Deal or No Deal? 4 Family in Northern NJ

[Jay Costa]

What does everyone think of this deal? It is on the MLS here in NJ. The seller is older and inherited the property so they want a clean and quick deal. I was thinking of coming up with the cash with my partner, renovating, and then refinancing after the work.

It is a 4 family that is old. Built in 1925. All brick. $725k asking price but may have to go higher. Each unit has 1 indoor garage spot.

2 units that are 2 BR 1 Bath vacant $2200 Estimated Rent w garage

2 units are 1 BR 1 Bath vacant $1400 Estimated Rent w garage

These rent numbers are with very little rehab work. Could get much more with new kitchens, bathrooms, paint, floors. If you put new kitchens, bathrooms, paint, floors, you could get much more for each unit.

Taxes $13,333 per year

Tenants pay electric

Landlord pays gas and water $5,000 per year sound OK?

There are 6 gas meters so I am thinking it is possible to reroute plumbing and add furnaces for each unit in order to have tenants pay.Insurance $2,500 in NJ it is pretty expensive.

Let me know your thoughts