Tuesday, May 21st, 2013

NJ Multi-Family Deal of the month | Income Property

Read our article on Multi-Family Real Estate Investment

October 17, 2012

6 Unit Building – Jersey City NJ  (Call or e-mail for pictures and offering memo)

As the market continues to produce savvy investors, we are working with many of them in the Jersey City market for bigger residentail buildings.  Today’s deal is a 6-unit brick building with 2011 Green Card located in Jersey City Heights in a very good location on a clean street.

We have walked through the building with our contractor and there seem to be nothing but minor details to be addressed.  Four of the 6 units pay for heat and hot water, lowering expenses to the landlord.  Five of six units have been updated with new kitchens, bathrooms, and laminate wood flooring.  Fact:  Similar buildings are trading at 7-8% Cap Rate on average in Jersey City Heights.

Asking price of $540,000

Gross Annual Rent Roll Income:  $73,008

Annual Operating Expenses:  $28,521

Net Operating Income:  $44,487

Capitalization Rate:  8.24%

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August 28, 2012

Two – Family Homes in Bloomfield NJ

If you are a homeowner or investor, the two-family home market is offering a great opportunity for homeowners to cut their mortgage payment to almost nothing, and real estate investors an opportunity for good cash flow with an area that has good upside.  The Bloomfield Gentrification program off Bloomfield Ave is going to improve the appeal to this housing market resulting in more revenues for the area to improve areas such as schools, infrastructure, and many more benefits.

Today’s real estate deal is a 2-family home in Bloomfield on Hoover Avenue, just off of the Garden State Parkway exit 151.  Each unit has a 3 bedroom 1 bathroom layout.  This home is central to everything in Bloomfield and located about a mile from Brookdale Park.  The home has pdated electric, new windows, new kitchen and bathrs and is a short sale.  Each side is currently rented for $1,500 for a total gross rental revenue of $3,000 monthly.

PURCHASE PRICE $260,000

Taxes:  $9,705

Insurance:  $1,000

Maintenance Allowance:  $1,500

Total Expenses:  $12,205

Estimated Rental Income:  $36,000 ($1500 each unit monthly)

Net Operating Income:  $23,795

Net Yield:  9.2%

***Updated 2-family homes in this area of Bloofield are selling for more then $300,000.  Call us for additional details or a market report for this type of property.  Call Scott at 877-688-7582 or e-mail HERE

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November 4, 2010 Multi-Family Income Investment Opportunity of the Week:

Our deal of the week lands in Morristown, NJ.  This is a 5-Family home with a walking distance location to “The Green” and the downtown sector.  The rent roll is solid and income is very good for investor oriented buyers.  Here are some numbers on the building.  If you are interested in all of the information, please contact us.

Purchase Price $750,000 +/-
Gross Rental Income $78,950
Total Expenses $24,801
Net Operating Income (NOI) $54,198
Capitalization Rate 7.23%
Occupancy 100%

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Typically, I like to look at deals that get around an 8% Capitalization Rate.  The Capitalization Rate or Cap Rate is a ratio used to estimate the value of income producing properties.  Put simply, the cap rate is the net operating income divided by the sales price or value of a property expressed as a percentage.  Investors, lenders and appraisers use the cap rate to estimate the purchase price for different types of  income producing properties.

Investors like myself, also look at “upside potential”.  While this home has a Cap Rate of 7.23%, it is enough for me to consider this deal WITHOUT upside potential.  However due to its location, rent roll, rent escalations, etc. I believe that this deal has both factors of Cap Rate and Upside working in our favor. 

If you would like any additional information on this property, please call Scott @ 877.688.7582. 

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Three (3) Family Home priced at $280,000  (SOLD)

 

Welcome back to our Multi-Family Home of the Week Post.  As most of you know, I am an advocate of multi-family home investing.  I think in New Jersey, it is easily the quickest way to make a solid return on your invested dollars.  Today’s Multi-Family home of the week is in East Orange.  Here are the details:

Located off of Central Ave in East Orange.  Built in 1940 and completely gut-renovated in 2008.  All Units have a washer/dryer, Central A/C, Vinyl Siding, Privacy fence in back, and security system.  Owner pays water.  Tenants pay Electric, Gas, Heat.  Building has a total of 16 rooms, 10 bedrooms, and 3 Full Bathrooms.  Underground utilities.

