All Forum Posts by: John Papa

Ned, thanks for the quick response.

I factored in one month vacancy for each unit in the annual gross income (3,150 X 11 months = $34,650). Should I factor more vacancy? The rental market is very strong in this area and these units are very, very nice.

The numbers do look better when there is a downpayment, and I do plan on putting down 20-25%, which will cash-flow more, but I figured it would be best to show how the numbers looked before a downpayment.

The property itself is immaculate and needs no work whatsoever. I do plan on managing it myself, but you do have a point. Although, I will be managing it, I should factor in the cost of my time when managing.

I'm interested to hear what other people have to say. Would it be better to show the numbers with 20% down?

Hi all,

I'm currently looking at a two family duplex in the NYC tri-state area. This is a very desirable area with a lot of young professionals commuting to the city, and people looking to start families.

One thing that I've noticed is that properties in Northern NJ are so damn expensive, and the taxes are ridiculous! Given these factors it seems difficult to cash flow. How do investors in areas that are as expensive as the NYC tri-state area earn a decent cash flow?

Here are the numbers

List price: $365,000 (brand new renovation with granite, SS appliances, and hardwood floors)
Taxes: $9,711/year.
Insurance: ~$1,200/year
Water/Sewer: ~$450/year

Using very conservative rents given to me by my realtor:

Rent (separate gas and electric in each unit):

Unit 1: $1,350
Unit 2: $1,800 (could possibly get $2,200, but again, I'm being conservative).

Annual Rent(11 months to account for any vacancies): $34,650

Annual OpEx assuming 100% financing at 4%, 9,200 in taxes, 1,200 insurance, and 450 water and sewer: $32,316

Gross Profit: $2,334

I am going to make an offer for $335,000 and plan on putting 20% down, but I using the list price because I want to see if the property can cash flow without forcing profit with a money down. What else do you think I should be looking at? I'm aware of the 50% rule, and 2% but they seem to not even exist in my market...

Thanks everyone

John

Thanks to everyone for the warm welcome.

Ankit, thanks, and I'll probably take you up on that offer. All of this can be pretty confusing at first, so it's nice to be able have someone who I can bounce questions off of, who is also familiar with my area.

Regards,
John

Hello all,

I'm so thrilled to have stumbled across this site. It's such a wealth of information, I wish I found a couple of years ago.

As of now, I'm interested in multifamily buy and holds and am looking pretty closely at a property right now. First, I'm going to run the numbers the same way Brandon did in his webinar (that was so helpful btw) and afterwards, I'll be posting the numbers in the deal analysis forum.

I look forward to networking and building relationships with the great folks here.

Kind Regards,
John