All Forum Posts by: Wayne Loux

Hey Miguel we have seen a great spike in prices in NJ I have been licensed for 14+ years and investing in multies in NJ for 15+ years.  Would love to discuss  your options.  Feel free to learn more about me from my episode of BP money #158.  Lets connect soon.  All the best.

Thinking of selling the first deal I purchased back in 07 located in South Amboy, NJ.  2 family, 2 bed one bath first floor occupied at $1700 a month and the second floor we should be locking up a new tenant shortly for $1500 a month also a 2 bed one bath but offers an unfinished attic that has some potential with some tlc.  We  would want to 1031 exchange but open to offers.  Message me for more details.

Shoot for a higher monthly net, everyone is right that wont go very far when taking into consideration vacancy and repairs.   Set your goals but also try and narrow down the search and dont follow trends as much, tons of competition.  Plenty of opportunities out there just need to hustle to them in this environment.  Feel free to connect if you have any questions or need any help.
 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Three Bridges.

Purchase price: $263,000
Cash invested: $50,000

Loved the original bar and loved the opportunity to increase the cashflow

What made you interested in investing in this type of deal?

Older 3 unit that had low rents and room to improve

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

Originally had the deal locked up with seller financing then had to get a commercial loan when seller got cold feet

How did you add value to the deal?

Improved the rents when new tenants came

What was the outcome?

Great cashflowing property

Lessons learned? Challenges?

Older places have more maintenance

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am licensed

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $260,000
Cash invested: $9,000

First multi family my wife and I bought together, we lived in the first floor unit for 4 years.

What made you interested in investing in this type of deal?

Needed work, had a great floorplan, awesome backyard

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

fha loan

How did you add value to the deal?

Gutted both floors and remodeled each

What was the outcome?

Rent was increased and we lived in one unit for 4 years

Lessons learned? Challenges?

Not easy living with tenants but easier to tackle issues right away

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am licensed

Investment Info:

Single-family residence buy & hold investment in East Stroudsburg.

Purchase price: $230,000
Cash invested: $5,000

Purchased this for a relative to live in with roommates, used private money for most of the downpayment. Its in a college town and offers a decent amount of square footage for the area.

What made you interested in investing in this type of deal?

Family member needed housing up in college

How did you find this deal and how did you negotiate it?

Family member found it with committed roommates

How did you finance this deal?

Private loan for downpayment and fha loan

How did you add value to the deal?

We rented rooms instead of the whole home

What was the outcome?

Increased cashflow and still have to this day

Lessons learned? Challenges?

Out of state investing can be annoying but our dollar stretched further

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

Investment Info:

Small multi-family (2-4 units) buy & hold investment in South Amboy.

Purchase price: $265,000
Cash invested: $10,000

My first purchase with a business partner and best friend. We were seniors in college when we bought this multi and our plan was to move in after graduation but we ended up renting both units out. We still have the two family to this day.

What made you interested in investing in this type of deal?

Wanted a place to live in after college decided on the cashflow instead

How did you find this deal and how did you negotiate it?

MLS

How did you finance this deal?

3.5% down fha

How did you add value to the deal?

Renovated the second floor unit

What was the outcome?

Increased rents upstairs

Lessons learned? Challenges?

Property management and tenant selection

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am licensed

In the middle of refinancing down to a 15 year, didnt want to pull cash out and cut back on my cash flow.  Will still be cashing flowing close to what I am getting now and shaving 14 years off the mortgage. 

My senior year a good friend of mine and I purchased a two family that we wanted to move into post college. We fixed up one unit and rented out both while still at Rutgers. We graduated and decided to keep the small cash flow and move in with family to save for another home. 10 months later we bought another. I think there is no harm in starting small with a 2 or 3 unit and see how you like being a landlord/manager. I would highly recommend renting out rooms to your friends if you are living in one unit that has multiple bedrooms. If you have 2 years work experience or your degree is in the field you plan to pursue you should be able to get a loan easy. FHA or conventional is fine, if the place needs work I like FHA 203K loans. Hope this helps

Sorry guys I have not been on the site in a few months.  Was busy with another project and life.  So update on this multi.  I have the same tenants paying $1750 for the larger unit and $1550 for the other.  Mortgage, taxes, and insurance are $1698.  I manage it myself and only have a water bill quarterly and lawn maintenance in the spring & summer.