Hudson, Income Property, NJ Suburbs
NJ Multi-Family Bargain of the week| Income Property
December 17, 2009 by admin · Leave a Comment
Welcome back to our Multi-Family Home of the Week Post. As most of you know, I am a sucker for 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:
Three (3) Family Home priced at $280,000
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.
- 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.
- 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.
- 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.
As 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
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