Fixer Upper in Newark, NJ 07105
BP Family,
I've come across a deal that's in my farm area that I'm having trouble figuring out my strategy. Hopefully you can help me out.
The property is located in Newark, NJ 07105 (Ironbound). This area is known for it's development over the past years and it's rental potential. My goal is to keep the property and rent it out but that's as far as I get.
The owner wants $290,000 for this legal 2 family property. I say this because the house actually has 5 total apartments. Top floor (attic) was converted into an apartment, the basement was converted into an apartment, and finally the house has another 1 family home/apartment attached in the back, pretty much eating up the entire back yard.
2 Family homes, in the area of this property, are going for roughly $325k - $350k. With the obvious additional apartments, this one could potentially sell for more to another investor, if I ultimately decided on that.
The property needs about $100k worth of renovations performed in order rent for top dollar in the area. With that said, I will be into the deal $390k, on a property that won't appraise high enough for me to get my cash back out.
Maybe there's something i'm not thinking of and/or not mentioning that someone can call out.
Thanks in advance for any guidance you can provide