All Forum Posts by: Maggie Dolan

thanks again, Joel!

I am not too concerned about the water costs. The duplex has new plumbing. There is no ability to wash cars as there is no hose near the driveway. Also, the washer and dryers are coin operated so I don't think tenants would abuse this.

I do think the rents are appropriate for the area. One unit is a 1BR 1Ba that has been receiving $1200 in rent. The other unit is 3 BR, 2 Ba with a backyard. I actually think that is a below market rate.

I would prefer a marginal cash flow with potential for strong appreciation.

Thanks, Joel! I appreciate your input. I would prefer a 3 or 4 unit but we haven't seen anything that we like. I am concerned about occupancy but the place is in very nice condition in a great town.
My husband calculated about a mid 8% cap on the duplex. It seems close to impossible for finding a 10% CAP rate in the areas I am looking at. I do see potential for appreciation on the back end. The house sold in the 400s in the mid 2000s and I think it will get there again. I wouldn't mind smaller cashflow and then sell when my kids hit college.... That said, I fear not generating enough to service the mortgage. Yikes...this is stressful!!

I still need to get a lot of this information. This is very preliminary. I estimate homeowners at around $1,500. Landscaping would be $0. Very small property and we live close enough to do it ourselves. No management company. Tenants pay utilities except water (probably about $1,00/year). The smaller unit is rented for the past 6 months. The larger unit is not rented as the tenant just moved out and the owner is hoping to sell without having to find a tenant. It does not appear that any rehab is needed. New furnace, new kitchens, etc. It's a very nice area near a park, easy commute to NYC in a nice town....

So, my husband and I are looking to purchase a Multifamily investment. We live in Northern NJ where prices and taxes are high but so are rents.

Here is a property that I am considering in a very desirable town, with many good transportation options to NYC. What do you think of this deal?

2 family home.
Target price of $285,000
Taxes: $8,400
Rents: $2,900 total per month ($1,200 and $1,700)

Property is in good shape. If I put $75K down and take out a 30 year loan at 4% rate, my P&I is $1,002 and taxes are $700 a month.

I'm new to this and so overwhelmed by all the various calculations so am interested in receiving some expert advice!

Thanks all! Yes, I am torn between the LLC and individually owning it. While we don't have major assets to protect, we have some. Also, I am a lawyer and am naturally risk adverse. On the other hand, my husband is in finance and is more bottom line oriented and apparently there is less cost to owning individually. We will figure it out. Thanks again for the info and the welcome!

Thanks for the welcome and the info, Chris!

By the way, I love Somerset county...so pretty out there! We considered relocating out there but decided to stay put to be close to work.

Hi All -

I'm new to BP. I currently own a home in Northern NJ suburbs (Essex County) with my husband and we have 2 young kids. We are looking to invest in a multifamily investment property in northern NJ. Ideally, we would like a 3-4 unit place but would consider 2 if the price were right. We are primarily interested in certain areas of Essex County (e.g. Bloomfied, Montclair, Caldwells) but there is very low inventory right now. We are also considering Jersey City.

I look forward to learning more from more experienced investors and sharing my experience here.

2 quick questions:

- I see a lot of listings that says "has green card." What does that mean?

- For those you have Multifamily properties, do you hold it individually or in an LLC?

Thanks!