I think it's fine starting in there.  Over time your property will appreciate and you can use that appreciation to invest in a larger property when you and your friend feel ready.  In regards to "turkey", my suggestion is going to "livable" vs "looks gorgeous and we will never have to do a thing to it", the second option comes with a premium price tag and taken away your chance of forcing some appreciation (some sweat equity) on top of your passive appreciation.  You can buy something that you can move in and do little projects over time. Typically larger banks will be the most picky, but will give you the best interest rates, so I would start there since credit score and work history are not an issue for you and your friend. 

If you are interested in long distance real estate investing, start by reading David Greene's book.  That's what I did and so far so good.  If you move into a more affordable location, I bet you will quickly be able to save some money to buy out of state.  And having one property under your belt will give you a boost of confidence too to invest long distance.

Hope this helps! 

I've heard that in the state of New Jersey individuals can't lend to other individuals? Individuals CAN lend to LLCs. I have borrowed funds from a lender this year, but she used her self direct IRA. My two tips are: start by visiting a title agency, they are the ones completing your transaction, so they will be able to provide you with some guidance. Second tip, have a conversation with your attorney. This is how we completed our private lending deal.

Hello @Brian Agostinho! I see you have received lots of good advice.

My advice is for you to work on becoming the person that bank simply can't say no: build your credit score, create a good work history, maintain your expenses low, start saving for your future downpayment.

Also get yourself prepared investing on yourself: get educated, network with other investors, learn about your desired market, analyze real properties... all of this is free or nearly free while you are saving money.

I hope this helps!

Hello @Michele Granata!

When we bought our first income property we opened a regular joint checking account at PNC Bank, which was the bank where we opened a HELOC to fund the new property downpayment + closing costs, and also the bank for provided us with a mortgage for the new property. At the time we didn't have a LLC, so we it was a simple bank account on our personal names. This is how we separated our personal money, and our business money.

We kept the security deposit in that account. We knew $2400 was the deposit and we always kept $5000 for repairs and maintenance. So it meant that our account always had $7400 in it. And anything extra would go into our HELOC to get it paid off. Very simple like that. But I am sure things become more complicated once you scale.

We use USAA as our primary bank for personal needs. They also have all of our insurance policies: primary home, income properties, car, and jewelry. By having one insurance provider we are able to get lower rates. So I suggest you to start checking for a insurance policy for your new rental at the same company you already use for your current primary home.

I am not that much more advanced than you in real estate investing, but feel free to contact me anytime with questions. You have my contact information.

By the way... I am super happy for you!!! Congratulations!!!

 Thank you @Greg Schreffler!!!