All Forum Posts by: Julian H.

Hi Stephen - Thank you.  I look forward to everything BP has to offer.  Has BP aided you in obtaining any deals?  

I hope so as well, very excited.  Thank you Orion.

Julian

Hi All - 

My name is Julian, I've been perusing through the BiggerPockets forums for the last couple of months and have begun listening to the podcasts as well; both excellent sources for real estate.  

Currently, my wife and I are looking to build our asset column (Rich Dad Poor Dad was a great read, wish I read this ten years ago) with some cash flowing property.  We're looking to execute this within the NJ or boarding PA towns (i.e., Easton, Bethlehem, etc.).  we're looking to start off by purchasing one to three properties within the next two years and scale up to hopefully 15 in five years.  We both have full time jobs, so eventually, we'd be looking for a property management company to step in to free up our time for acquisitions. 

As for real estate experience, most recently, my wife and I purchased our first home home just over three years ago for a really good deal, we've remodeled, and are enjoying the equity.  Also, I was a licensed real estate agent from 2003-2006; really young, but the education was invaluable.  As you can guess, I got out right before the crash.  

I look forward to meeting other members to interact and grow not only our portfolio, but network, and resources as well.

Julian    

Don't know how far into the deal you are, but also verify (if you haven't done so already) the vacancy of the entire complex and HOA fee trend. Julian

It looks good to me, I'd move on it if it were me. You have the cash on hand or are you obtaining another way?

I'm also interested in condos and looking forward to the replies on this one as I'm from New Jersey. What is the typical rent down there in ocean county (if that's where the purchase is taking place) for a two bed one bath condo? I would imagine somewhere around $1,200 to $1,300 a month? Are you factoring in just a little over a months worth of vacancy per year? Also, what appliances are you obtaining and how old are they? If everything checks out and nothing needs to be replaced while assuming a monthly expense of $830 (assuming $1,200 a month rent), it's not that much of a return out laying all that cash. Please keep in mind I am a newbie, so I look forward to other way more experienced members to give their input. Julian

Bump...again

Bump...

Hello Everyone –

This is my first post here on BP, looking forward for some great discussions as well as ideas. My wife and I are looking to begin our real estate venture with this property as we purchased at a great deal (please see below for break down):

• Property Type: Cape Cod, 3 beds, 1 bath, semi-finished basement, 50x100 lot.
• Purchase Price: $115,000
• Closing Costs: $10,000
• Comps at purchase $199,000
• Loan amount: $92,000
• Interest rate: 4.66% (fixed)
• Term: 30 years
• Taxes: $7,000

Our property was purchased before we got married back in November 2013. Since then, I have renovated the bathroom and master bedroom while adding new electrical panels (main and sub) as well as pluming throughout the home. In addition, I had a buddy of mine install a new furnace and central air system (utilizing the original duct work from the forced hot air system). All of these renovations costed about $22K since I did the work myself with the help of some talented family members (except for HVAC). I removed the plaster walls in the master bedroom and bathroom, but the rest of the main area (living room, dining room, and kitchen) still have the plaster walls with no insulation behind them. I also, gutted the semi-finished basement as there was wood paneling against cinderblock walls with no wet lock or sealant (causing white mold in some spots). So the basement is bare and open. I ran plumbing for a future summer kitchen and full bath already when I did the plumbing throughout the house.

Now, after getting married and moving in about a year and a half ago, my wife and I are ready to begin our real estate venture. Since purchasing the home, some things have changed, we both have full time jobs that are very demanding and I have another business that consumes my time as well. With that being said, I never strayed from the idea of investing in real estate, as this has always been a dream of mine and my wife’s, but time is precious and a contractor will be utilized.

I have read some great forum discussions here on BP and we’re looking for some input as to what you think is the best approach in utilizing this property and adding another to our portfolio fairly quickly. Keep in mind that we want to stay living at the property for a couple of years after the renovations as the in-laws are close by and will be a great help with a new born.

Thus far, we’ve taken out a line of credit for $130,000 (appraised value was $270,000 two months ago), with an interest rate of 3.5%, and we still owe $78,110.34 on the house. We’re planning on finishing the basement which will add a full bathroom, summer kitchen, door to outside, living room area, and French drain with sump pump (sealing the walls too). In the main level, were doing a new kitchen, removing the plaster walls, and adding sliding doors to a new deck (14x16) out back. Upstairs we’re sheet rocking the two bedrooms and finishing the space above the garage to create an office. Also, sheet rocking the garage as well as the existing walls are not worth the trouble to patch up. Lastly, the windows are about 20-25 years old so we will be replacing them too.

Please see below for the breakdown:

• Current state appraisal value: $270,000
• Value after renovations: $330,000 (using a 2 mile radius)
• Mortgage debt: $78,110.34
• Credit line: $130,000
• Credit line fee: $100

Interest rate on credit line: 3.5% (can freeze rate three times)

Labor quoted by contractor: $50,000 (doesn’t include window replacements as not yet quoted)

Materials: ??? figuring about at $60,0000

So, what are your thoughts? We look forward to the analyses and discussion.

Julian