Northern NJ (7 Miles from NYC) Analyze my deal/Help with MAO

[Ian Paulix]

Hello, BP, let me start by saying I am very new. I recently read “The Book on Rental Property Investing” and “Negotiating Real Estate” but I can’t help but feel inexperienced and insecure about this so I am asking your help.

This is an off-market three family 1910 Victorian I am looking to house-hack with 3.5% down via FHA and 203k. It needs about 150k in work to become a Class A property. It currently only has a top tenant for $1500 a month to cover taxes and it is in very poor condition. Conservative rent in great condition is $2,200 a month. I think with the offer of off street parking, or even the garage+washer/dryer I can get more.

The owner/heir advised me a realtor wants to list for $550k, but since it would be off market with me he’d do 525 due to no realtor fees, and lowest is a family friend price of $500 (I also offered to move all his junk out).

The ARV is difficult to estimate, there are not many comps I saw within close proximity that I can see as reliable. My guess is the conservative ARV is going to be $650,000.

I attached a youtube clip I made of the first two floors, and the exterior to show you the layout and neighborhood.

;t=2s

Other things to note.

The express bus to the city is around the corner, and across the street are two brand new 1.2 Mil homes, next door is a zestimate of 637K and is an alike but single family home. There is a four car garage that are separated and in great shape as well.

Thank you, and sorry if I left out anything. Im sure there are edits to come!