All Forum Posts by: Ibn Abney

@Diego Romero Sounds nice. great area. I love small condos.

1) still use the normal % for maintenance and vacancy. Anything extra is gravy at the end of the year. be conservative.

2) Just model the potential increase into you numbers. 2%-5% annually

3) Where in the loop? doing STR/airbnb may be a better options due to the area. Of course rents can drop. a 10% market drop would put you at $2,250/rent monthly.

**Personally, I wouldn't do anything for $100/month. I would aim for at least $300/month. A change of the HOA to $300 (which is possible and still good for the loop), would wipe out all profits. my 2 cents.

good luck

@Christian Cody ARV for properties 1-4 units is based on local comps. Look at local transactions: notice finishes, price per sq ft, location, school district, walking score, crime, etc.

Properties 5+ units ARV is based on NOI.

@Christian Cody 

1) use any website (zillow, redfin, trulia) to get the property's PIN.

2) then go to the county's tax assessor/website

3) enter the PIN

4) you now have access to the tax history. its public info

@Jay Helms Yes, all have loans. Standard minimum down payments. No large down payment %.

As i mentioned, its a matter of market and property type.  Areas where rents are $1200-$1800/month, but properties are $80K-$150K is definitely possible.

If rents were $500-$600, after expenses and vacancy, % return may be high, be actual $ cash flow are lower.

Jay Helms $300/month doesn’t have to be a D class area. All my units are in B- to B+ areas and I aim for $300-$400/door. Nilofer Sickander I think it’s a matter of local market. If your average rent rate is $500, then there isn’t much room for anything after expenses. However, if you are like my area and rents are $1500/avg and you buy right, higher cash flow is more probable. Also, If Brandon Turner has 20-30% equity in the deal via a BRRRR, then $100 cash flow isn’t too bad, because he likely pulled all his money out after the refinance. However, if you spend all your capital on the down payment and only cash flow $100 you are in a much tougher position for the next deal.

@Tiffany Ralston Cash on Cash includes the down payment, but I believe it should be isolated and measured on its own.

I use the break-even formula. I look to break even in 2-3 yrs from purchase (get my down payment back).

BE= (Down payment + closing cost+rehab)/monthly net cash flow

Summary Statistics

Sample Size	20
Max	$2,272
Min	$1,200
Median	$1,475
Mean (x̄)	$1,553
10th Percentile	$1,238
20th Percentile	$1,300
80th Percentile	$1,750
90th Percentile	$1,925
Standard Deviation (s)	$281
Standard Error	$63
Coefficient of Variation	18.1%

Bldg TypeAddressPriceSizeBedsBathsLast List Date

Higher-priced listingApartmentE 34th St & Broadway, Bayonne, NJ 07002$2,0002 bed1.0baMar 2018

Higher-priced listingApartment1141 Kennedy Blvd, Bayonne, NJ 07002$1,850805 ft²2 bed1.0baMar 2018

Average-priced listingApartmentNewman Ave & W 3rd St, Bayonne, NJ 07002$1,350750 ft²2 bed1.0baFeb 2018

Lower-priced listingApartmentW 19th St & Avenue C, Bayonne, NJ 07002$1,225900 ft²2 bed1.0baFeb 2018

Lower-priced listingApartment601 Kennedy Blvd, Bayonne, NJ 07002$1,2502 bed1.0baFeb 2018

Average-priced listingApartmentW 54th St & Kennedy Blvd, Bayonne, NJ 07002$1,3952 bed1.0baFeb 2018

Average-priced listingHouseW 55th St & Avenue C, Bayonne, NJ 07002$1,8002 bed1.0baFeb 2018

Higher-priced listingCondo26 Maritime Way, Bayonne, NJ 07002

This price appears to be an outlier and was excluded$2,6002 bed2.0baJan 2018

Average-priced listingApartment498 Avenue A, Bayonne, NJ 07002$1,700900 ft²2 bed1.0baDec 2017

Lower-priced listingApartmentE 15th St & Broadway, Bayonne, NJ 07002$1,2002 bed1.0baDec 2017

Average-priced listingDuplexHumphrey Ave & W 6th St, Bayonne, NJ 07002$1,650950 ft²2 bed1.0baNov 2017

Higher-priced listingApartment1040 Kennedy Blvd, Bayonne, NJ 07002

This price appears to be an outlier and was excluded$2,9001,243 ft²2 bed2.0baNov 2017

Average-priced listingHouseAvenue B & W 45th St, Bayonne, NJ 07002$1,6751,000 ft²2 bed1.0baNov 2017

Average-priced listingHouseAvenue A & Edwards, CT, Bayonne, NJ 07002$1,4502 bed1.0baNov 2017

Average-priced listingHouseAvenue C & W 50th St, Bayonne, NJ 07002$1,6501,200 ft²2 bed1.0baNov 2017

Average-priced listingDuplexHumphrey Ave & W 6th St, Bayonne, NJ 07002$1,500850 ft²2 bed1.0baOct 2017

Average-priced listingApartment1111 John F. Kennedy Blvd, Bayonne, NJ 07002$1,4002 bed1.0baOct 2017

Average-priced listingApartment45 Kelly Pkwy, Bayonne, NJ 07002$1,3002 bed1.0baOct 2017

