First time investor in Central Jersey

[Herlando Y.]

Hello All,

I found a house for my first real estate transaction in central Jersey and here is the details:

This property was a CPA office for 20 yrs and in 2008 it changed into a law office. The landlord is currently in NC and looking to sell the property. I think the town is still assessing the building as commercial therefore the higher tax treatment. I think i can get tax down to 7000 - 8000. Renovation does not seem bad since the place is well kept. The property has been on MLS since Sept 2015.

• Asking Price: 260,000
• ARV: 240,000
• Offer Price: 210,000
  • 20 % down on 30 yr fix 4.125% conventional loan
• Closing Cost: 10,000
• Target total cost: 220,000
• Monthly P&I Payment: 1,800 - 2,000
• Annual Tax: 9,275
  • Potential get down to 7000 - 8000
• Rental Income: 2100 - 2400
  • Potential 3500 if sublet by room
  • Potential cash flow 600 - 1200 monthly
• Renovation budget: 20,000 (needs kitchen)

Features:

• 6 Parking Spot
• Finished Attic
• First floor office space
• 2nd floor 4 BR
• Near Train station to NYC

Is there any other thing I need to add and what do you guys think?