All Forum Posts by: Orkeem Davis

@Brian Liscio

I would interested since I own a few properties in North Jersey.  Please keep me posted.  Thanks!

Update - we agreed on 4% rate for 8 years and are suppose to close this Friday.  The present owner will hold the note and mortgage.  Two (2) of the tenants' lease agreements expire in 4 months so their rent will be increased.  Right now, the mixed use property is bringing in $1500 in rent rolls and hopefully after the 4 months, the rent rolls will be increased to $1900.  The mortgage payment (principal and interest) is around $1350.  The seller and seller's attorney are trying to have me pay for the seller's lawyer fees since he drafted the agreement.  I said "no" and we are trying to get on the same page.  Thanks for any feedback. 

The property is a 3 unit - store front, 1st floor 1 bed bath, and 2nd floor 2 bed 1 bath -- $1500 monthly income.  The owner owns free and clear and willing to carry mortgage. 

I offered full asking price of 125k with 10% down @ 0% rate for 8 years 

Security Deposit - $500 

Financing $112,000

Principle - $1186

taxes -$300

insurance - $81

Monthly payment - $1567

Rent rolls can not to changed or increased for another 6 months.  After 6 months, I will more than likely receive an additional $400 to $600 in rent increases, but not guaranteed.  Rents are really low and still waiting for Contract approval.   Appraisal will be a little costly, but required from me to know value prior to closing.   Closing costs, down payment, appraisal will cost around  $18,000 to $20,000.  Is this a good deal for me if approved?

@Anthony Gayden

I believe if you are green and just learning the RE business, you should start locally.  Learn the business then expand.  I think expanding is great, but take baby steps initially.   

Put up 15k in order to make $20.00 monthly.  Run for the hills.  Not enough cash flow and unexpected problems do occur, i.e. broken pipe, plumbing concerns, etc.  The negatives outweigh the positives --- Not a good deal.  

All of you in the same boat need to continue to build up your money and for the time being learn more about RE investing and educate yourselves.  Knowledge is key and I'm sure there are some decent opportunities in your local areas -- check Craigslist daily, speak with real agent agents about investment properties, go to meet ups, etc.  Develop a game plan and then pounce.....your do diligence will pay off. Good luck!!

Update - I met with a licensed roofing company and they assessed the need for a new roof and informed me that the roof was only missing soffits and fascia.  He will replace for only $250.00  No new roof required at this time.  Small job and no real money to dish out or finance at this time for this particular property.  Thanks for all the great feedback.  

@Samantha Klein -- I like this approach too!  The property is located in South Jersey, not North Jersey, so it may be cheaper overall for the roof job.  I have set-up 4 appointments today and me and my wife, my business partner, will make a decision.  Thanks for all the feedback, I will provide additional follow-ups soon. 

The company willing to accept labor costs only was actually referred by a family member who used this company's roofing services before.  

@Arlan Potter - thanks for the feedback.  Makes sense and this approach can save a lot of $$$$.  I like it.