Melbourne, FL · Member since 2015 · 99 posts · 42 votes
I am in contract to purchase 2 bedroom 1 bath townhouse in Burlington NJ for $20k all cash. This house is about 15 min from my rental in Willingboro NJ. It will rent for $900-1000 a month and needs about $5k to be rent ready. If I had another $40k I would purchase two more. My plan is to milk this cash cow forever, do $40k cash out refi in 6 mouths, use the money to purchase multi family properties. Forgot taxes pluse insurance is $317 a month so will cash flow between $583-$683 ($6,996-$8,196 annually).
Lender · Vacaville, CA · Member since 2015 · 58 posts · 21 votes
10y
that's great. How's that market working for you? Ivery lived there before, and I know Willingboro isn't the best community, but it's not terrible either.
Melbourne, FL · Member since 2015 · 99 posts · 42 votes
10y
@Jesse Richardson, I lived in Willingboro from 2005-2009. Since 2009 I have self managed the house we bought because we are under water. The market is great for buy and hold because seems like all the homeowners are shortsaling. These people still need a place to live so rents have gone up. For example you can buy a three bedroom for $80k real estate taxes $4000 and it would rent for $1600 if you did minimum or $1700-1800 if you updated.
I fly in to PHilly yesterday to inspect the house I am buying today. The house is a 2bed 1bath semi detached house I am buying for $20k cash. It is 2 miles from the River line in Burlington. @Darren Sager likes to buy properties near train tracks for easy access to public transportation and I agree. This house will rent for $1000-$1300. If I do section 8 rent will be in higher end. Property taxes is $2000 a year which I plan to appeal like I do for the Willingboro house. Insurance will be about $75 a month. The house doesn't need any outside repairs except power washing siding. It looks like previous owners replaced roof and updated kitchen a few years ago.
The funny thing is I originally had an offer of $10k cash to purchase the house attached to it. That house was on the market first and need more repairs like a new kitchen. The bank told the listing agent to pull the listing because the homeowner was able to pay the loan off. The listing agent had never seen a bank to do that before. I told my agent I wasn't worried because there is always another opportunity around the corner. The very next day the bank listed my current house I am buying for $24,900. I saw this was in far better shape and listing agent thought it would need $5,000 in repairs to make rent ready. We immediately placed offer of $20k cash. Listing agent said another party offered $10k cash. The bank counter both parties $23,900. We stayed firm at $20k and bank accepted. I am going to inspect this morning. I found two parties on Craigslist willing to rent for $1300 and I haven't even closed yet.
Investor · Tampa, FL · Member since 2013 · 2k+ posts · 1k+ votes
10y
@Watson Hilaire Mass transit stops equals lower vacancy, higher potential tenant pool and higher rents in my opinion. Not necessarily train tracks. Those could be where commercial trains go past in the middle of the night and keep potential tenants from living there!
Melbourne, FL · Member since 2015 · 99 posts · 42 votes
10y
@Darren Sager the River line (mass transit) is the only train using the track. The track is only for the Riverline. No commercial trains can use it or have access to it.
Lender · Vacaville, CA · Member since 2015 · 58 posts · 21 votes
10y
@Watson Hilaire those are good numbers. It meets the 2% rule. How are the tenants in the town? Have you ever bought in Browns Mills? Houses there are cheap too, for NJ. Lots of military live there for the short commute, but it too is not that great of an area. You'd be lucky to get an appreciation, but I imagine the cashflow is good there. I'm sure Burlington is good too for cashflow.
Currently, I'm buying with Turnkey, but if I move back there, I'd like to start doing it all myself because I can make more money that way. My plan is transition out of my current job by using rental properties.
Sounds like you're doing alright for yourself and have a good plan by staying close to the train lines.
Melbourne, FL · Member since 2015 · 99 posts · 42 votes
10y
@Eddie T. yes this will be my third house and second rental but first house I purchased without living in it first. My current home will be a rental when we PCS. Wife is an Air Force officer. I am not worried about vacancy because I will own house free and clear, we used to lived in Willingboro so have a feel for area and culture. The house is in great location, across the bridge is Levittown PA. Philadelphia is 20 min, Trenton is 20 min, Camden is 20min.
@Jesse Richardson tenants will be tenants, just have to screen for good ones. I close on November 6th but I already posted ad on Craigslist to rent for $1150 and have several interested. I think it should rent for $1200 but went with $1150 because section 8 fair market rent for two rooms in Burlington county is $1156. I visited Browns mills when I went to check house out. My wife has family in Browns mills. Yes housing in Browns mills are cheap but the majority of military tend to prefer to live in Pemberton, Lumberton, westampton or mount holly. At least that was the case when we were stationed there. Plus brown mills is too far in land and far from major cities and mass transit so I wouldn't by there.
@Robin Boyer thanks! I am searching for more deals like that but wife wants me to get this rented before buying another one.
Rental Property Investor · Yardley, PA · Member since 2012 · 436 posts · 198 votes
10y
I like Trenton a little more because it is in mercer county. I have flipped a few contract in Burlington county, but keep my rentals in mercer. The rental market is real strong in Trenton. I am not as familiar with Burlington, but I know people like it.
Rental Property Investor · Yardley, PA · Member since 2012 · 436 posts · 198 votes
10y
@Watson Hilaire - I have been to Burlington, but like I said I prefer to flip the contracts over there. I live 10 mins from Trenton. Have my rentals in Trenton, and have been happy investing there. Mercer County Eviction Process if very fair and streamlined.
Have you gone through the eviction process in Burlington? How was it? I just assigned a deal in Burlington for cheap cheap (12k total purchase price) because I didn't want to deal with it.
Melbourne, FL · Member since 2015 · 99 posts · 42 votes
10y
@Stephen Chatto I prefer Burlington because I am familiar with the area. I lived in Willingboro and commuted to Manhattan via Burlington riverline station to Trenton NJ transit. I have not had to do an eviction.
Developer · Philadelphia, PA · Member since 2015 · 2k+ posts · 904 votes
10y
Property taxes can kill cash flow in NJ but since the prices are low the taxes are reasonable dollar amounts.
I used to live in Princeton and wish I would have kept my house 😁
Melbourne, FL · Member since 2015 · 99 posts · 42 votes
10y
@Percy N. wow, Princeton! I have appealed and lowered my property taxes in NJ for the past two years. You are right property taxes are the highest in the nation.
Medford, NJ · Member since 2015 · 6 posts · 0 votes
10y
Hey @Watson Hilaire,
I've been reading your thread about previously living in Willingboro and investing in Burlington. I am just starting out in investing, and actually lived and went to High School in Burlington back in the day.
I was wondering how your investments are doing over there. I might be looking for some buy and holds there as well. The city is currently involved in a major redevelopment intiative that is looking promising.
New Haven, CT · Member since 2016 · 14 posts · 1 vote
10y
Hey Watson Hilaire ,
I seen that you have done some investing in Willingboro. I am from Willingboro and just moved to New Haven, CT. I was looking at doing some flipping and buy and holding in the Boro. I was wondering if you could help me out with a good realtor and reliable contractor for that area?
Well I am still searching for a reliable contractor to rehab my rental in Burlington NJ. First contractor took 25% and did nothing except left a few material on the property after two days of work. So I have been running into a lot of scammers or people who are not licensed. I am still searching. Hope you have better luck.