All Forum Posts by: Syed H.

So appliances are always an issue. 

Even brand appliances will break bc tenants somehow always break them (regardless of brand). You'll also learn the hard way that ALL of the brands have HORRIBLE service when you actually need a repair. GE & Whirlpool will sometimes tell you 2 weeks to get a new compressor in bc they are backordered. So your tenant won't have a fridge for 2 weeks. 

If you go used:
Find a local used appliance shop. Mine delivers & repairs anything I buy from him. I wouldn't buy used without this. 

Either way you go, appliances are always going to be an issue because many tenants abuse them. If you leave a fridge open, you are going to burn out the compressor

My decision for used vs new always depends on the class of property. I'd never put in brand new in C/D properties. 

I’m in the local market. Shoot me a pm

Since you aren't a flipper, I wouldn't assume you can get it done for $60k vs a contractor $70k bid, bc that $70k bid after some change orders is $90k. So I would agree that if the ARV is 180-185 you have a slim margin. There's carrying costs, closing costs, & selling costs; etc as well.

Seriously? So were u born rich? Ever heard of a dorm? Ever heard of being young or in college?

Wow this is a long post. A lot of the issues here are you making huge mistakes in management. 

Your lease renewal system is horrible.

Your insurance requirements make no sense. 
You didn’t have working heat for 5 months... wow 

Not accepting partial payments in PA makes no sense. 
They left you a mess in the first property and you wanted them in a newly renovated place? 

You need to get serious about this business if you want to be successful. You are making tons of mistakes here. 

North NJ is def hard, but there are plenty of areas you can still cash flow like parts of JC, Elizabeth, Bayonne, Union City, Newark, kearny; etc. All of those places are good areas to buy IMO. 

Also you get a lot more appreciation in northern NJ than most areas. I just sold a 2 fam in bad parts of JC for $130k more than I paid in 2018 with only a light rehab ($10-15k). It would take most people a long time to make that kind of money in “cash flowing” towns. 

Considering moving to a country you believe in than. No point in investing in a country you don’t believe in.  

You pay tax on any income after depreciation, not cash flow. Depreciation recapture is a tax if you sell. It doesn’t recollect the full depreciation. Depreciation is one of the biggest gives to REIs. 

Whichever one that: 

• Has an economy that I believe in
• Is within a reasonable driving distance
• I can afford to reach scale (owning 1 rental sucks IMO)

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