Updated about 9 years ago on . Most recent reply
First Offer Accepted
Hi BP!
I've been a member for a couple of years now and have been reading, researching and learning as much as possible about RE investing. I haven't been activity looking for properties to buy but last week while I was analyzing properties for practice, I found one in my area that seemed to work numbers wise. I looked at it, liked it, made an offer and they accepted! I'm currently in attorney review and am super excited yet scared as hell about the coming journey.
I want to share with the BP community and make it official!
It's a up/down duplex in South Jersey that I'm getting for $101,000. It is not currently occupied and needs a lot of work. I'm thinking (hoping) $25,000 rehab.
It has 2 x 1-bedroom 1-bath units
Projected rent- $1100-$1200/unit = $2200-$2400 total
Taxes $5,300
Putting 20% down
According to the BP Rental Property Calculator, after deducting expenses, and accounting for vacancy, CapEx, PM (I'll manage myself first but budgeted for it anyway,) repairs, etc.I'm looking at between $395-$595 cashflow per month with a 9.5% Cash on Cash ROI
What do you guys think? Good deal for my first property?
Most Popular Reply
I am a real estate investor around the corner basically, in Cherry Hill and my wife and I own and operate a string of residential and commercial units in Camden County and Burlington County. I am in my 12th year as a SJREIA member and served on the Board for almost three of them. I am also a CPA who has provided services to several hundred SJREIA members during that time. In addition I worked for the IRS, and Ive appeared on radio, TV and in news print as a real estate expert. IM speaking for SJREIA on Jan 7th, too about buy and hold and how I use real estate as the centerpiece for my retirement, so I can retire with over a million dollars in my retirement account. (I'm on target, too).
So you're in review...did you get the home inspector yet? Are you sure you don't need to put 30% down? Do you have contractors to do the work? Do they have license and insurance. See that before you do anything with them. Cheap unlicensed guys are cheap and you get what you pay for. These numbers look good. Is the low price because it needs help or is it a short sale? Short sales are anything but short, so I would walk away. If this is your first deal, you want it to be the model of your real estate holdings...get used to the steps ...analyze, bid, review, inspect, oversee GC if needed, advertise, lease review, collection, etc.....kinda in that order.
Ill be a the SJREIA meeting next Tuesday, so you can introduce yourself there...happy investing. real estate is financial security for me.
Jim Kennedy, CPA