All Forum Posts by: Theodore Tasoulas
Theodore Tasoulas has started 8 posts and replied 17 times.
Post: Listing yourself or using an agent
- Jersey City
- Posts 17
- Votes 5
Hello BP,
We recently tried to list our apartments ourselves instead of using an agent, but we could not get enough applicants so we went back to the agent.
We spent over a month listed on multiple national sites like realtor.com, apartments.com, even Craigslist. We had several people interested, but never paid the application fee. We even emailed interested applicants to complete the process, over 40 I believe.
In the last few weeks since the agent took over, there have been more completed applications and now a couple of showings. Looking at the applicants, they are coming from the same sites we had listed earlier.
Granted we were listing in February, but it is only March now. Any ideas how the agent is getting more leads than we were when it appears he is using the same channels?
Post: Exit strategy issue - to cash out or not to cash out
- Jersey City
- Posts 17
- Votes 5
Quote from @Andrew Postell:
@Theodore Tasoulas ok, so what you learned on this property is completely worth whatever you "left" in the property. Remember, you didn't LOSE that money...it's just equity in the property. So that's not bad. Now, of COURSE if we could do it all over again we would do it differently but now we have to tackle the issue at hand. So let's cover some things here:
1. Is the debt amount detrimental to your credit? Meaning, if you have good income, or if the debt is to a family member, or maybe a few other scenarios...then there's no real reason to pay it off aggressively. I mean, you can if you want to but there are plenty of scenarios that would argue to keep the debt in place.
2. The main priority when you own properties is that you have enough "reserves". Every single financial planner on earth will tell you to have enough funds to cover 3-6 months of bills. Make sure you have this money BEFORE you start paying down debt. There's been plenty of examples of people assuming they would pay down the debt...and then use it in an emergency...who found their limits REDUCED after they paid the debt down. So don't assume you will have access to that credit amount later. Save that 3-6 months of "reserves" first.
3. If you do have to start paying down the debt for certain reasons then we need to decide on HOW to pay it down. And yes, there are methods in doing this. So if you have mulitple cards with debt, then focus on taking down the smaller cards first. Target paying them down to 70% of the limit first, then 30% of the limit second. There are lots of articles you can research on this topic that go further into this strategy than I will here.
Having to wait a few years to buy another property seems really bad at first but it will be fine. There's even good strategies that talk about a "5 year plan". You can read more about that HERE.
Anyway, I hope all of that helps in some way. Feel free to post more if you like. Thanks!
Thank you for the detailed response! Indeed very helpful. To answer:
1) It is all on business credit cards at 0%. Downside is that we have to switch cards every 12-18 months, which is doable but leads to next point. We would need to open more business cards/lines of credit to do this, and also to have ability to renovate the next place as most current cards are near limit.
2) 100% on reserves!
3) Yes, we have a card pay down strategy as per above—paying down one card at time, switching cards to 0% offers, opening new lines when needed.We could definitely do this paydown strategy, but we'd really like to close the loop on this property and have it cashflowing so we can reinvest the CF for more deposits.
Post: Exit strategy issue - to cash out or not to cash out
- Jersey City
- Posts 17
- Votes 5
Quote from @Matt Devincenzo:
What type of debt is the 'extra' 10K? What's the plan with the 4th unit? Does it make any sense to rehab that unit now and re-rent in 2-3 months and pursue your refi then?
The reno costs are on 0% business credit cards.
Not really, the 4th unit tenant is a lifer and doesn't want it renovated, but that wouldn't add much more cash flow anyway.
Post: Exit strategy issue - to cash out or not to cash out
- Jersey City
- Posts 17
- Votes 5
Hello BP!
We have a 4 unit with an exit strategy issue. 3 of 4 units were renovated—doubling rents and bringing to market rate, but we now have 30k in debt that we want to remove from our ledger. The appraisal is stopping us from a true BRRRR, only pulling about 20k out, which is an issue with higher cash flowing lower appraisal areas (lesson learned). Options are below.
1) After a cash out refi, we would still have to use all the cash flow to pay down the remaining debt for nearly two years.
2) If we don't cash out, we are at 31 months debt pay down if we use all cash flow.
3) Use reserves to pay off the 30k, but we want to use this for purchases.
Any ideas or feedback appreciated!
Post: 4 Unit Renovation Strategy
- Jersey City
- Posts 17
- Votes 5
Looking for answers from the BP collective brain trust.
We have a 4 unit for under 100k with rents around $450 each for 3 of 4 units all on month/month leases. All 1BR/1 bath around 550 sq ft. One unit vacant ready to renovate. Apartments are dated with carpets in decent shape, but would need to be updated if current tenants move. Market rents are around $550-600 —about $2,200/month income with strong cash flow. Basic renos (LVP, paint, bath upgrades, appliances) are about $8,500/unit. If we renovate all four, I don't think property would appraise at that amount, so we can't do a BRRRR.
We are not sure on the best move. Thinking to renovate the 1st unit and then test rental market at $600, and raise the other units to around $500 to 550 depending on how long of a lease they sign, but wary of extra vacancy.
Any feedback appreciated!
Post: I need help with my firs brrrr!! Allentown area.
- Jersey City
- Posts 17
- Votes 5
@Dilelvi Mejia How is the project going?
Post: Jersey City/Hoboken meet up
- Jersey City
- Posts 17
- Votes 5
@Danielle Humphreys
Time to start live meet ups again. So tired of zoom. Anything live in JC area?
Post: Investment property in Jersey City, NJ - Need advice
- Jersey City
- Posts 17
- Votes 5
@Haixia Yuan
JC has been really hot. Journal Square is a good area and lot of construction. One critical metric will be cash flow-prices are so high that you need to find good deal to make it cash flow after expenses. Be sure to run numbers if you house hack to make sure it will cash flow when you leave as well-I was having that issue. Rent by the room brings great return if you can manage it. “Cheaper” areas like Bergen Lafayette and McGinley Square are really appreciating and you get slightly lower rents.
Ditto what was said about down payment requirements if you don’t live there- will be 20% or more.
Post: Issues with cash-out refinance
- Jersey City
- Posts 17
- Votes 5
Trying to cash-out refi on a long-held property and bank is stating there is 75k mortgage from the 90s with no documentation its paid off. Have refinanced same property since then with no issue so not sure why. How can I get the documentation to show the bank?
Post: Jersey City, NJ Multi Family Deal
- Jersey City
- Posts 17
- Votes 5
@Luis Savery Killer deal!!! One year living and do it again!