All Forum Posts by: Christopher Tully

Thanks for the advice @Connelly Hayward , I'll be buying under an LLC so I should probably revise my rate up to 7 or 8% which would drop cash flow to 2.3 - 2.8k and ROI to 10 - 13%.

@Amit Patel as for point A, I believe this market is at or near the bottom and this neighborhood especially will benefit in the next 5 - 10 years from some upcoming development nearby.  

As far as B - I'm unfamiliar with 'Actual collection rate', would you mind explaining?

Thanks for your input

Hey everyone, looking to invest in Multi Family Units in the Atlantic City, NJ market.  Came across a duplex in a neighborhood that I like which I think has some potential.  Well maintained property, doesn't look like any major improvements are needed off the bat.  Studio unit and a 2br 1 bath.

Asking price is 79500, I estimated financing with 20% down and 5% over 30 years.  Also added 6500 for improvements and closing costs.

The property is vacant and the seller hasn't provided previous rental rates but I conservatively estimated 600 for the studio and 1000 for the 2br.  Put in vacancy rate at 10% although the neighborhood trends lower.

I also estimated expenses as follows:

• Insurance $1,000.00
• Taxes $3,300.00
• Property Mgmt 10% $1,728.00
• Maintenance $1,000.00
• Advertising $300.00
• Utilities $2,000.00
• Total Expenses $9,328.00 

After all that I'm coming out with a cash flow of ~$3800, Cap rate of 10%, and ROI of 17%.

Am I missing anything?  Any thoughts on the deal as a whole for a first time investment?

Thanks for your insight.

 Hey David,

I'm interested in rental properties currently.  Still unsure of my market at the moment however.  Working on educating myself using all the resources here before dipping my toes in the water.  Thanks

 Thanks Steve, that's really helpful.

Thanks for the info @Trexie E.

Hello my name's CJ and I'm entirely new to Real Estate Investing.  I work full time in the software industry and enjoy my work, however I'd like to build some long-term wealth through investing in real estate.

Looking forward to absorbing some of the immense amount of knowledge here.