Would this be a good deal for buy and hold in the NYC metro area?

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I apologize to the Sheboygan and Cleveland keyword alerts. Sorry =)

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Why is it important that the property be in the NYC area? If the numbers don't work, they don't work. The reality will probably be worse. I reserve an additional 8%~15% for maintenance depending on the property. When you take that into account, you're definitely in the red. By contrast, I invest in projects in Philadelphia that are close to the universities. I am building new construction. All-in my costs are about $102,000 per door. Rents are $1,250 per month. With a 10 year tax abatement, my cash flows are about $1200 per month for a 4 unit building. I'm able to refinance the project within a year at 70% loan to value and recover 100% of my invested cash. Would I stop doing these projects and buy your NY property? No. Focus on creating the right team in the right location where you can create a stream of investment. Deals can be easily created from there. I'm not preaching, just sharing what I do. Hope that helps. V.

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It is really sweet that you are wanting to help your family member. However, I really think that buying a house for them to live in for a few years ( I am assuming that you are considering this a temp situation since you are running numbers for after they move out) is not a good idea. It would be much better for them to rent a house right now.Consider this alternate scenario: what if your family member rented a house. And you invested your money in a different market with better ROI. You could buy a house that actually cash flows a few hundred dollars per month and that is in a location that is more convenient to where you are located now. You could use this cash-flow to help out your family member with rent for a few years. Once your family member is back on their feet (same time frame you were thinking that they would move out of the house), you are left with a house that was actually a good investment in a location that is better for you!Also one more thing, think about how a strain it would be on your relationship if your generous gesture ends up being a money pit for you...

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@Hasan Hamdan Definitely checked out those areas, however, having a yard and a garage were pretty important (to my family member). I couldn't find anything in those areas with even a little grass to them.

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I would look into Jersey City and West New York, that is where a lot of action is. Newark as well but it is important to do a higher amount of due diligence there. Purchase price in Newark will probably be cheaper as well.

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@Mala S. I would be breaking even now and being that positive cash flow is nearly impossible in the NYC area, my thought process was that breaking even is good. And I agree with you that the numbers don't work in North NJ / NYC Metro area SFHs. I was originally looking into duplexes, however, after speaking with my mortgage rep, I am able to put 10% down on the SFH as opposed to 25% on the duplex. I understand... that I could take the same money and invest in Sheboygan, WI or Cleveland, OH and get a couple hundred dollars a month. I suppose I should keep looking...

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@Mark Langdon It is looking that way. I think it would be a shame to see this property go for 175 when the neighborhood is comping 250+. Possible flip? I could take my time doing the minor work to be done while housing a family member? Two birds with one stone...

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Numbers don't work. Move on to the next potential deal. You will be happy you did instead of trying too hard to make this work.

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Yes, you would really be counting on appreciation for this deal to be able to break even in 5+ years, which really depends on the neighborhood and even block and is still a risk. I don't know much about Essex County neighborhoods. You should speak with someone who knows the neighborhood well. Hopefully someone on BP will chime in.Personally, I think you can do better than this and I would keep looking. I am currently in contract for a duplex in Hudson County and therefore spent the past several months researching and looking at properties in the area. The conclusion for me was clear that multifamily is the best way to go in Hudson County. The numbers just don't work with SFR. I don't know if it is similar in Essex County, but if you haven't tried it yet, you should run the numbers with multifamily properties in that area.

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@Louis Leone You are 100% correct on the property taxes. Luckily, there was a recent assessment done that lowered the taxes significantly. I probably wouldn't have pulled the trigger on this property had the assessment not been done.