Multi unit in Bayonne with rent control

Buying & Selling Real Estate
10yFollow

Multi unit in Bayonne with rent control

Raj G.
Investor · Jersey City, NJ · Member since 2015 · 304 posts · 48 votes

Hi,

I found a property in Bayonne, it's 5 small units, asking price 610K. built in 1930, Tax 15k

Lot 2700, it's under rent control, expected total rent around 5k, need some minor modification.

it's attached on one side.also Property class recently changed from 4C to 2.

It will be my first time ever home shopping, so needed you all friends advice...What I need to look, what I may be missing.

I will be waiting and appreciate any reply on this.

0Reply
41 views

Most Popular Reply

Tzvi BalsamPro Member
Investor · Brooklyn, NY · Member since 2016 · 226 posts · 45 votes
10y

@Raj G. 

Bayonne does not have rent control anymore but any one there Predecontrolled  days has it locked in until they leave and in my experience that is almost never. 

1Reply
See this reply in the discussion

8 Replies

Jump to latestLatest
  • Robert T.
    Investor · bayonne, NJ · Member since 2016 · 8 posts · 1 vote
    10y

    If I am not mistaken rent control was removed in 2012 and the battle was lost again in 2014 to restore it, thankfully. 

    What's the insurance,  water  and pseg/heating costs?

    What are you putting down, terms of loan?

    0Reply
  • Raj G.
    OP
    Investor · Jersey City, NJ · Member since 2015 · 304 posts · 48 votes
    10y

    I didn't ask about insurance, water and pseg/heating..I didn't think that it could be a factor.

    My main worry is/was it's 1930 home,is it worth to invest that much money in so much old home.

    Regarding rent control, I found the same information on internet as you told me(no rent control), but I am not sure why seller's agent told me this.

    0Reply
  • Robert T.
    Investor · bayonne, NJ · Member since 2016 · 8 posts · 1 vote
    10y

    You need every number, compare your total monthly expenses to your potential monthly income and see what you are left with.

    Compare that to your initial  investment and see if your happy with your return yearly return.

    0Reply
  • Raj G.
    OP
    Investor · Jersey City, NJ · Member since 2015 · 304 posts · 48 votes
    10y

    if I compare, my monthly rental income=my monthly mortgage + property tax + home insurance.

    But, I am thinking equity that I am making every month is gain.

    Riskier part is : built is 1920, so I don't know what sudden/unexpected expenses I will face down the road.

    0Reply
  • Tzvi BalsamPro Member
    Investor · Brooklyn, NY · Member since 2016 · 226 posts · 45 votes
    10y

    @Raj G. 

    Bayonne does not have rent control anymore but any one there Predecontrolled  days has it locked in until they leave and in my experience that is almost never. 

    1Reply
  • Raj G.
    OP
    Investor · Jersey City, NJ · Member since 2015 · 304 posts · 48 votes
    10y

    Thanks @Tzvi Balsam, @Robert T. for you valuable inputs :-)

    0Reply
  • Raj G.
    OP
    Investor · Jersey City, NJ · Member since 2015 · 304 posts · 48 votes
    10y

    what is best way to find good deals directly?

    also if I know the owner of a property then how to find it's address and contact number to reach him?

    0Reply
  • David Smith
    Rental Property Investor · NJ/PA · Member since 2016 · 555 posts · 149 votes
    9y

    so NO rent control in

    Bayonne ?

    is this the ONLY town having no rent control??

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free