Feedback on deal - Jersey City
Need some feedback on a deal we're under contract with in Jersey City. We actually went to contract just before the pandemic hit the area. Since then, we requested a 75 day extension on our due diligence, and the seller agreed. Here are the facts.
Neighborhood: The Heights
Type: 3 family (2 1 bedrooms/1 bathroom, 1 2 bedroom / 1 bathroom). Technically, they also added an additional 1 bedroom and 1 bathroom in the attic, but it is not legal. Has a huge yard as well, no garage.
Total sq. ft. of the building: 2842 (with 4th bedroom/1bathroom - fully functional and pretty nice.)
Price: $680k
Income: Here's the tricky part. The seller wants to stay on as a tenant for a year as their child finishes school and then they will move... at a reduced rate of $1525.00 per month. The remaining two units will be delivered vacant. Since the pandemic, we're concerned in moving forward. We closed on another building, but it was fully rented. This is basically only 1 unit filled, two (technically 3) units vacant. I know, filling in JC is pretty easy since it's walkable to the train and the bus, but the eviction moratorium is also troubling.
Are we concerned for no reason? She would request a price reduction? If so, how or what do we base that on? The building is pretty nice and the owners picked us over three other offers since we're allowing them to stay at the reduced rent rate.
Thank you.