Just looking at what ball park numbers would be for utilities.

Hello All,I would like to try to purchase my first rental at as ‘discounted’ a price as possible.I plan to to BRRRR it as a means to start the ball rolling on my investment portfolio.How do I purchase foreclosures with a conventional mortgage in NJ/NY?

I gave a low-ball offer, negotiated back and forth for 3 weeks and settled on a fair price.

Additionally, their lease is for 3 years and I doubt that it would become vacant but if it were to become vacant, then I would be able to just recoup any turn over costs with the next option fee).Second position lender gets $200Cash flow $310Cash on cash return 310 x 12 = 3720/11000 = 34%Lease option sales price $239,900.Total estimated return if the tenant were to exercise the lease option the last month of the 3-year option period 239,900 - 151,000 loan balance - 24,000 - second position note + 11,100 (310 x 12 x 3) for cash flow = 76,000.IRR over 3 years would be 76000/3/11000 = 230% per year.

Once you are ready, now it's time to look for local agent who can help you make the ball rolling... 

It can get complicated so please exercise due diligence.

My neighbor does something like this with  Gum ball machines and makes a nice profit.

Plus, we've never had too much trouble getting paid our rent (it happens, but it's not something I lay awake worrying about - at least pre-corona) so he was essentially trying to bribe me with buttons and a ball of yarn for all I was concerned. 

@Alberto Mazatan Trevino Unfortunately, there really is no exact science to accurately predicting a future cap rate because none of us have a crystal ball. 

If it needs work, those looking for a deal will try to low ball you.