All Forum Posts by: Jeffrey Edmiston

@Keith W. Hey Keith I work for my fathers plumbing company in south Jersey. He has been in business for over 25 years and has a great reputation. Reach out to me if you have any questions or need any help. I am currently getting our approved to buy my first rental property.

Hello I am seeking help on who you use to have a quit claim deed made. I spoke with a real estate attorney but he said that he doesn’t do a lot of them and there can be potential tax issues. He recommended that I speak to a CPA s as well as a estate planner. I thought a QCD was more common and easier tbh.

@Chase Louderback

Yes I would like to manage the property myself and get some experience. It’s actually listed on Zillow so I could go take a look at it.

@Angeline Mentor

Hi Angeline, I did some basic math to try to figure out an estimate of what the rents are based on the gross income. If those numbers are close then the rents are under market average IMO

@Chase Louderback

Thank you, I need to do a few steps to get a more accurate assessment is what it seems. I guess the first step would be to contact an experienced broker?

@Bjorn Ahlblad

The broker I know is more of an acquaintance, I’m not sure of his experience with owner finance. I say I don’t think I’m ready because lol of inexperience. But if I had someone to help/partner up and it’s a solid deal, then I’m in.

@Nick Schoch

Ok Really appreciate all of your help!

I have a friend that is a RE broker in the area so I’ll ask him these questions.

Thank you!

@Nick Schoch

1. The property is in southern nj in an area with quite a few rentals.

2. I briefly looked into the rent control for nj and found that it’s 4% if tenants pay utilities and 4.5% if owner pays utilities. I’m sure there is more info I should know but that was me taking a quick look.

3. The owner did not specify any terms, I only saw the listing for it and haven’t gone any further than that. I’m sure I would need to ask these question and do some digging. I was hoping I could get a rough estimate before finding all of that out. (That is probably a poor way of thinking)

4. Median rent for s 2 bedroom is $1263

3 bedroom is $1677

5. I am unsure how to find out the vacancy in the sub market

6. I do not know what turnover looks like, I haven’t inquired about the property. Only looked at the listing.

7. I don’t know if it will be reassessed, I’m not even sure of the estimated value.

8. I don’t know about the tenant profile for that property (of that’s what you were asking). But I’d say that immediate area is a C area.

9. From the limited pictures I’ve seen, I don’t know if I would but I know I’ve personally lived in worse as far as appearance and me assuming a few things.

Thank you for taking the time

So I found a property that I’m curious about. I don’t think I am in a position to buy it but I’m very curious if it is a good deal, so that if in the future I come across something like this again, I would be better informed to possibly move forward. Thank you in advance for any help!

Property is 2 separate buildings on 1 lot/deed

Corner lot on heavily trafficked main rd

2-4 miles from expanding college university

1,100 rentals in area and 3,300 renters aprox

Which is struggling to keep up with the demand for rental properties.

1st building has 7- 2 bedroom 1 bath apartments. Tenants pay electric and possibly gas

2nd building is a twin with 2- 3 bedroom1 bath units. Tenants pay all utilities inc water & sewer.

The taxes are $11,505/year

Tax assesed at $300,000

It’s rent controlled

100% occupancy

Built 1900

15% cap rate

Property has newer roof

Asking price $699,000

Owner wants to do owner financing

I have no info on what the current rents are but I’m pretty confident that end rents could be

$1000 per 2 bed 1 bath units ($7000 total)

$1200-$1300 per 3 bedroom 1 bath units possibly more. I’d say these numbers are conservative. ($2,400-$2,600 total)

Estimated income potential $9,400/month

I’m am new & learning so I don’t even know how to properly analyze this property. I am unsure of the overall condition of the building & inside of the units because I am just going off of what’s written on the listing. My goal is to better understand how to assess this property and know if it seems like a good deal or not. Again, thank you!

Thank you everyone! Really appreciate the love, I will definitely be attending a local REIA very soon!