All Forum Posts by: Leah Gaspard

 Hi - sorry for the delayed response. I learned the property is STILL on the market (shocker) listed at 460K. My rental numbers came from doing a quick zillow search. I find that in  this particular area rent and home prices tend to vary, and it seems that what makes the difference is number of *bathrooms* not bedrooms. So if there is only 1 bathroom (even though it's a 3 bedroom apt, it wouldn't differ much  from a 1 bed or 2 bed with 1 bathroom. I will do another check to see if rent prices have changed any, but that is what I've been finding so far. 

@Jaysen Medhurst thank you for confirming. I'm struggling in this area to find properties that will provide positive cash flow — no shocker, of course. But, even in theseor "C" neighborhoods, I'm finding the prices on these properties combined with the property tax are more suitable for people who just want to buy a home and not invest. They probably just want the equity and "help" paying PITI. On some property tours I've also seen large families who probablyjust want to share the home. Very frustrating for a first-timer working alone. Out of state investing is looking more appealing.

@Jaysen Medhurst thank you for confirming. I'm struggling in this area to find properties that will provide positive cash flow — no shocker, of course. But, even in theseor "C" neighborhoods, I'm finding the prices on these properties combined with the property tax are more suitable for people who just want to buy a home and not invest. They probably just want the equity and "help" paying PITI. On some property tours I've also seen large families who probablyjust want to share the home. Very frustrating for a first-timer working alone. Out of state investing is looking more appealing.

Hi BP - I'm looking to make an offer on a MF - my first purchase ever. I'm wondering if my inputs/estimates are accurate, bc I can't seem to get the cashflow. Asking price is 399K. 

Note that I am in the NY tri-state, and the home is walking distance to a train that goes into NYC (about 30-45 minutes).

I intend to live in one unit and rent out the other, and make cosmetic updates/ minor repairs while I live in the unit. Any advice/suggestions welcome! 

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*This link comes directly from our calculators, based on information input by the member who posted.

Thank you for that, Anthony. I wish the 1 bedroom below was a 2 bedroom so I could get more rent out of it, but unfortunately the numbers won't make sense at the price the entire property is going for. the cashflow once both units would be rented would be either too low, or maybe negative. I could hope for appreciation in order to charge higher rent in both units, but that is too risky. I should note that the home was fully renovated -- had it been a more worn-in property, I could've probably gotten a better deal. 

@Theresa Harris thank you.  Im currently paying 1880 in rent a month. I also thought about living in first floor unit while renting out the top floor. Bc property tax is high (and not too bad when I think about essex county property tax in comparison), it still wouldnt cover monthly expenses. I will keep looking for a “hack” that makes better sense

Thank you @Steve Hall . Unfortunately, yes rents in northern NJ can be easily 1700 depending on the city/neighborhood. And unfortunately, My PITI exceeds 1700. Property tax is about 8000 in the area. I would basically use the rent obtained from the unit to put towards the payment, but it wouldnt cover it all. I guess basically the only benefit would be gaining equity (and of course living in a spacious house with a backyard and driveway.

I thought maybe I could flip it and live on the one-bedroom and rent the upstairs larger unit for 2000-2200. Again the rent would only cover a portion of PITI. I appreciate the input. I couldnt make the numbers work... if it was 2 family with at least 2 bedrooms in both units as opposed to one, it might work out better

Thank you for the feedback!

I'm considering a property that's marketed as a 2 family with 3 bedrooms and 1 bath upstairs, and what is actually a 1 bedroom apartment on the first floor (there is a finished basement, but can't be utilized as a living space if that makes sense). 

When I enter estimated potential rental income for the top floor (2000) and 1st floor (1700) and a garage space I can rent for storage (100) my cash-on-cash percentage is in the negative (about 11%) and monthly cashflow is -$100.00. Since I'm not putting 20% down, I would be paying PMI with a conventional loan.

However, should I consider that if I plan to live in the top for unit and rent the 1st floor for 1700, after several years (assuming 2% increase in property value/rent) I should be able to hold the property without a loss, and have my tenants help me pay the mortgage. 

I am a newbie obviously, and want to know if I'm thinking about this the right way. Should I like to forecast my c.o.c return or is that too risky? 

Getting started in an expensive market (Northern NJ). I would ideally purchase a two-family, which are abundant, but I have concerns about the B/C neighborhoods I'm shopping.  

Hi everyone,

I am a fresh newbie to real estate as a whole. Never owned my own home. I am looking to purchase my first primary residence in the next 3 months. I learned about BP from another forum, and have been listening to the podcasts and watching some YT videos. I am gathering information before I enter the real estate world. Ultimately I want to invest, but right now I’m trying to figure out what my first step is. I guess this is my first step!

I’m hoping to connect with likeminded folks who can share their perspective, especially looking back to their early days in real estate. Oh, and I should mention that I’m based in an expensive market, Northern New Jersey, where a very modest home can run around 400k depending on thr school district! 

I look forward to connect with you all!