Opportunity in the Newark area?

[Don C.]

Has anyone looked into the Newark area? Seems like a decent area to invest in. Here's a house that just came on the market:

2FH, 2BR 2BATH in one unit, 2BR 1BATH in other unit

asking price: $89K

purchase price: $71,200

down payment: $14,240

closing: $2,136

repairs: $10,000

total OOP: $26,376

Monthly Cost

PITI: $837

vacancy: $250

maintenance: $250

capEx: $125

Total monthly cost: $1462

monthly rent: $2100

monthly cash flow: $638

CoC: 7656 / 26376 = 29%

Does this seem too good to be true? Is $10K a ridiculously low estimate? I haven't had a home inspection yet.

[Kevin Ott]

Newark is on the up. Some neighborhoods are super hot with prices that don't make sense for rentals. You may also want to look at Harrison, North Arlington and some of the other towns that border Newark. Amazon announced today that Newark is on the shortlist for HQ2, so i think we can expect prices and rents to continue growing at a good clip, even if Amazon doesn't pan out.