All Forum Posts by: John DeRosa
John DeRosa has started 2 posts and replied 5 times.
Post: Cash-on-Cash Return Calculation
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Quote from @Jake Handler:
When I plug into CoC calculators, I start looking at year 5 and beyond because as a buy and hold investor, that matters more to me than years 1 and 2. With my strategy, un-calculable elements like location and population growth matter more than the short-term numbers. My advice is to make sure your approach is aligned with your goals which are aligned with your calculators.
I having trouble even bunting getting on base. Maybe I am looking in the wrong place or speaking to the wrong people but I have searched every night for months. Any advice on how or where to find a deal would be appreciated. I live in NJ and started to look out of state as NJ is becoming untouchable.
Thanks.
I'm new to real estate investing. I have been looking at several locations and am having a real hard time finding deals. I mostly look at the MLS and realtor or zillow.com. I talk to as many agents as I can; however, am having no luck. Has anyone used a cold calling service to find deals? If so, what has been your experience and do you have an recommendations?
Post: Cash-on-Cash Return Calculation
- Posts 5
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Thank you everyone for your input. This has been very helpful.
John
Post: Cash-on-Cash Return Calculation
- Posts 5
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I understand not every deal will be a good one. I started to fudge the numbers to try to make a couple work but I thought better of it. Who are buying these deals that are not producing returns better than 1% - 2%? I had to discount some 25% -35% just for the numbers to work.
I am looking in Hudson County, Union County and Middlesex County, NJ. Within my expenses I included: taxes, insurance, management, repairs & Maintenance, utilities, reserves and a small amount for administrative (legal & accounting). I usually don't include capex unless I see damage and I know repairs or a reno will be needed right away. Where do I find properties selling at substantial discounts? What are the most effective ways to finding deals?
Thanks.
Post: Cash-on-Cash Return Calculation
- Posts 5
- Votes 0
Hello
I am new to real estate investing and looking for my first small multi-family property (3-7 units) in NJ. I believe I have the COC calculation correct; however, the deals I am analyzing are not even close to the COC suggestion of 10%+. I am annualizing the rents for the property, deducting vacancy and expenses and calculating a Net Operating Income. I am then subtracting my mortgage (principal + interest) payment from my NOI to get my below the line NOI or cashflow. Finally, I divide that number by the amount I have invested (down payment + closing costs + any upfront repairs, etc.) to calculate the COC. Is that correct?
If that is correct, am I looking for deals in the wrong place? I am calculating COC returns of 1% or 2% at best.
Any help would be appreciated.
Thanks.