All Forum Posts by: William M.

so I'm trying to learn my local market and deal analysis in general. I don't have the funds to buy anything at the moment. (Address removed)

It's a two unit 4plex. looks like it was on the market for at least 120 days. So the fact that it's on the open market is a yellow flag, and for over 4 month also makes me think the same. I would estimate at least 5,000 if not 10,000 per unit in updates and appliances. The big problem is this is in a summer town " wild wood NJ" and it doesn't look like there is air condoning and that is a must. Window shakers look trashy and will kill a utility bill. New AC for all 4 units depending on ducting would be another 5,000 per unit. I'm evaluation this as a summer vacation rental and off season rental so utility will be included.

I checked air B&B and similar property's within a 3 Block radias look to be going for around 125 a night just about as is for the 2 larger units and 100 for the two smaller units as is. With the repairs I would expect (paint, vinal floors through out, tile bathroom, cheaper solid surface counter top, paint or reface cabnets, update needed furneture.) I see comparable rentals for 175-200 a night for the larger and 150-165 a night for the smaller. 

All in 225 purchase 40k repairs not including AC possibly use window units for two sessions before a second overall. 265,000

ARV my estimate 295k please someome correct me if I'm wrong and tell me why because I'm only guessing.

Cash flow

175 a night X2 + 150 a night X2 = 650 a night 

90 days of summer session I know it's longer than that but i'm building in vacancy and discount days to fill rooms. 90X650= 58,500

Figure in an off session rental of 6 months at 900 and 700 per month. 900X2X6 + 700X2X6 = 19,200

Year total 77,700

Now I'm not sure how to figure out expenses and finance fees like mortgage for this type of property. 

I used asking price and the higher repair cost and lower rent cost as to not artificially inflate the numbers to make a non deal into a deal. Of course lowering the price and repair cost would help.

Please help me figure out if I'm even in the right ball park and help finish this evaluation with a proper expense formula 

Thanks I'll keep looking into things. But upfront it's not looking like a very good wholesale location 

 what are you checking? MlS? That's only for Atlantic County how about cape may county? 

I live in Cape May NJ. I work near the Atlantic city international airport. So I'm hoping my target market will be between the two locations. 

Diversify. In the militery your base pay is crap I know this because mine was. So for 5 years I put in 5% of Base pay and left the military with a whopping 5,000 in my TSP. So I would say to put away more than that. My current employer will match up to 5% so it would be silly not to contribute at least that. I wish the militery would match as well. Now from the little bit of research I've done lately on tsp the g fund went up a little over 1% the best performing fund went up somewhere around 4% so if you fallow the market close enough to know what fund you need to be in its not going to be an earth shattering return. I fallow TSP Alocation guide. That's guy who follows the market and blogs about it.

Another strategy I've heard of is use your TSP as a bank account of sorts and self finance. Save up a lump sum. Take a TSP loan to buy a long term buy and hold "you must live in a militery town so I know there's a bunch of E4s/E5s running around with a BAH check willing to drop that amount on a rental so you know your market is at least the local BAH amount" you pay the loan back from your base pay and you pay your self about a percent and a half on that loan while receiving rent from your property.

I'm at the planning phase trying to gain knowledge of the process and the market. I searched my local REI and the closest member on the list is in a town over 50 miles away. The closest meeting is 60 or 70 miles away. Searching craigs list I came up with wholsalers in my geographic location but the closest property listed was again about 60 miles away. This to me makes me think my market is dead.

I live just south of that area and work only 5 to 10 min away what are you trying to figure out. 

hey gang I'm a new member from Cape may county New Jersey. I'm a navy veteran and work in aviation. I previously owned property in Virginia Beach that I recently short sold. I'm here to learn the process so I never have to go through that experiance again. I bought the house as my home in 2010 when my realtor told me the market has dropped as low as its going to go and can only go up, I didnt now anything about realistate and took his word on it. I lived in the property for a year then I was sent over seas for a year and rented the property out for equal to the mortgage but still lost money every year in management and repairs. the value dropped another 40k and had to short sell it.  I would like to learn more and eventually own rental property again that can cash flow and  hold equity. I would like to start with wholesaling as I learn the process and the local market better. My father in law is a contractor so maybe as the process progresses we can work out some deals together. 

Thanks 

Will