All Forum Posts by: Sankalp Pandya

In order to determine whether this is a good deal for you or not you need to first get very specific around your REI goals i.e. are you looking for appreciation/cash flow/COCROI or any mix of the three? Once you get that in place figure out what criteria must be fulfilled in a deal that will work towards that goal. You may at first set very unrealistic criteria without realizing but that's ok just adjust accordingly to what you are comfortable with/willing to take.

Have you worked out what the cash flow/COCROI is? Do they meet your criteria of what you are looking for in a deal? Are you willing to take on the risks based on the description you have provided regarding the location? 

People can give their opinions on the deal but they won't mean much if you don't get super clear. 

Hi Ruchik, 

I have made the same observation as you regarding MFHs in North Jersey. From looking through past topics posted in the NJ forum around this same point and reviewing some case studies of other investors which started out in this area, I have determined that it is very unlikely to find properties that meet those criteria you have stated (especially the 1% rule). By the rare chance you do find that type of property that meet those criteria chances are new investors like us are unlikely to beat out more seasoned investors who can pay all cash unless we act extremely fast and/or outbid there cash offer. I want to emphasize that although this does sound grim its not impossible. 

I'm assuming you are planning to house hack a MFH? If so what you can do is take a loss for year 1 and move out to free up the other unit and see what the numbers look like for year 2. I don't know if this feasible because I don't know your situation but this is definately a good way to atleast get into the North Jersey market. I don't know much about the appreciation in North Jersey, but I don't think it's that great? What have you come across? 

I'm still new to all this as well so I'm most likely overlooking some aspects that hopefully a more experienced investor could share!

Trying to understand if what I'm observing is just because of the current competition in the markets or if it's always been like this, but currently, whenever I find a property in Bergen/Passaic county and try to arrange a viewing through my realtor I find out that there are already a couple of cash offers being made. This is in a matter of a couple of hours from when the property is listed. 

Which made me think are other people really making offers without viewings? Am I missing out on some contingencies that allow these people to make offers that give them protection to then walk away without at least having the initial viewing? 

Maybe they are lucky and are able to get exclusive access to the property?