All Forum Posts by: Lamont Chen

@Giridhar Kumar Looks like option A will save you more money especially if you do not expect much turnover. If you have a 2 bedroom+ (3 + preferably) typically if a small family moves in they tend to stay for a while vs a 1 bedroom or studio.

@Abraham Lozano Congrats on deciding to jump into this world of real estate investing.

In no specific order I would say starting out you should:

1. Figure out what market (local or out of state) you may want to start getting into to get your feet wet. Folks tend to spend lots of time analyzing and not jumping in although you should only jump in after performing due diligence.

2. Learn what expenses you should typically expect and calculate deals often if not daily to see if they may be worth it (rent vs vacancy, repairs, capex, property taxes, home owners insurance, hoa, etc.)

3. Figure out what you can afford whether it be local or out of state as there probably would be different financing options (owner occupant, vacation home, investment property, etc.)

Once you have a good idea of the above you can probably start reaching out to an investor friendly realtor and begin the hunt!

Good luck!

@John Smith

Keep it up! In North, NJ even fixing up places and renting them out may not cash flow but there are other aspects like depreciation, appreciation, future rent appreciation, etc. which will help your deal long term.

@DelVaughn A. You can check with your accountant but depending on the laws for your state if you recently lived in a home X years you can sell without paying capital gains tax up to a certain amount. For NJ it is 250k for individuals and 500k for couples.

Also if you are selling a investment property you can 1031 exchange to another property so you do not pay capital gains tax.

@Brett Murdock

I am not familiar with MS but I could do some research and get back to you. Since you are in the area, you have a competitive advantage to look and manage the properties. If you find something which the numbers and location works then go for it!

@Brett Murdock 1% rule is a good sniff test depending on your area to see if a deal will make sense. After you find the property you should try to calculate more detailed expenses like property taxes, vacancy, repairs, utilities, etc. Other due diligence you should perform would be regarding the location, economics for the area, etc.

In certain markets you may not be able to get 1% (NYC).

@Anthony Marin

Nice! Was your application to further sub-divide a variance? Always a risk for investments but glad this investment worked out for you (good eye!).

I am working on new construction now and permits, building plans, etc. takes a long time so I feel you on that point.

@Christian Bill Can you list out what questions you are looking to get answered?

I am based out of North, NJ focusing on investments with NYC transport. If you have specific questions in my area feel free to DM me.

@William McMurray You can confirm with the lender whom you may be working with but I have a new construction home closing in March 2021 and my lender let me know that I qualify for the $548,250 limit.

@Dan Benjamin You can try to level set with the agent whom you are working with to let him know what you are looking for. Blasting a huge list of multi-family properties is not really productive and is a waste of your time and theirs.

In terms of valuing what a property should sell for, your agent should be able to provide comparative sales in the area for a similar home and provide an estimated cap rate investment properties go for in that area. A combination of these 2 should get you a ballpark estimate hopefully of what you may want to offer.

Besides these aspects, agents come in handy during the negotiation process w.r.t. contingencies, etc.

Hope this helps and good luck!