Let’s assume renters, or you are paying $1,250 for half of a 2 family home.  Their apartment is likely 2 bedrooms with a full bathroom and a total of 5-6 rooms.  This is about the average.

In Clifton, there are plenty of wonderful 2 family homes for sale for under $300,000.  Let’s look at financing numbers.  Please call us for a financial breakdown on any 2 family home in the area.

Call us today for a free consultation on how you can own your own multi-family home, which is overall a great investment opportunity.

Conventional Financing a $300,000 multi-family home
$300,000 x 20% Down Payment:       $60,000 Down Payment

Mortgage Principal: $285,000

30 Year Fixed @ 5% rate : $1,288 Per month  (Interest is tax deductable)

Hazard Insurance:                           $100 Per month  (Tax Deductable)

Taxes:                                                  $625

Total Monthly Payment:        $2,013

So now we have concluded that your mortgage payment plus other required charges will run you about $2,013 per month.  Assuming you rent the unit you are not living in for $1,200 per month, this leaves you with remaining balance of $813, far less than what you are probably currently paying in rent on a similar unit.

Your risk is that your tenant moves out and leaves you with the entire balance to pay, which is why it is important to have a professional execute your lease so terms are “air-tight”.  If your tenant were to move out, you still have their 1.5 month security deposit which can compensate for the vacancy while you look for a replacement tenant.

Now you are paying LESS than what you were paying for rent!  It is important to use the rule of thumb and keep about 3 months of reserves handy.  On this home, 1.5 months of reserves would total about $3,000.  The only reason for this is in case of an emergency and for instance the water heater breaks.  Knowing that you  have a little bit of a reserve account will make you feel more comfortable anyway.

Whether you are looking for a 2 family home in Bloomfield, Clifton, Montclair, or any other part of Essex County, there are great deals out there.

Clifton is a larger medium-sized city located in the state of New Jersey. With a population of around 80,000 people, Clifton is the 9th largest community in New Jersey.

 

Be sure to visit our exclusive Clifton NJ MLS/IDX search to view all homes for sale in Clifton.  Please specify at the top of the search that you are requesting information from the GARDEN STATE MLS.

Unlike some cities where white-collar or blue-collar occupations dominate the local economy, Clifton is neither predominently one or the other. Instead, it has a mixed workforce of both white- and blue-collar jobs. Overall, Clifton is a city of sales and office workers, professionals, and managers. There are especially a lot of people living in Clifton who work in office and administrative support jobs (20.06%), sales jobs (10.81%), and management occupations (7.90%).

Clifton offers a mixed variety of condos, townhouses, a good number of multi-family homes, and single family homes.  All housing zoning is segregated in its own areas, which protects the value of real estate.  This means you will not have a row of multi-family homes with a single family home smack dab in the middle of it.

The real estate market has clearly declined in Clifton since early 2007 a nice sign that there is a correction in home prices, creating affordability to the areas always known as a great “starter home” area. 

From January of 2007 to January of 2008, the average “value” of homes in Clifton declined from $434,489 to $406,104.  From February of 2008 to current date of this post, values declined from $406,104 to $315,309. 

Due to current mortgage rates and market confidence, the Clifton market has stagnated and we believe that Clifton is currently at bottom.  Prices should remain stagnant without significant further declines until mid 2009 where prices should begin a slow crawl toward positive equity by the end of the year.

Clifton is a larger medium-sized city located in the state of New Jersey. With a population of around 80,000 people, Clifton is the 9th largest community in New Jersey.

Unlike some cities where white-collar or blue-collar occupations dominate the local economy, Clifton is neither predominently one or the other. Instead, it has a mixed workforce of both white- and blue-collar jobs. Overall, Clifton is a city of sales and office workers, professionals, and managers. There are especially a lot of people living in Clifton who work in office and administrative support jobs (20.06%), sales jobs (10.81%), and management occupations (7.90%).

Clifton offers a mixed variety of condos, townhouses, a good number of multi-family homes, and single family homes.  All housing zoning is segregated in its own areas, which protects the value of real estate.  This means you will not have a row of multi-family homes with a single family home smack dab in the middle of it.

The real estate market has clearly declined in Clifton since early 2007 a nice sign that there is a correction in home prices, creating affordability to the areas always known as a great “starter home” area.

From January of 2007 to January of 2008, the average “value” of homes in Clifton declined from $434,489 to $406,104.  From February of 2008 to current date of this post, values declined from $406,104 to $315,309.

Due to current mortgage rates and market confidence, the Clifton market has stagnated and we believe that Clifton is currently at bottom.  Prices should remain stagnant without significant further declines until mid 2009 where prices should begin a slow crawl toward positive equity by the end of the year.

Contact one of our professional realtors today for a free consultation, or just simply browse homes for sale with our exclusive MLS/IDX searching tool at the top of this page.  Please contact us for details.