HELP ME MAKE THE RIGHT DECISION
Hi everyone,
Since we are very new to the real estate investing world, I need advise.
if you would have 2 options:
Option 1
Get a duplex, no appreciation but good residual income – 15% cap rate, in a C- neighborhood – price $170 - Asbury Park Area
Option 2
Get SFR, good neighborhood, waterfront, almost no rehabbing costs, appreciation value, 7% cap rate, - price $170 - Perth Amboy Area
WHAT WOULD YOU PICK
My financial adviser said that i can swing this without FHA loan by putting 50K down. I want to leave FHA for another time, either for my own nice home or for a 4 unit rental BUT in the area where i would consider leaving.
I am torned. The area in Perth Amboy, NJ is nice, not the greatest but nice, from outside the house looks deceiving but inside is very well taken care of. The second place needs some minor adjustments but for the tenant its ok. No closet space at all, and we noticed tree branches coming through the closet floor, which the owner assured us are not such a big deal, but I know it is a big deal. The house has lots of perks, not the most updated but nice, energy efficient, low taxes, solar panels on the roof, roof needs a coating, and kitchen needs updating but if I would to rent it I can leave it as is for now. From the second floor deck you can see the water. Nice cozy house that can be rented for around $1500 (7% cap rate). The previous owner held it for 25 years and now selling for 170 - I do not see huge appreciation here
The property in Asbury Park is a duplex, with two 3-bedrooms units. The area is sucks but good rentals, has very little appreciation but excellent Cap Rate
We made an oral agreement with the Seller and I instructed my attorney. Now I have second thoughts. tomorrow I had scheduled an inspection for the waterfront property. Shall i cancel it and get the one in Asbury Park?
Please help. Thanks.