All Forum Posts by: James Stokes

Thank you Amy A. for your encouragement.

@Zachary Foust Yes, I found it on the MLS.

I just rented out my 2nd property in Pleasantville, New Jersey on September 1st. It is a 1,368 sq. ft. 2007 2 story colonial foreclosure. Check out my 1st post about the 5 kids & 3 jobs. I am closer to firing one of my bosses. When acquiring the property, my 2nd set of twins were still hospitalized in the NICU. I disclosed that information because I could have easily stopped looking for properties and used that as a valid excuse. It pained me that I was not able to be at my kids’ bed side daily, due to working multiple jobs to provide for the family. Also, being chained to the rat race (job) and not being able to have the choice to manage my own time was frustrating. That was my “WHY”. But, being committed to my family and financial freedom fueled my “Why”.

Here is one of multiple failure learning events that I had encountered. I didn't do all of the research on the property. For instance, I didn't get the actual property tax amount. Yes, I asked the realtor for the updated property taxes, but received 2015's tax amount. I could have easily blamed the realtor for not providing the correct numbers, but, I am the investor and it is my responsibility to get the numbers. FYI, I don't use that agent any more. That failure event threw my ROI for a loop, along with other failure learning events. Thanks to BP I had enough margins in the deal to still make a profit. Solution: follow the BP process and check, verify, check again. Also, I will be contesting the taxes.

Even thou I did not make the ROI on the property that was desired, by taking action, my learning and understanding increased and I am more confident with moving forward on the next deal. I've found my Freedom Number thanks to (@ClaytonMorris) and the BP podcast. I'm currently reading, listening to podcast, analyzing deals and placing offers. I have a new agent that understands my investment criteria and is willing to view multiple properties. I hope this post inspires you the same way that I've been inspired to turn into my NEW ME.

Here are the numbers. Feel free to give suggestions to increase my success in real estate investing. I purchased the property for $87,000. I put 25% down, paid closing cost, rehab and carrying cost. My all in was $35,160. I rented the property for $1,465 per month.

$804.03 PITI
$41.67 Sewer bill
$146.50 Property Management (self)
$146.50 Cap Ex
$73.25 Vacancy Rate
+$58.60 Utility/Misc$1,270.55
- NOI-$1,465- monthly rent
$194.45 Net Profit Income per month x 12 months = $2,333.40 Annual Net Profit Income

Total Deal
Appreciation: $14,000- (38.25%) ARV was $101,000
Depreciation: $2,345.45- (6.3%)
Amortization: $984.58- (2.68%) 1st year loan pay down
Cash Flow: $2,333.40- (6.64%)
*Property Management: $1,758- (5%) I self manage

had script issues with bp website, could not rotate pics.

@Jamie Wooley and @Brook Copeland thank for the encouragement and support. It's truly tiring, but I am determined to live life on my terms. 

@Jessi HillCongratulations!!! I can't wait to hear about your rental.

James

I believe I learn the concept that, your property will attract the type of renter. My goal was to place a Semi-premium product to the market place. There are many rentals in my area. But, presentation and sales are everything. Also, you'll start knowing the people that are not serious after your open houses. Currently, I am available on biggerpockets. I make an attempt to check my account, at least 3x a seek. Best of luck to you.

James

@Tinu Matthews, I would go through the paper, ask a friend or go to home improve to find your contractors. I would meet with about 4 and select your contractor out of that pool of individuals. Remember integrity is important.

James 

@Jimmy Moncrief, @Tanzeela Qureshi @Adam T. Veitenheimer thank you for your encouragement. 

@Corey Wilson It took me about 2 months of weeding through multiple deals.