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?
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
Rental Property Investor · Queens, NY · Member since 2018 · 99 posts · 70 votes
7y
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.
Investor · Jersey City, NJ · Member since 2013 · 129 posts · 122 votes
7y
@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.
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
@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.