Hi Everyone,
I'm looking into purchasing my first property, a multi-family house in Northern NJ to live in. My ideal scenario is to live here for a few years and eventually purchase a single family and keep this for rental income.
The house is currently vacant and already has 5 offers. It's been on the market for less than a week.
Here are the stats:
- List Price: $450,000
- Annual Taxes: $10,500
- Units: 2
- Rent Est Unit 1: $1500 (i would live in this unit)
- Rent Est Unit 2: $2500
Putting down 20% I estimate my PITI to be $2,771 (at 4.25%)
Positives on this property:
- Located in an "up and coming" part of town, where the town is in Phase 3 of a development program
- The second unit is two floors and has the bones/access to be split into two separate units with relatively minimal investment (basically adding a kitchen).. pending zoning approval of course
My concerns are that while the property certainly has potential, the current rent rolls are a lot more attractive in the 425k range than 450k.
Any thoughts/advice would be appreciated.
Thanks!
