Newbie from NJ - Condo evaluation

[Alex Clift]

Hi BP.  Newbie from Hoboken NJ.  Love all of the info on BP.

Would love some thoughts on a condo I bought last April.

Purchase price:  $505k

3 bed 2 bath

I put $125k down

Mortgage/Taxes/Insurance/Maintenance:  $3000

Currently rented for $3400.  Could probable get $3600 when the lease expires in July.

Real estate agent thinks I could get $615 for it now as the market is hot for 3 bedroom condos in my town.

While the condo as appreciated quite a bit in just a year, it's not a great return for the amount I had to put down.  The mortgage is a 30 year fixed at 5%.  It's not backed by fannie due to local condo rules so I can't refi for a better rate.

I'm happy that's it's appreciated but torn on what to do?  Do I keep it?  Sell?  Roll it into another deal?

Thanks

[Andrea Coar]

Hi Alex,

Welcome to BP! You've definitely come to the right place looking for advice. I would recommend using your equity to get another property. Don't Sell!! Hoboken is HOT! I'm a Real Estate agent in NYC and I am in school now obtaining my New Jersey license. I will be working at Weichert Realty in Hoboken. Maybe you could find a cheaper property in Jersey City or Bayonne. I live in Bayonne and it's such a cute town with tons of investor opportunity. Your Hoboken condo will continue to increase in value. Definitely raise the rent in July. Also, check out TV Bank. They have pretty good rates in our area for HELOC. Best of luck!