1st Flip - CLOSED 2nd Property (Rental) - 2/13 CLOSING.. HELLO!

1st Flip - CLOSED 2nd Property (Rental) - 2/13 CLOSING.. HELLO!

Other · Dunellen, NJ · Member since 2014 · 10 posts · 8 votes

Hello everyone,

Really happy to be here. I've been a longtime follower of the forums and listener of the podcast. I wanted to make an introduction here and be more active in the community and offer some insights wherever I can as I have just began to get my feet wet with my first two deals!

By way of background, I'm in the NY/NJ area and my parents were in the business (mother was a realtor, father was in construction) up until 2013,  and after graduating college I gravitated towards doing real estate myself. Currently I'm an office leasing broker in NYC and doing these deals on the side.

I closed on my first flip project located in Milford, PA on 2/6 and that's currently undergoing rehab for a resale (hopefully within 2-3 weeks the contractor will be done). This Friday, I'm closing on a 3 family rental property in Newark, NJ which will also provide a nice cash flow and help build my portfolio. My long-term goal is to keep building up my portfolio and units using profits turned from flips.

Happy to connect, get on a call, and offer insight wherever I can. I'm also looking forward to meeting other investors in my area!

Let's keep the ball rolling!

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Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
8y

Congrats on a great start keep grinding and keep growing!

See this reply in the discussion

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  • Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    8y

    Congrats on a great start keep grinding and keep growing!

  • Investor · West Orange, NJ · Member since 2017 · 85 posts · 37 votes
    8y

    Wow! That's inspiring! I'm looking for my first deal right now, and can't wait to get my feet wet as well! Do you mind sharing where did you find your deals and some of the numbers?

    Thanks!

  • Other · Dunellen, NJ · Member since 2014 · 10 posts · 8 votes
    8y
    Originally posted by @Stefano Grottoli:

    Wow! That's inspiring! I'm looking for my first deal right now, and can't wait to get my feet wet as well! Do you mind sharing where did you find your deals and some of the numbers?

    Thanks!

    Sure thing.

    Milford, PA (House Flip)

    I found this deal through a wholesale I connected with that works out of the Philly area. This was funded through a hard money loan. Numbers are as follows:

    Purchase Price: $90,000

    Rehab: $20,000 (paint, laminate floors, new finishes (chandelier,ceiling fan, thermostats, light finishes, etc), new appliances, and some landscaping for curb appeal)

    ARV: $165,000

    Newark, NJ Rental

    I found this deal through the MLS and it was officially listed at $299,000. Knowing I had some competition and they did a highest and best offer, I offered a little bit higher than asking as it still made sense. Will be closing on this with an FHA loan. Numbers below are assuming I'm paying rent for simplicity sake.

    Purchase Price: $310,000

    Unit 1$1,300.00 (3 bed/1 bath) - below market rents

    Unit 2$1,500.00 (3 bed/1 bath) - assuming market rents.. will be owner occupied

    Unit 3$1,200.00 (2 bed/1 bath)

    Total$4,000.00

    Potential Gross Income$48,000.00

    -Vacancy & Credit Loss$4,800.00

    Effective Gross Income$43,200.00

    Operating Expenses

    Repairs$2,160.00

    CapEx$4,320.00

    Utilities$1,500.00

    Insurance$1,500.00

    Property Taxes$2,300.00 (extremely low... had to double/triple check this)

    Total OpEx$11,780.00

    Net Operating Income$31,420.00

    Debt Service$20,169.96

    PMI$2,532.00

    Annual Cash Flow$8,718.04

    Monthly Cash Flow$726.50

  • Lender · Berkeley, CA · Member since 2017 · 1k+ posts · 549 votes
    8y

    Nice work! 

    If any of you Jersey guys want me to send you properties going up for Sheriff sale, completely organized by country via spreadsheet, let me now. 

    There's great info and contacts.

  • Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
    8y

    Welcome and congrats on your early successes @Wenner Nunes! Good to hear your keeping the family business alive. Are you looking into joining a REIA In your area?

    In an unrelated note I would have interest in seeing this spreadsheet of yours Mr. @David Weintraub. I'm particularly looking for properties in Croatia and Guatemala

  • Lender · Newark, NJ · Member since 2016 · 695 posts · 252 votes
    8y

    Congrats, i just closed on a 3 family myself in Newark a little over a month ago. Would love to connect with people in the area.

  • Anthony SuscoPro Member
    Lender · Turnersville, NJ · Member since 2016 · 173 posts · 68 votes
    8y

    @Wenner Nunes congrats on taking action and good luck!  Sounds like you're off to a great start.

  • Other · Dunellen, NJ · Member since 2014 · 10 posts · 8 votes
    8y
    Originally posted by @Odie Ayaga:

    Welcome and congrats on your early successes @Wenner Nunes! Good to hear your keeping the family business alive. Are you looking into joining a REIA In your area?

    In an unrelated note I would have interest in seeing this spreadsheet of yours Mr. @David Weintraub. I'm particularly looking for properties in Croatia and Guatemala

    I actually am looking around for a local REIA... are you a part of one in NJ? Message me and let's discuss!

  • Investor · Linden, NJ · Member since 2016 · 190 posts · 116 votes
    8y

    @Wenner Nunes you should do some research and see why the taxes are so low.  I know you don't want to shoot yourself in the foot by asking the wrong person but if it is an error or someone has not gotten around to updating it, they will put those taxes on the house eventually.  It happened to me once. They tagged $7300 from the prior year. 

  • Colonia, NJ · Member since 2017 · 12 posts · 1 vote
    8y
    Congrats and sweet name.
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