All Forum Posts by: Yvette Chung

Hello all! Would love to get your thoughts on this property that I'm very close to pulling the trigger on. I am new and have never owned anything so this feels pretty nerve wrecking so far. New Potential Property Duplex Purchase Price: 175K Rents per month: $2500Total RE Taxes : $6500 (taxes may look quite high to some because it's in NJ) Neighborhood - not the best town but it's not Camden either. As a girl I felt the immediate is relatively nice, just not one that I personally would want to raise a family in. Rental units appear to be in pretty good demand. No improvements needed at this point and the property already has two tenants. (One of the leases is ending soon) i will be putting 20% down and my monthly mortgage/Taxes/insurance payment should be around $1400 or less. For the first couple years I will be owner occupying one unit but eventually will rent both out. What do you think? Thank you all!

@Anthony Dooley - Thanks! Yeah unfortunately NJ is notorious for having high property taxes and actually this one doesn't seem all that bad. I know there are areas that have 10k+ in taxes especially for multi family.

@Richard S. - I did do some research on  rental prices in the area and believe those rents are realistic and attainable. Thanks for pointing that out!

Hello @Lauren C. @Joseph Scorese @Anthony Dooley@Christopher Giannino @Mark Langdon @Richard S.

Thank you all for your comments!!! Based on advice from you guys and some additional calculations, i have finally decided to not move forward with this place. I am so thankful for this forum and community, as I could have potentially made a bad investment decision.

I have, however, located another potential property that I am likely going to move forward on. I think the numbers check out, but i am a first timer and really do not trust myself at this point. So i would really love to hear what you think

New Potential Property

Duplex

Purchase Price: 175K

Rents per month: $2500 Total

RE Taxes : $6500 (08109)

No improvements needed at this point.

i will be putting 20% down and my monthly mortgage/Taxes/insurance payment should be around $1400 or less.

The only caveat is that there are currently tenants in it and i just found out today that they are section 8 tenants. I have met them in person and they appear to be nice people and for the most part, took care of the apartments well. But I am not sure what kind of complications it adds to this. 

If you could share your thoughts on this, i'd very much appreciate it. Thanks!!!

Hello fellow BPers!

I currently live in Pennsauken, NJ and have been looking for multi-family homes to purchase as my first investment property. I am new to RE investing and would really love if you could give me some feedback from you as I am currently on the fence of pulling the trigger.

Potential property:

Duplex

Purchase price: $225K, I would probably need to put in approx. $3000-5000 worth of work to make it rent-ready.

Rents per unit: ~1300

Taxes: ~9500 (Camden county, yikes)

From a cashflow perspective, I think it’s minimal. But property is in a great location and probably relatively good quality tenants too.

I think I am ready to pull the trigger, but at the same time, with minimal returns, I can’t help but ask myself, why not just invest in the stock market?!

What do you think?

Loubert Antoine hey Loubert - thanks for the reply. Why do you say I'd be losing money big time? I didn't think I'd lose money - and certainly not big time? But maybe I'm missing something?

@Simcha Davidman - Thanks for your reply! Can you elaborate on "Let's forget the time period that you're living there, because the income will be skewed down."? I am a newbie (obviously) and am not sure i understand what you mean. 

I have been running the numbers across different calculators and/or spreadsheets, it seems like there would be cash flow, just not a ton, at least not for a while. But the property is in a safe quiet neighborhood that i'd be ok with living in and also seems to have a steady stream of renters. I just don't know what i may be missing.

Thanks @Courtney Downtain! Good luck finding your first purchase too! :)

@John 

@John Fleming - Certainly! Would love to hear from someone local who can shed some light on this! PMing you shortly.

Thanks @Julie Marquez I have punched in the numbers on the BP calculator and it seems to be telling me that cap rate is ~5% and 0.8 in the 2% rule. But all these numbers do not mean too much to me, I don't think i am getting a great "deal". But the price is in line with what things have sold for recently in the area. I am afraid of all the What if's. But you brought up a great point, it is that i will be able to learn to be a landlord through this property. That experience cannot be read from a book or any websites.

Hello all -

I am a first time home buyer with no experience in RE other than knowledge acquired from my lurking on BP. I decided that my first step should be to find a duplex or small MFH to "house hack", as I am currently renting. 

I have looked at many houses in the Philadelphia area but many of the places I have gone to were no areas in which I am comfortable living in. Finally I have located a property that I would feel very comfortable living in but of course it comes with a premium. I am thinking that it's ok to get this property but again, I am really nervous about this. 

Here is the property details:

Duplex - 2bed/1bath each

Each apartment can rent for ~$1100 as it stands

Real Estate taxes: $3100 per year 

Owner pays water and sewer - which averages to about $100 per month

Price of the Property is $272K.

In a B/B+ area, stable renters and vacancy rate should not be too much of an issue.

Currently I pay $800 in rent in a different area. If i go through with this i would occupy one unit but eventually will move elsewhere and the plan is to rent them both out.

Can you please let me know what you think? Am I close to making a financially stupid mistake?

Thank you!

Hi @Brett Brown!

Thanks for the idea! I will certainly look into it although since it's my first property, i would probably prefer a purchase that's a bit more beginner-friendly. :)

I have been looking all over Philly, Wynnefield, Mt Airy, certain parts of Germantown, Manayunk, South Philly and even Northeast Philly. What never seized to amaze me is how block to block the city truly is, even within the parts of the city that's generally considered to be "good neighborhoods". Not sure whereelse to look, honestly. Or maybe i just need to be more patient. :)