Average-priced listingApartmentJohn F. Kennedy Blvd & W 32nd St, Bayonne, NJ 07002$1,4502 bed1.0baOct 2017

Average-priced listingHouse124 W 19th St, Bayonne, NJ 07002$1,3001,000 ft²2 bed1.0baOct 2017

Average-priced listingApartmentW 4th St, Bayonne, NJ 07002$1,6352 bed2.0baSep 2017

Higher-priced listingApartment42 Jfk Boulevard, Bayonne, NJ 07002$2,2721,022 ft²2 bed2/0baSep 2017

Bldg TypeAddressPriceSizeBedsBathsLast List Date

Lower-priced listingApartment312 Danforth Ave, Jersey City, NJ 07305$1,100800 ft²2 bed1.0baMar 2018

Average-priced listingApartmentVreeland Terrace & Garfield Ave, Jersey City, NJ 07305$1,6002 bed1.0baMar 2018

Average-priced listingApartment70 Armstrong Ave, Jersey City, NJ 07305$1,2752 bed1.0baMar 2018

Average-priced listingApartment130 Cator Ave, Jersey City, NJ 07305$1,5252 bed1.0baMar 2018

Lower-priced listingApartment128 Neptune Ave, Jersey City, NJ 07305$1,0952 bed1.0baMar 2018

Higher-priced listingCondo30 Constitution Way, Jersey City, NJ 07305$2,6501,250 ft²2 bed2.0baMar 2018

Rentometer Listing IconApartment337 Ocean Avenue$1,075900 ft²2 bed1baMar 2018

Higher-priced listingCondo15 Enterprise, CT, Jersey City, NJ 07305$2,7001,171 ft²2 bed2.0baFeb 2018

Average-priced listingApartmentClerk St & Claremont Ave, Jersey City, NJ 07305$1,5002 bed1.0baFeb 2018

Average-priced listingApartment264 Arlington Ave, Jersey City, NJ 07305$1,2502 bed1.0baFeb 2018

Higher-priced listingCondo4 Constellation Pl, Jersey City, NJ 07305$2,6501,270 ft²2 bed2.0baFeb 2018

Average-priced listingApartment86 Winfield Ave, Jersey City, NJ 07305$1,3502 bed1.0baJan 2018

Average-priced listingApartment72 Van Nostrand Ave, Jersey City, NJ 07305$1,7502 bed2.0baJan 2018

Lower-priced listingApartment137 Wilkinson Ave, Jersey City, NJ 07305$1,0502 bed1.0baJan 2018

Higher-priced listingCondo40 Constitution Way, Jersey City, NJ 07305$2,7001,200 ft²2 bed2.0baJan 2018

Average-priced listingDuplex46 Walnut St, Jersey City, NJ 07305$2,3001,298 ft²2 bed2.5baJan 2018

Average-priced listingApartment16 Stegman St, Jersey City, NJ 07305$1,4002 bed1.0baDec 2017

Average-priced listingCondo7 Tribeca Ave, Jersey City, NJ 07305$1,8502 bed1.0baDec 2017

Average-priced listingHouseLinden, CT & Linden Ave, Jersey City, NJ 07305$1,5001,250 ft²2 bed1.0baDec 2017

Average-priced listingHouse11 Linden, CT, Jersey City, NJ 07305$1,5001,250 ft²2 bed1.0baDec 2017

Higher-priced listingCondo4 Constellation Pl, Jersey City, NJ 07305$2,9501,510 ft²2 bed2.0baDec 2017

Average-priced listingCondo15 Cherry St, Jersey City, NJ 07305$1,9991,286 ft²2 bed2.5baNov 2017

Average-priced listingHouseKennedy Blvd & Mc Adoo Ave, Jersey City, NJ 07305$1,5001,200 ft²2 bed2.0baNov 2017

@Naeem Barbour welcome!!! 

If the goal is to buy a house hack, start building a plan now to house hack You don't need other investors.

1) Understand financing options and get approved.

       - if you have a job, walk into any bank and ask about home loans.

- you will need 3.5% via FHA or 5% via conventional for down payment.

       - example: $3500 at 3.5% for a $100K property. $5000 at 5% for a $100K property. 

2) Once you know your budget/approval #, you can locate areas in the city which are in your price range. study the area and get to know property values, new developments, attractiveness for potential roommates, etc.

3) Craft a plan for attaining the down payment/closing cost needed.

4) Contact/locate a broker

5) Start making offers

6) Close.

Good Luck!

I see People ask all the time where should I invest. Figured this is a good article to share.. I definitely have issues with the state & city, but no where is perfect.. My advice... relatively cheap yet strong economy (disagree if you wish) ;-) https://www.marketwatch.com/story/where-the-moneys-made-and-where-it-isnt-from-coast-to-coast-2017-09-26?link=sfmw_fb

@Jimmy Ready The Pro membership of rentometer has a more detail summary of the comps by property type and addresses included. 

I compare with craigslist, hotpads, and zillow as well. Actual look at the compas and see how finishes compare to your property. I always use a discount factor of  5%-10% from advertised rents for analyzing the deal to leave room for error/market changes.

good luck