All Forum Posts by: Lior Solomon

Thank you @Ibrahim Hughes for the the detailed response.

The house does have a driveway(just for one car) with no garage. and the house was built around 1950.

I understand that the price is a little high. I'll see if that is something I can change.

Thanks again,

Lior

Thanks @Erik Pedersen for the feedback.

From a quick look I ran on that street it seems that most of the properties on that street are estimated for around $160-165K

As for the why? if you are asking why going for a turnkey project, then its mostly because I don't have the time/will to do it myself. I don't mind paying some extra money as long as the numbers works for me.

I do agree with you that $179K is a little high and I am planning to negotiate this.

Last purchase of this house was for around $100K so I guess the margin the middle man is looking for is a little too high.

What do you think about the neighborhood?

Thanks!

Hi everyone,

I need your feedback on this property I've found. please bear in mind that:

a. I'm a new investor looking for my first deal.

b. I'm not that familiar with Newark and I need some location feedback as well.

From a quick research I ran it seems that Weequahic neighborhood is an up and coming neighborhood. the safer part of it is between Bergen street and Weequahic park. The property I'm looking at is in the corner of Bergen street and Mapes Ave. Any objections so far?

As for the property analysis:

2 unit, 2500 sq

Purchase price: $179K

Rent roll $34,200

Gross income $31,350

Total expenses $11,920

Net operation income $19,430

Net after mortgage $7,743

Cap rate 9.91%

Cash on Cash 17.44%

I'm going to put a down payment of $44K for the mortgage.

It's a turnkey project, the house is going to be purchased after the house is fully renovated and populated with tenants.

I'm paying 10% for management(same guy that renovates the place will do the PM)

It sounds like something modest to start with, there is a big hospital next by and a police station in the end of the street. it's also a 11 min drive from the Rutgers University.

What's concerns me right now is how do I protect myself from a case where the guy that sells me this turnkey project for some reason can't accomplish the renovation and we already settled for the property price after renovation? I guess only paying the full amount after completion of renovation will do the job, right?

Thanks in advance,

Lior

Hi @Jessica Soares

I'm also new to RE and looking for MF deals in NJ. Unfortunately I'm not familiar with Newark and I've heard more then once the city has some interesting deals going on.

Can you share some info about the neighborhoods you are looking into?

As for Jersey City it seems that the prices are quite high and the return isn't that great. What is the cap rate you are looking for?

Thanks for sharing...

Lior

@Cory T. that's really awesome. good luck!

Welcome @Cory T.

I'm also a newbie from New Jersey totally excited about the bigger pockets community.

Totally an invaluable source of information for REI newbies such as me and a great place to network with more investors.

Can you briefly share what's the plan behind the vacation rental? Are you planning to manage it yourself or with a PM? What was the reason you decided to start with a vacation rental etc...

Thanks!

Lior

Thanks @Tiger M. I never knew about narpm, I'll give it a shot.

@Lisa Phillips thanks for the detailed reply. I will share with you the numbers I have on a private message.

Lior

I can just add that I'm also looking into Baltimore for investment and couldn't get any PM companies return my call or emails though I went through all the list coming from http://irem.org

Luckily I got some phone numbers from members here in the forum and I have a good family relative that is willing to help so what is what I'm working with right now.

Can you share what were the rates you were asked for from the PM companies you worked with? is there a first month down payment? etc etc.

Thanks,

Lior

Thanks @Justin Rickson

I will look into it

Lior

Thanks @Justin Rickson

Are you familiar with any PM companies in that area?

Thanks