Elizabeth, NJ Analysis

[Christopher Castiglia]

Hello BP Community,

I am a first time poster, and excited to start connecting with some other investors!

Currently, I am analyzing small multifamily properties in Elizabeth, NJ (particularly northern Elizabeth where the neighborhood is a bit nicer), and striving to house hack by living in one of the units and renting the others.  I am searching for insight on some average costs I might expect in the following categories:

1. Water

2. Sewage

3. Garbage

4. Snow Removal

5. Lawn Care

6. CapEx (I recognize this one could be particularly tough, but any advice would be helpful!)

P.S. I am very green (looking to invest in my first property), so please excuse me if any of these are obvious questions.

Thank you in advance for the assistance!

-CJ

[Angel M.]

@Christopher Castiglia

Welcome to BP. I’m born & raised in North Elizabeth, and think it’s a great area of Elizabeth to invest in. IMO north of Fairmount Ave is a solid B, south of Fairmount is less desirable. I’m currently house hacking my 2nd duplex (my 1st duplex is fully rented out now).

1. Water

       – Figure $100/mo for a duplex

1. Sewage

   – $0.00, included in water bill

1. Garbage

   – $0.00, included in property taxes

1. Snow Removal

   – buy a shovel J (luckily the tenants shovel themselves at the rental, and I just shovel after work at my house hack. I do break out the snow blower for both properties for a big snowfall.)

1. Lawn Care

   – buy a lawn mower J (I pay $100/mo during spring/summer/early fall for the rental, and cut my own grass at my house hack)

1. CapEx (I recognize this one could be particularly tough, but any advice would be helpful!)

   – I don’t have a good answer for this one. Can get a ballpark idea by estimating the remaining life of the big ticket items (roof/boilers/water heaters/kitchen appliances). Home inspector should be able to help with this before you buy. Then you can make a rough projection.

You didn’t mention Electric & Gas bills, but hopefully both are metered separately and paid directly by the tenant. I would also throw in 5% vacancy & 5% repairs/maintenance