Wondering if this would be a good rental property

Wondering if this would be a good rental property

Weehawken, NJ · Member since 2017 · 30 posts · 5 votes

Hi All,

I'm still new to this and I've been trying to evaluate properties and could use some help. I live in northern new jersey so taxes and prices are a bit high. Was wondering if I could get some feedback to see if this property (or ones with similar numbers) would be worthwhile:

https://www.berkshirehathawayhs.com/homes-for-sale...

-$928,000

-$14,588 taxes

-~$720 hoa

I have roughly 20% to put down. Any feedback is appreciated! :)

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Member since 2016 · 13k+ posts · 12k+ votes
7y

Is it possible to get 10K per month rent. If not it is a poor investment.

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  • Member since 2016 · 13k+ posts · 12k+ votes
    7y

    Is it possible to get 10K per month rent. If not it is a poor investment.

  • Weehawken, NJ · Member since 2017 · 30 posts · 5 votes
    7y

    Thanks!

  • Attorney · Clifton, NJ · Member since 2015 · 1k+ posts · 328 votes
    7y

    @Curt S. I also live in northern NJ and it's very difficult to hit the 1% rule and some other metrics that you like to see from a rental property. The HOA on your example seems high and the taxes are very high, which would cut significantly into your cash flow. What are some of your goals? What are you looking to accomplish?

  • Real Estate Agent · Cupertino, CA · Member since 2016 · 4k+ posts · 1k+ votes
    7y

    Several Redflags:

    1. High HOA

    2. 1 br only

    I will look for an SFH 3-4 br w/o, no HOA due and lease to a family. The price is as much as those in SFO with a view of Golden Gate. They will not get $7500-8000 in SF.... This may be a AirBB candidate.

  • Jason LeePro Member
    Real Estate Agent · New York, NY · Member since 2015 · 401 posts · 235 votes
    7y

    You'd be roughly $1300 negative cash flow per month, not including vacancy... which could be quite high considering this would be at a high price point. You're not going to cash flow around here with new construction condos with just 20% down. These are mostly appreciation plays for all-cash buyers that want no maintenance/easy tenants.

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