All Forum Posts by: Diana Tian

@Marisa R. thank you for sharing! The numbers look really good even without factoring in the potential appreciation. I am trying to learn more about Detroit. I just looked at zillow and redfin. The housing prices vary a lot street by street. I checked a couple of houses on line in the east english village. The price is low but I don't know anything else about it. What is the best approach to study the area ?   

@William Gomez I can't say for sure. But it sounds like a good buy. There are some research you may want to consider -  are there an oil tank, any open violations and ect? 

@William Gomez it sounds like a great deal! What is the lot size? Just to give you an idea of the market. We have a listing coming up in that area, asking for $599k (average condition, no major repairing needed) and it is priced to sell quickly. 

@Marisa R. Thank you!!! I started looking at the Detroit market. The deals look very attractive. I haven't done anything out of state. Not sure if they are enough room to outsource everything. After all the expenses, how much are you keeping? 

@Sebastian Garcia a lot of investors are buying in union city.  If you are the first time home buyer, be careful with buying as is; check with city for any open permit or violations right after the offer is accepted. The city takes time to provide documents. When you are looking for fixer- uppers, just keep in mind that union city takes very long time to approve permit or pass inspections. 

You have a good budget for the area; you should be able to find things in a decent condition.

@John T. if the house is going to be under LLC, you usually need to put down 25% for investment property. But for primary, you could do 3.5% at lowest.

The tax reporting may be different as well. For example, If you are using the place as primary home, you could save on capital gain tax when you sell it. But it will get a little complicated if the place is under LLC.

@Ellen O'Neill One way to look at it is if you don't live there and rent the whole unit out, could you break even or cash flow positively? 

Congratulation on your purchase! The price of $800k for 3 family in union city sounds a little high. I think your house may be new or renovated. The $2000 rent for 1 bedroom is very good. On average, the rent would range from $1400 to $1800 for a 2 bedroom and 1 bathroom unit in an okay condition house. 

It is hard to find deals that meet 1%  rule in Hudson county. 0.75% sounds okay. The Cap rate of 6.5% sounds good but i am not sure if you deduct all the operating cost. 

Usually landlord pays for water and sewer. if the heat or electricity is not separated, i have seen landlords split that bill. I usually pay for everything that is not separated, it is ideal just to separate them. 

It sounds like your house is under rent control. Then it is hard to  increase the rent more than the registered amount.  

@Robert Rubel you could look into North Jersey (hudson county and bergen county).  there are a lot of new development coming up in the area. It is very close to Manhattan, by bus, ferry and path train. i dont know much about bergen county. for Hudson county, people are talking a lot about Jersey city, Union city, Bayonne and Harrison. in those cities, you see mostly two family houses, ranging from 350k to $650k for an average house.