All Forum Posts by: Alex Jacob

I have been reading a lot recently about how hard it is to buy a property in New Jersey that produces adequate cash flow or even positive cash flow.

I am about to make an offer on a property in NJ and so this sentiment has me nervous. After running my own analysis I see this property is significantly cash flow positive but I can't help but feel i'm blatantly missing something. The numbers are as follows...

Offer Price: $275K

Units: 6

Rent per unit: $800 ($4,800 per month total)

Vacancy: $480 (10% of Gross rents); Maintenance and Repairs: $480 (10% of Gross Rents); Capex: $350; Taxes: $917; Insurance: $833

The tenants are paying for utilities separately so there's nothing budgeted for that. I am not sure what to expect for common area expenses to be fair.

Mortgage: $898

Total monthly cash flow of $842.

Any insight on what I am missing?

Thank you everyone for your referrals.  I now have one less thing to worry about Lol.

@Edythe L Wicker  Do you mind giving me your broker's contact?  

the property I went to see was paying almost $5500 for flood Ins and an additional $5000 for Liability  this was a legal 5 family with 4 apartments in the main building and a cottage adjacent.

Hi Vic,

I would be so grateful if you can put me in contact with your broker.  Truly appreciate your help.

I am having a hard time finding insurance companies that insure properties owned under an LLC. Anyone in this forum can suggest names of insurance companies that offer insurance to LLC properties? My property is located in Central New Jersey. Any suggestions is greatly appreciated.

Hi Eric, I am curious if you ever did invest in AC and how are things doing now during this pandemic?  I am curious to know if any of the investors that bought property a couple of years ago are still doing well during Covid-19 and if they still feel strongly about investing in AC going forward after the pandemic as the recovery might take a long long time.  The problem with investing in AC is the extreme high taxes and high flood insurance.  It's discouraging because I do love Atlantic City and would have loved to invest there if the taxes and flood insurance where a lot less.