All Forum Posts by: Steven McCutcheon

@Jorge Diaz

If it’s a rental, let the tenant pay it off while you get the cash flow. If you pay it off sooner you’re money is sitting on the house and the value it comes in at. God forbid the market drops, so can your money.

As for the increasing it to 2 monthly payments, you’ll pay off a 30 year note in about 22-23 years. Hope this helps!

@Cyntnia Brooks

If you can get the cash flow up to where you think it can be this property would make much more sense. Be aware you’re in Trenton. High crime area, you’ll be dealing with a lot more problems than a B class neighborhood. It can be rough for investors over there unless the town ever turns! Good luck!

@Patrick Menefee

For clients in NJ, I've seen it work best using the BRRRR method. Otherwise using turnkeys are too expensive with our high taxes. Finding value add properties usually gets the 1% rule to work!

@Dante Farres

Depends on the area in NJ and how much the HOA fees are. We already have high taxes and property value, so the HOA can eat away the cash flow. The good news is rents are also high so you have a chance for it to work. If you do buy a condo, make sure you know what the HOA fee is and what they cover if something breaks. Do you have to replace anything on the inside or if a pipe cracks outside the dwelling is that your fix or the associations. Just a few things to understand being diving in! Best of luck!

@Jeffrey Edmiston

You’re in the right place! Good luck with it and attend some meet ups down in south jersey. Best place to network and maybe even help partner on your first deal to get your feet wet.

@Roey Malul

Don’t exactly know if they are or aren’t. Don’t forget Camden is a high crime area which can be viewed as a higher risk for banks to be lending to. I’m sure there would be other reasons, but this could be a huge one if true. Best of luck!

@Daniela Reyes

Hi Daniela,

I personally don’t have experience up there, but be careful with flood zones. Find out if the home needs to be raised, and see if they have elevation certificates to help quote flood insurance!

@Eric P.

First off, congrats! I know south Jersey is a little different with the use of attorneys/title companies, but up by me I tell clients to use and attorney and get a rock solid lease. NJ is notorious for being tenant friendly, so a great lease can help you out if problems occur! Good luck with REI

Best,

Steve

@Shaun Lee

Hey Shaun, what type of deals are you looking to do?

@Justin Henry

Sorry to hear about your father. I’m not 100%, but pretty sure tenants can change the locks especially if there is nothing about it in the lease. Hopefully your dad had an attorney or extra copies of his lease. As for the sale, the new owner takes over the remainder of the current lease and then it’s up to them how they want to handle the tenants.