Hey All, so I need some advice on whether or not this is a good enough deal to stick with it through all the chaos that is currently COVID19 in the NJ area. i went into contract on a duplex (first home I plan on living in 1 side) in Boonton NJ (morris county) just days before everything shut down. My job is secure but I'm currently not making anything until I go back and I'm slated to close on the property end of May.
The situation is I'll be left w/ about 30k in reserves once i'm in the home. I paid $450k for the property (2br 1bth per side), the top floor apartment rental comps are about $1600 /month. The unit I plan to live in would get about $1800/month. Mortgage payment w/ insurance, and taxes comes to roughly $3200 /month. ($200 cash flow once I'm out)
I feel like i'm over paying a little for the property but it's getting a fully renovated apartment + new roof down to the studs, and an unfinished potential 3rd bedroom in the basement of my unit that can be finished over time to eventually get more rent.
Taking the emotion out of it, do you think this deal is good enough to go through with the contract given the circumstances? Or is the deal too thin of margin in the first place and I should back out and find another property once the dust of COVID19 has settled?
Thanks in advance for any advice you might have.
