All Forum Posts by: Sunny Shakhawala

@Johnathan Boyle I agree. Definitely not looking like a good deal at currrent metrics. 

Plenty of financing options are avail to me currently. 

• Cash
• Private lender
• Seller financing (broker finding out if this is an option tonight)
• Conventional
• Fha @ 3.5 down - wouldnt mind living in this area for a year tbh.

Hey BP Community,

Disclosure: I have yet to buy my first property. I need to get moving because the high from my first deal (private money lending) has totally worn off. 

So...

Just got off the phone with a Broker with a 4-Fam listing in NE NJ. 

Here are the property details I was able to get over the phone / listing / research:

• Asking price: $600K
• 4 units - 2/1 each
• Taxes - 9700 
• 100% Occupied
  • Long Term tenants (some as old as 1990s) - this seems like a negative more than a positive depending on how much they're paying.
• NO Schedule E available
• Brand new roof put in 3 years ago
• Rental comps look like 1200-1500 based on finish
• Separate Utilities (all: heat, water, electric)
• Off-Street Parking as well as Street Parking

The Broker was stressing to me that the rents were severely under market. However, he won't disclose the rent roll until I come see him on Monday. Maybe he'll have me sign an NDA? (Owner doesn't want info getting back to tenants - understandable level of paranoia)

Under market rent was music to my ears. Because I'm going to offer based on actuals. Not potential.

Based on the asking price of $600K, I'm 99% sure it's priced based on potential. He also told me its a 6.5 Cap so that means it's currently netting 39K per year OR he sees a potential of 39K per year after rent increase. Again, I won't find this out until I go see him Monday. 

At the end of the day, I don't think I'll get this property, because my model likely won't allow me to pay close to ask. But that's not going to stop me from analyzing and submitting an offer.

Another good thing from making the call: the Broker has a lot of experience with MFs (2-20 units) in the surrounding area and wants to better understand my criteria - so I guess I'll have another pair of eyes and ears looking for an investment for me. 

Hey Everyone,

This topic has been explored before, but I'm hoping to make some connections out of this post.

Basically, I'm trying to use my first home loan as a house hack in Northeast NJ. 

I do business in Riverdale & Pine Brook. My wife works in Secaucus.

Ideally we can find a 4-family home in the Little Falls area. (West of Route 3).

This includes towns in Passaic County like: Clifton, Woodland Park, Totowa, Wayne, & Haledon.

I can also explore a few towns in Essex County: West Orange, Verona, Fairfield, & The Caldwells.

If there are any realtors out there that specialize in Small MF (2-4 Units) and can send some listings my way, I'd love to take a look at them.

Here's what I'm looking for:

• 4 Units: 8-12 Beds, 4-8 Baths
• Separate utility in place or opportunity to convert
• 3 floors maximum (2 floors preferable)
• Off Street Parking (4 - 8 spots)
• Cost + Rehab = 400K or Less

This is my first post on BP so play nice. I realize this might be an unrealistic ask, but my network of realtors is limited to cousins who do it part time, at best, and the guy who sold my parent's their home back in 2001.

@Jeff Schroeder - any updates on your experience with Elite Invest? Looking forward to an update! I'm considering them as well.