All Forum Posts by: JooYung Choi

Since it's the digital world, most homebuyers are shopping their next home through zillow, redfin etc. I would highly recommend professional photography as it will help your property stand out and attract more buyers to your listing. If you do not want to professionally stage it, virtual staging is a good cost effective way as well. 

Usually listing agents offer to pay for professional photography. I do for my clients and it makes my job a lot easier!

Usually 80% LTV is for when you are gonna live there as your primary residence. Normally it's 75%. Also would have to factor in holding costs for 6 months, which is usually the earliest you can refinance. I have seen shorter but the deal has to be really good for them to entertain it, also costs more points.

Only 5K of rehab budget? Sounds a bit too low. Are you sure that's all it will take to achieve your ARV? Since its tenant occupied, are they month to month? Will you be able to increase the rent on them? Will you be able to renovate while they are occupying the property?

Completely missed this email. Lauren, thanks for heads up! 

Hey Dominik,

Awesome that you guys are young, fiscally responsible and ready to jump into investing in real estate. 

I definitely recommend going with the buy option utilizing a low down payment loan like FHA or 5% down conventional. I also recommend looking into multi family homes, you'll be able to afford more / get more rent.

You won't be able to buy a home now. Spend the next 2 years finding / working a steady w2. With both of your incomes combined, the mortgage should fit in your combined DTI. Keep your expenses in check (no loans, no credit card debt, car loans etc). You're gonna need all the DTI available to you guys.

Now that you have a 2 year goal, save money for that down payment + closing costs together. 2 years will fly by so don't give up!

Good luck!

What is your motivating factor for investing in NJ? If it's for cash flow, there are other states that will yield more than NJ does. As you already know, property taxes are very high and throw in an HOA fee and you're left with very minimal cashflow. With your numbers, if you have 1 month of vacancy or a big ticket repair and you are now paying out of pocket for your investment.

You also have to do your due diligence with HOAs. Some might not even allow you to rent the home out or make you pay an annual operating fee to rent your unit out.

I invest in NJ for the appreciation as I plan to hold the property for the long run. Even if I broke even for the next 10 years, I know that I will be sitting pretty with at least 70K+ in equity in the right locations. I would highly recommend looking into MTRs instead of LTRs. There is a strong demand for furnished housing in North Jersey so I've been capitalizing on that and have been cashflowing nicely as a result. More work of course, but worth it for sure!

Piggybacking off Chris, to improve cashflow, have you considered switching to an MTR model? More upfront cost to furnish and more management required but you will get more cashflow

Explore the world of wholesaling! If you can get some distressed homes under contract, you would be making money and making connections with other real estate investors when you assign that contract.

Hire a cleaning service from time to time! They can check up on the condition of your home while keeping it in rent ready condition. 

What are renovated comps selling for in the neighborhood of your primary home?

I am assuming since you are buying a rental property, that is a 15-20% down payment + closing costs. You could use this money to renovate your current home and then pull a HELOC with the increased ARV to finance your next purchase.

You could then rent out your primary home and then move into your next home utilizing a 5% conventional loan. 

Of course there are some variables here. Just brainstorming with ya! Good luck!

Highly recommend this meet up! Quality networking