Flip near train station to NYC

[Josh Thompson]

There is a single family home for sale around the corner from the train station in Rahway New Jersey. It has been on the market for several months and the price has been reduced by $20,000 to $78,000. Based on the pictures alone it needs cosmetic work in every room (floors, paint, etc.). I do not officially have any comps from an agent yet but believe in good condition the property could sell for 120-150k. I’m just concerned that it may take a while to sell based on the current time on market. If I do take action on this deal I will need hard money to fund nearly all of the deal but most of the work can be done by myself and a friend.

My questions are... is the time on market indicative of a problem with the property/price or just a lack of investors in the area? What Can I expect as far as closing costs and other expenses involved in purchasing and selling (New Jersey). Is it a bad idea to use hard money on a property in a not so good neighborhood but close to a train station (40 minutes to NYC)? How much money should I have saved of my own before I invest?

This is the first property I am seriously giving consideration so any input is greatly appreciated. For anyone who would like to look up the listing, the address is 1275 Georgia st, Rahway NJ 07065

[Brian Pulaski]

@Josh Thompson do you have any experience working on houses from the late 1800s? I imagine you plan to fix and flip this, would it be for a rental or for an owner occupied? I know nothing about that area, but see some houses around the corner selling for/sold for quite a bit, however this house looks buried in with commercial type property. It sounds like you have someone working on it, but you need that ARV much tighter than $120-150K. That's too large of a swing for that low of a sales price.

My honest opinion, that house needs more than cosmetic fixes in each room... Whenever I see baseboard heater covers strewn about, I assume there were issues and you are probably looking at a new boiler/WH. Has the electric ever been updated, if not, what is in the house (fuses, knob and tube, etc)? Do you plan to leave that in place? There are some issues I see with the siding near the roof that could be nothing (the discoloration would bother me, even after you fix the "bubble") or could be hiding underlying issues.

All in all, maybe it has some opportunity, but I would be out there looking it over with a fine tooth comb.