Small profitable rental in NB

[Jairo Paredes]

Investment Info:

Condo buy & hold investment in North Bergen.

Purchase price: $158,000
Cash invested: $50,000

1 bedroom condo in upper North Bergen. Tenant in place with good payment history. Rent covers all expenses. 9.6% cash on cash (CoC) return.

How did you find this deal and how did you negotiate it?

On the MLS. Made on offer over asking price on day 1 of listing. The numbers made sense.

How did you finance this deal?

Paid cash at closing. Refinance in progress.

Lessons learned? Challenges?

Offer was made right before the state shutdown happened. I offered over asking price b/c the numbers were good because of the high rent. Going forward, I will add a contingency for pandemic like changes on society that may or may not sway the RE market. Something that would allow flexibility to renegotiate should the market decline while under contract.
Add a contingency with the rights to assign contract to my spouse in the unlikelihood of death or decline in my health/mental capacity.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Derek Gomez from ReMax Villa in North Bergen, NJ.