Looking for rehaber/opportunities in North NJ

8 Replies

I am planning to buy few rental investment properties, it very hard to get decent return in NNJ right buying retail right now.  I see some listing on zillow/realtor.com that require rehab  might give decent return.

Here are two sample listing from realtor.com/zillow, what does it take to make these properties into rentable condition?  Are these decent deal to do a rehab?

Ironbound - 2 units list $158k

https://www.realtor.com/realestateandhomes-detail/...

Union City - 2 family list 250k

https://www.realtor.com/realestateandhomes-detail/...

Thanks,

Want to give an update. It seem too good to be true deal on trulia/realter.com usually have reason.

Union City is bank owned, we cannot see the house, but was told it need gut renovation.  

Ironbond was bank owned, and price went over $300k.

Keep looking :)

I suggest not to get hung up on the term gut renovation. As long as there is no major problem such as a foundation issue or underground tank issue. Then gut renovation can simply mean cosmetic job throughout the house. 

@Youwei Chen The Union City property looks like a tear down. Could have potential if you are ready to do new construction. You may be able to build 3 stories - 2 or 3 units. There is limited comps but I've seen gut renovated 2 family selling for 700-800k in this area. Small lot with no setback are some cons. 

@Youwei Chen

a price range of $350k - $450k in union city sounds like more reasonable for a two family house that only needs minor work. I haven't seen many listings below $300k.

The union city house you referred to may need over $70k to bring up to a rentable condition , assuming major problems. The numbers I quoted below are quite modest and it could get more expensive:

1, two new bathroom: $14k - $20k

2, two kitchen: $12k - $20k

3. new floors for two units: $8k - $12k

4. new windows / doors $3k -$5k

5. new roof + siding repair $5k - $8k

6. wall repair + new paint: $6k -$10k

7. repair electrics and plumbing $15k - the number would go very high if you need to replace the electrics and plumbing

Best,

Diana

2 family selling for 700-800k? 



Originally posted by @Mala S. :

@Youwei Chen The Union City property looks like a tear down. Could have potential if you are ready to do new construction. You may be able to build 3 stories - 2 or 3 units. There is limited comps but I've seen gut renovated 2 family selling for 700-800k in this area. Small lot with no setback are some cons.