All Forum Posts by: Thomas Lee

@Dalton Dyer I second the house hacking suggestion. Identify one of those up and coming "boom cities" and find a job there. If you can get started with FHA financing and rinse and repeat, you'll have a sizable portfolio in just a few years. You don't even have to find "deals" – as an FHA buyer you will probably have to offer more than a traditional cash or conventional financing buyer, but with 3.5% down your returns will be worth it.

What is your job/career? Without a stable income, finding financing will be impossible and you'll never get started. My greatest asset when it comes to getting started in real estate investing is my paycheck. You'll need some income and credit history as well to get started...start building that now...you have an ocean of time in front of you.

Not sure how valuable finding a "partner" will be when you don't have any experience or capital.

Hi @Anthony Caleca, did you end up buying the property (or any other properties) in E Orange? Would be curious to hear what your experiences have been in terms of your property performance vs. projections as well as your experience with property management and finding tenants.

I too think that E Orange and Orange have great investment potential, given the further gentrification of Newark and the perpetual unaffordability of NYC.

4-units in particular seem great, given their relative scarcity in this market. Can't imagine having trouble renting out a 4-unit close to a train station in this job market.

@Jonathan Greene, could you elaborate on your insight that "renovations take some relationship development with the town in these areas as the building inspectors can be difficult depending on what day you catch them"?

As a newbie investor, I'm not sure what the context is here. Would the circumstances in which a renovator be interacting with an inspector basically be when trying to get a new CO permit issued by the township? Are there any other contexts? And what are the challenges in passing an inspection here?

@Amanda R. congrats on closing! Understand the struggle to land a property...the struggle is real! Was the hard part finding a property that was affordable enough to fit within your criteria or finding sellers who were willing to accept your low DP offer? Were you using FHA financing? Do you think areas outside of a 0.5 mi radius of train stations have development potential as well? As a city dweller, I'm not familiar with the renter demo of that area and am assuming that most of the renter class are people who commute to Manhattan. Doesn't seem like there's a lot of parking near the stations so I'm wondering if you think areas further removed from transit have development potential.

@Darren Sager thanks for sharing your perspective. Obviously been a while since you've seen that house, but how much in repairs do you estimate for a place like that? Also, newbie question: what's the problem with an oil tank? Is it the risk of environmental cleanup liability if there's soil or groundwater contamination? Or is it a code violation?

Happy new year to all!

@Jordan Gregg, out of curiosity, were you able to find a property in the Watsessing area?  Bloomfield looks very promising overall given the pace of development there and the fact that Jersey City and Hoboken are too expensive these days.  Too bad you lost out on a 4-plex, they are pretty rare in the area. May I ask what kind of offer you put in and what the topping cash offer was?

Hope your 2017 was a successful and abundant year for RE investing!

Thanks @Russell Brazil and @Jessica Zolotorofe.

@Liz C. well, I guess that's what it takes to find appreciation in the greater NYC market. That's what they said about Williamsburg and Hell's Kitchen in the 90s, Bed Stuy in the '00s, and Jersey City in the early '10s. Gentrification is a powerful thing and having seen it up front, I wouldn't bet against it. NYC is constantly expanding its borders. I don't think Newark is a sure thing but I think long-term buy and hold investors should be long Newark. 

Thanks @David Weintraub!

@Antoine Martel I'm seeking a Real Estate agent that specializes in the Newark, NJ market. Any recommendations would be appreciated.

I'm an investor seeking to scale a portfolio in this market over the next 2-3 years. Any recommendations would be greatly appreciated.

Thanks for the reply @Brian Adams (I've been reading your fantastic blog over the weekend, including the post you mentioned). Will reach out to you Monday to discuss further!