All Forum Posts by: Marcin G.

Yes I'm planning to manage this property myself. It is only 18 minutes drive from my house which is very important for me. For lawn maintenance and snow removal I have $1,200/year, do you think this is sufficient?

I am looking into purchasing my first investment and I would appreciate your input before I will pull the trigger. 

A little info on my background which I think is very relevant to my investment strategy:

I work full time job which I really like in New York and would like to get my first buy and hold property. I strongly believe that buying a rental investment makes the most sense for me if it is located as close as possible to where I live. This way I can keep a close eye on the property and to start - manage it myself. I am quite handy and can do a lot of small to medium fixes myself, for example I have finished a 650 sq/ft addition on our primary home and I have really enjoyed being in a General Contractor role. Of course, I have hired an architect and subcontracted bigger jobs like foundation, framing, roofing, HVAC and sheetrock install. But besides these I did the rest myself.

I am considering following investment:

I found legal 3 family house in rural area in Middlesex county, New Jersey. It is in the township which is known for really good school system (avg school rating on Zillow 7/10). I am hoping this will attract families which would like to stay and rent for longer term. I have run the numbers via Rental Property Calculator on BP and here they are:

Purchase Price: $460,000.00

Monthly Income: $4,200.00	Monthly Expenses: $3,593.20	Monthly Cashflow: $606.80	Pro Forma Cap Rate: 5.93%
NOI: $27,952.00	Total Cash Needed: $126,000.00	Cash on Cash ROI: 5.78%	Purchase Cap Rate: 6.08%

Total Monthly operating expenses:
Vacancy:	$294.00	Repairs:	$210.00
Water:	$100.00	Sewage:	$100.00
Insurance:	$150.00	P&I:	$1,722.53
Property Taxes:	$916.67	Misc:	$100.00

Please let me know if I am crazy to do this deal. 

My heart wants to do it, but I would appreciate any extra opinion.