Newbie evaluating first deal in Newark, NJ

[Bruce Faulk]

Hi BP'ers,

I have made my first foray into the world and spoken to a seller on a property  I am looking for Buy & Hold Cash flow- below are the basic stats,; any advice, thoughts are appreciated- what questions should I ask before paying for an inspection, has anyone invested in this area- Newark, NJ?  Thank you!

Listed for $195,500

Multi family home built 1910 (yikes!)

2 apartments and two renters who have been in place for a long time

1st floor 1 bedroom 3 years 

2nd floor 2 bedroom 10 years – section 8

$1700  total in rent

Already section 8 approved

Seller is retiring. Investor who lives in PA. Looking for buy-out, rather than income

Put in a new water heater. Normal painting, carpeting, just redid the backyard put down new sod. Yearly contract with landscaper.

Taxes a little over 3k annual.

This looks like a dog at the asking price but maybe at 95-125k?

Thanks!

[Ibrahim Hughes]

Rents are too low. 2 fams in Newark, unless are in decent areas like North newark (upper roseville section and has parking), ironbound, etc. are being evaluated primarily using their rents. You're paying way too much for this property. Your 95-125k number sounds about right.