Updated almost 10 years ago on . Most recent reply
Garden Apartments
Do you think it's profitable/good investment to buy a single garden apartment unit with the goal of renting it out in a very rentable area of north new jersey (where i live). The unit sells for roughly $150,000 and the average rent in the area for this type of unit is between $1250-$1500 per month.
Approximate mortgage details- $30k down, $550 per month in mortgage for 30 yr fixed.
Additional information about myself- 33, single/no kids, regular income, currently living in a rental for cheap. Zero real estate experience.
My thoughts- I would be investing approximately $230,000 (not including expenses) over the course of 30 years with only $30,000 down. If it rented for $1,250 nonstop for all 30 years and never increased the rent, i would gross $450,000 (1250 x 12month x 30 years). Plus I would own a $150,000 property (assuming the value never changed in 30 years which is very unlikely).
Can anybody provide feedback on whether or not I am greatly under-simplifying this, or if I have a basic common sense approach to getting started with investing. Thank you.