Multi Family House Hack Jersey city
Hey whats going? I just wanted to write up and give some #’s on my first deal.
1) Im from NYC so markets for investing here arr insane for someone like me. So I decided to look a little outwards. I ended up in Jersey City, NJ (10 minutes from the Holland tunnel to Manhattan). Here the market is much more favorable for what I was aiming to do which was house hack.
2) The Numbers
I found a 2 family with a fully renovated basement.
Asking Price - 450,000
Purchase price - 429,000
Down payment + closing cost - $29,000
(FHA 3.5% down)
Mortgage - 3,250 all in (Mortgage + Insurance)
I will be responsible for monthly utilities (Water & Gas)
Top floor Unit (Unit 2)- rented at $1,575 2 bedroom 1 Bath
Unit 1 - currently undergoing upgrades to the bathroom and overall minor touchups such as removing the awful 1970’s wall paper throughout the apartment and repainting it with a nice shade of Grey. Also changing light fixtures and electricity outlets throughout. Kitchen is due for a major upgrade but its not essential right now. Unit 2 is renting for $1,575
And is the outdated layout as the unit in repair. So im assuming with the minor touchups and new bathroom I can at least seek $1,600 for Unit 1. Unit 1 also has access to the back yard and im sure if i do some trimming of the grass I can increase the rent further. The kitchen is outdated though but I will try to make it as nice as I can via minor upgrades. (No new appliances or cabinets)
All that being said I believe I will be coming out of pocket about 350$ a month by living in the already newly renovated basement. I know in some parts of the country that may not seem like a deal but living in NYC where 1 bedroom apartments are $1,500 + its a steal for me and a way I figured I can gain massive experience close to markets I know.
I plan on renting out Unit 1 by Feb 1 ( the first day my mortgage is due) I know i can get alot better than 1600 if I fully renovate the kitchen but i want to hold off until the end of the year when the new tennant leaves. Gives me more time to save up some extra cash.
Any comments you guys have or advice would be appreciated!
If anyone wants to see pic of the outdated apartment and the minor repairs im doing Shoot me an email id love to show you pictures
Andrewg32090@gmail(dot)com