Newark NJ - 2 Family - Good Deal?

[Fran Rivera]

Hello,

I am working on my first deal to get a 2 family home in Newark from a friend of a friend. I am just analyzing the deal to see if it makes sense. I live in NJ and I am familiar with the area. 

Zillow estimate = $250k

Rents = ~1200 per unit = 2400

Owner owes bank about $150k - Can i negotiate with the bank? Offer say $100k

Needs alot of work. Flood damage and furnace is not working.

I still need to see the place, but before that I want to see if it even make sense.

Here is what I came up with, just guesses for now. Please let me know if I am missing something

Thanks!

[Dan Barli]

@Fran Rivera, I would caution against using Zillow for an accurate estimate on the property. Have you spoken with a realtor to get a CMA done on the home? If you are looking to negotiate a lower payoff with the bank, you are essentially asking them for a short sale. Is the current owner delinquent on the mortgage payments? If they are current, are they just looking to get out and willing to bring cash to the table to close?