  1. First Floor unit has a total of 5 rooms which includes 3 bedrooms and 1 bathroom.  This unit is rented for $1,300 per month.
  2. Second Floor unit has a total of 6 rooms which includes 4 bedrooms and 1 bathroom.  This unit is rented for $1,550 per month.
  3. Third floor unit has a total of 5 rooms which includes 3 bedrooms and 1 bathroom.  This unit is rented for $1,300 per month

 Let’s now look at how the numbers work as an investment property.  The pro forma will be based off of today’s (1/8/10) investment mortgage program using a 75% Loan To Value and 5.75% rate

Purchase                              $280,000

Down Payment:                     $70,000

Mortgage Principal:               $210,000

Monthly Gross Rent:            $4,150

Monthly Expenses

  • Debt Service:                              $1,247
  • Taxes                                         $626
  • Insurance                                   $150
  • Property Mgmt (if applicable)        $332 @ 8%

Total Expenses:           $2,355

Surplus Cash:               $1,795 or $2,127 if managed by owner

Net Operating Income :  $21,540

*Mortgage could be paid off in 12 years on a 30 year term.

If you are interested in setting up a showing appointment, request additional details, or would like more information on how to purchase this home, please contact us and we will assist you in the entire transaction. 

kearnyAs the working week comes to an end, and while you are pondering your thoughts on how much rum and egg nog you could possibly drink this weekend, I want to leave you with some real estate thoughts that stuck out to us during one of our visits.  If you are looking for your primary home or an investment, this Kearny Two Family Home for sale should be right up your alley..

It is a 2 family home located in the Arlington section of  Kearny, NJ.  For the price and current market inventory it is one of the largest in its group and also one of the nicest in terms of the overall condition. (The thumbnail picture is the actual home). 

The home is located within walking distance to bus stops and is less than 100 meters from Roosevelt School.  There are wood floors, gas forced heat, and Central A/C.  There are 2 separate gas and electric meters and as a bonus, the roof was replaced in the last 2 years. 

The building has a total of 12 rooms, 5 Bedrooms, and 2 Full Bathrooms.  The basement is partially finished and is HUGE, which can be used for storage, however is finished enough to use as a recreational room.  Taxes on this home are approximately $9,500.

Currenly, the first floor is occupied by a physician as a Medical Office.  It is not known at this moment if the tenant plans on staying put, but if not, no worries.  Our property managers can assist in finding a new tenant, which we would recommend as medical, law, office, or retail.  You also have the choice of simply renting it to a normal tenant who plans to live there.  Either way, you have excellent options since that first floor is zoned Commercial (C-3).  The first floor commands a rental of $1,200 to $1,400 per month minimum.  The second floor commands nearly the same, closer to $1,200. 

The price of this home is just under $340,000.  For the location, it speaks for itself.  It is only 4 miles to the Meadowlands where the world famous XANADU is opening its doors in mid 2010, and you are also less than 7 miles from the Lincoln Tunnel!  Inside of 10 miles, you have anything else you could ever imagine…Entertainment, fine dining, nightlife, etc…

Here is how the numbers would work if you purchased on a 30 Year Fixed Mortgage at 5.5% rate.  Rates are significantly lower for owner occupied home loans.

$1,500     Monthly Debt Service (Mortgage)

$791         Taxes Escrowed Monthly

$2,291     Total Debt / Escrows

Taking into considerating that you rent out the first floor at $1,300, your leftover monthly payment would be $991 per month if you are an owner occupant (This is actually cheaper than renting).  An investor would get a positive cash flow of about $300 per month.  Although the capitalization rate is slightly low for an investor (to some), this home has the perfect location and condition to nearly assure you a much higher future value and be in a league of its own in regards to available inventory for sale now or in the future. 

If you are interested in viewing additional pictures or would like any other information on this home or other Kearny NJ homes for sale, please do not hesitate to contact us.  We are your real estate experts for all of Hudson County multi family homes, single family homes, and condos for sale.  CONTACT US NOW