All Forum Posts by: Allen C.
Allen C. has started 2 posts and replied 15 times.
Post: Newark, New Jersey - 3 Family househack analysis request
- Creative Problem Solver
- Jersey City, NJ
- Posts 17
- Votes 5
I have no rehab experience yet, preferably as close to move-in condition as possible, so that the units can be rented immediately.
Post: Newark, New Jersey - 3 Family househack analysis request
- Creative Problem Solver
- Jersey City, NJ
- Posts 17
- Votes 5
Thanks @Gilbert Ross Jr!
Would you consider the deal if money was forced into it (20% down ) to lower the total loan amount? 20% down would make it cashflow positive.
Post: Newark, New Jersey - 3 Family househack analysis request
- Creative Problem Solver
- Jersey City, NJ
- Posts 17
- Votes 5
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!
Post: Contractor/Architect Hudson County New Jersey
- Creative Problem Solver
- Jersey City, NJ
- Posts 17
- Votes 5
@Chris Daliani PM Sent re. Architect
Post: BRRRR Question
- Creative Problem Solver
- Jersey City, NJ
- Posts 17
- Votes 5
Originally posted by @Mikael Winkler:
Lance,
Thanks for commenting. Yeah, with an OO duplex my realistic goal is simply to "live for free" - I understand even with a larger down payment it will be difficult to cashflow.
The reason I was going to utilize FHA is that I don't currently have that much upfront capital for a conventional down payment. FHA would allow me to get into the property and the rehab/refi would get me into a conventional mortgage. That's just how I'm leaning now; however, I may just try and save for the larger down payment. We shall see!
I'm on the same boat! I'm sure it's much more easier to come across a deal in you're market. We have the highest property taxes here in NJ which kills cashflow. But the search for a deal continues, while saving for the larger down payment.
Post: Looking for a mentor
- Creative Problem Solver
- Jersey City, NJ
- Posts 17
- Votes 5
Thanks for the re-assurance @Sergey Tkachev! I am competing in a such hot market, I need to remind myself this when ever it seems as if I can never find a deal!
Post: Networking NJ investors / Wholsalers
- Creative Problem Solver
- Jersey City, NJ
- Posts 17
- Votes 5
Let's connect. Which neighborhoods of Jersey City are you targeting?
Post: New member from New York City
- Creative Problem Solver
- Jersey City, NJ
- Posts 17
- Votes 5
Welcome to BP @Cheri I.! Jersey City usually has rent control on anything that has 5 or more units.
Post: When the next real estate bubble will happen--an economists prediction
- Creative Problem Solver
- Jersey City, NJ
- Posts 17
- Votes 5
@Mike D'Arrigo I'm tuning in! The market I'm in is bubbling up as we speak.
Post: Want to save money on repairs and services for your properties in NJ?
- Creative Problem Solver
- Jersey City, NJ
- Posts 17
- Votes 5
@Darren Sager +1 for Hudson County!