@Lamont Newsome bought my first deal in March 2017 for 24k. Put 5k into the renovation.
Rented it out immediately for 845/month and that tenant is still in there. I just refied the house at 68k and took 54k out of it for another deal. 😁
@Lamont Newsome watch the taxes... not just what they are today, but research the historical (10 year) trend. Make sure your not buying a deal that’s due for a tax assessment next year that will blow all your profit. Not sure where in Jerseybyou are looking, but PA is a much more investor friendly state. I’m in PA, about 50 minutes down interstate 80 from the Jersey boarder. The price and deals you can find are night and day.
Good luck
@Lamont Newsome bought my first deal in March 2017 for 24k. Put 5k into the renovation.
Rented it out immediately for 845/month and that tenant is still in there. I just refied the house at 68k and took 54k out of it for another deal. 😁
@Mike Dorneman that’s amazing man. Honestly great job, I’m sure you look at multiple deals before you finally settled on that one. Why did you pick this? What made this deal so appealing?
@Lamont Newsome Man, I sat in the bench for about 2 years! Since then I’ve been running though! I have a great friend who encourage me to finally do it.
This house met all the “rules” you hear about on the podcast and the renovations were all cosmetic which I was comfortable doing myself on the weekends.
After that deal, I became much more confident and I’m closing on my 9th house next week now.
Do you plan to do the work yourself, sub it out, or buy turn key?
@Mike Dorneman I originally planned to go with a turn key. Then I changed my mind because I’m pretty handy myself (my current job requires that) and now I’m kind of looking to go the route you did. Get a property that needs a cosmetic work and I can do that on my own to save a few bucks.
@Lamont Newsome if you are looking in South Jersey I can give you the names of a couple agents who work with investors. They can help you find the up and coming areas you are looking for. From my personal observation, the areas around Glassboro are seeing growth. There is some talk in Trenton of constructing a light rail line to connect Glassboro to Philadelphia and Rowan University has been growing.
@Mike Dorneman Hey Mike, I’m in the same area as you. I’m over by Hazleton, and I’m curious about how you did your refi. By the way that sounds like a GREAT BUY. I bought my first last year for 10K and put 40K into it (it needed all new plumbing and electric) the house was completely remodeled. I’ve been looking to do a refi but I’m not sure what banks to approach
@Victor Luna Hi Victor, I do all my business with Luzerne Bank (across from the old Radio Shake on Rt 93. Keep in mind the loans are commercial so you’ll need to have your business established. They are a great bank to work with and they are very fast to close.
@Victor Luna I buy them with cash and fix them up. Then after you get them rented out, you can refi them and get your cash back.
I’d be happy to meet up to grab a coffee some day and discuss.
Know your area(s). Spend time there maybe, or do the research. Get to know the locals. This isn't mandatory but I myself love working with investors that know (and have a certain love) for an area. That's just one thought.
@Lamont Newsome watch the taxes... not just what they are today, but research the historical (10 year) trend. Make sure your not buying a deal that’s due for a tax assessment next year that will blow all your profit. Not sure where in Jerseybyou are looking, but PA is a much more investor friendly state. I’m in PA, about 50 minutes down interstate 80 from the Jersey boarder. The price and deals you can find are night and day.
Good luck
@Lamont Newsome Why not look in PA if the deals are so much better and taxes lower than Jersey, like Mike Dorneman is suggesting? It's not such a long drive, after all.
I would, makes my mouth water! I just invested in San Antonio, and highly regret it. There's no income tax, so the property taxes are sky high, twice as high as my overpriced California property. It's a bitter pill to swallow, as I now have to decide whether to unload the properties I just bought and take the hit in selling costs, or to hang on with a 1% cap rate.
@Victor Luna Hi Victor, I do all my business with Luzerne Bank (across from the old Radio Shake on Rt 93. Keep in mind the loans are commercial so you’ll need to have your business established. They are a great bank to work with and they are very fast to close.
Any idea if they'd do loans down in Delaware? I'm in need of building a relationship with a new lender. :-)
New Jersey has become a very Location oriented State, you have your communities, schools and taxes to concern yourself with and as always Location, Location & Location.
As an investor and or House Hacker, the key is Transportation, Transportation and More Transportation. Take a ride to a major Train Station stop and pick up all the NJ Transit Maps and identify back into great rental locations via the train stops (Start with your Express Stops) and work your way down. This would be a great start then tie back to major bus stops and pick up those maps as well.
This will also assist you in understanding rents based on bedrooms, etc.
@Lamont Newsome Hi Lamont! As others have said, taxes, taxes, taxes. I'm currently house hacking a duplex in south jersey and am continuing to look for deals in that part of the state as well. Taxes are a tad lower and so are home values.
@Mike Dorneman Sounds like that first deal was a home run and really helped you take off. I've looked in PA, but don't know the areas well so am hesitant but as you've proved, the deals are there. Congrats!