Newark, New Jersey - 3 Family househack analysis request
Good day to all!
I am considering a househack in the North Broadway neighborhood of Newark, NJ.
Comps range from $295k - $325k (from dual agent that I showed me the property).
The property is a legal 3 family with a bonus unit:
Unit 1 - 2br/1ba = $900 (occuppied)
Unit 2 - 3br/1ba = $1200 (vacant)
Unit 3 - 3br/1ba = $1200 (vacant)
Bonus Unit - 1br/1ba = Owner Occupied
Would you do the deal base on the following numbers...Feedback would be appreciated.
Annual Gross Income - $39,600
Annual Total Expenses - $19,728
Vacancy - 5%: $1980
Tax: $5777
Ins: $1500
Maint - 5%: $1980
Repair - 5%: $1980
Property Mgmt - 10% - $3960
Utilities paid by owner: $2544
Electricity (common areas): $264
Water/Sewer: $1800
Lawn/Snow: $480
Annual NOI: $19,872
Purchase Price: $295000
- 3.5% Down: $10,325
+ 5% Seller Concession: $14,750
Total Loan Amount: $299,425
Annual Debt Service: $19,416
Principal/Interest - $1416
Mortgage Ins (FHA) - $212
= $1618/month
Returns
NOI - Debt service = $456 Annual Cashflow
- $792 (2% of Annual Gross for Cap Ex Reserve)
= $ -336/yr
Thanks!