All Forum Posts by: John Walter

@Christopher Prince-Barry When I've seen this in the past, splitting utilities was written into the lease. For example, the larger unit would be responsible for 60% of utilities, and the smaller unit would be responsible for 40%. 

That said, when I encountered this issue, I just called the electric company and had them install a new meter. As the owner, you're responsible for water for all units anyway (I assume) so that shouldn't be a worry. For me, PG&E is my utility company. I contacted them about installing a new meter, and a few months later, voila, they set everything up and the tenants can call to have the utilities entered into their names.

I am still new at this. That said, I am of the mindset house hacking is the best way to get started. I have been saving up money for over a decade (had a couple major bumps in the road along the way), but am finally ready to get this party started.

My plan is to have six doors in the next year (most likely two triplexes). I am in the process of closing on one property at the moment, and plan to put an offer in on another either this weekend, or early next week. With everything going on, I am anticipating at least one of those deals falling through (hopefully not both), but for now I am still pressing forward.

Thank you all for the input. 

@Alina Trigub The property I am looking at is a triplex. Most of the properties in the area are are duplexes; however, there are a few grandfathered triplexes. This apartment is in the beginning stages of construction and with Gov. Murphy advising that construction is no longer considered an essential business, I can't think of a way of finding out exactly how many units this will be or the exact type of apartments they will be. If I were to guess, they won't be "luxury", but class B.

Hey @Lloyd Preece were you looking for anything specific? I work in NYC and  live/invest in Bayonne and Elizabeth, NJ. 

Let me know if you have any specific questions. 

I am considering putting in an offer on a MFR in NJ. The neighborhood has a ton of investment pouring in the past few years, and the city's plan makes me think property values will continue to increase for the foreseeable future.

Case and point: There is a brand new apartment complex being built next door to the property I am purchasing. Will this increase the property value of the neighborhood, decrease it, or have a minimum effect?

@Charles Pallas Closing costs can be a bit tricky. Depending on the type of loan, type of house (new construction, etc), the company you’re going with, if you’re buying points, etc. they can vary drastically. 

Conservative numbers are always best when plugging in numbers. I wouldn’t use anything less than 3%, but that’s me. When shopping for lenders, be sure to ask for an itemized loan estimate. This breaks down their charges and hidden fees. To be honest, they’re usually pretty reluctant to ever hand this over (above what is required by law), so be persistent. 

Watch some of the webinars on here. Brandon usually goes through an example that he finds online and plus everything into the calculator. He’ll typically explain what he uses and why as well, which is extremely helpful. 

Hey guys. Glad to see you're motivated. Hustle can take you a long way in this world, but if your plan is to sit back and wait for someone with tons of experience to find you, drop everything, and teach you everything, I think you're going to be waiting a long time.

Get out there and make it happen. Find a RE group, increase your knowledge, house hack. Listen to the BP podcast show # 371 with @William Brown. In the show he discusses how he partnered with someone and then was relentless in his search to find deals. In a relatively short period of time, he managed to become one of the best wholesalers in the game, but not through waiting for it to happen.

The best advice I can throw out at this point is instead of looking what others can offer you, find out what you can offer others. If you're adamant about finding a mentor or partner, figure out how you can bring them value and then do it. I can't recommend that specific show enough. If you really want to become a wholesaler, listen to that show.

@Michael Malzacher Welcome to BP!

From your profile, I could not see what area you are in or near. Put that in your profile and try to connect with some people around you who can help you gain insight into your area.

No one is going to be able to let you know if you should quit your "W-2 job" and do real estate full time, but if you're saying you are working and you still have a lot of extra time, then use that to learn. Read books, listen to podcasts, browse the forums, even take a class or two on different aspects of real estate (there are plenty of free ones online).

Also, you mentioned the BRRRR method, but are you looking at single-family or multi-family, have you considered house hacking? Clearly define what it is that you want to achieve and then work backwards to figuring out to get there. For me, I wouldn't quit my day job without a set in stone plan, but that is my risk tolerance; yours may be vastly different. I think step one is figuring out exactly what you want and go from there.

Hey @Charles Pallas which part of NJ are you looking in? I’m in the Bayonne/Elizabeth/Newark area and investing in multi-family units as well. 

Do you have any specific areas you’re uncomfortable with? You obviously have a sense of construction, so if there are any specifics let me know. Other than that, get comfortable running your numbers. Make sure you’re accounting for items such as vacancy and capex, and read the ultimate guide to screening tenants. I imagine you'll do that part yourself, as you’ll be house hacking. You’ll want someone not only qualified, but that you’ll be comfortable being in semi-close quarters with. 

Possibly the greatest topic on BP. 

Had a property appraised recently (my first in NJ). This is for a new construction triplex. I receive the appraisal report and I'm reviewing the comps and am appalled. I notice a tiny asterisk located next to the "rent" section of the comps and start searching through the entire packet to figure out what that is for.

I finally find a small sentence that (in sum and substance) reads: if actual rents are unknown, it is up to the appraiser to determine the rent. This appraiser was from Ohio, which has a vastly different rental market than here. Especially when apparently all three comps were 3/2's that were supposedly bringing in $1,400 a month. I haven't seen those type of rents for a brand new construction in this area in....I don't know 6, 7, 8 years. A new 3/2 in the section I am in, you're looking at about $2,000 - $2,200 a month. But, that's what I got.