Dear BP members,
I have been reading and listening to BP podcasts and am anxious to close on my first deal. The two deals listed below are in the Jersey City, NJ area. I think property around here is relatively more expensive and I think would be difficult to find a 2% Rule deal. 50% ruIe works. I would be so grateful for any advice they can give on these two potential deals. Thanks in advance!
Asking Price: $340,000
2 Unit duplex
Rent: 2600 / month (for both units together)
Brand new renovation just done on one floor, other floor needs $20,000 to renovate
Asking Price: $399,999
2 Unit duplex
Rent: 2900 / month (for both units together)
Already has tenants. If tenants leave, I would spend about $60,000 to gut renovate
Are there any experienced BP members that can help me to analyze this deal? I've done some calculations myself but I would feel much better if I can compare my analysis to experienced investors.
Thanks so much!
Yes, I forgot to list the taxes, thanks.
Deal 1 Annual Tax is $4159
Deal 2 Annual Tax is $5819
I have $300,000 cash I can use, so either to use all for one property or to leverage for more, it would be great to hear your thoughts on that too.
And I will hire property managers
Why Jersey City? And where in JC?
Thanks so much Jason! That information is so helpful and I really appreciate you taking the time to look it over.
These are properties towards the south part of Jersey City, but still close to the Light Rail.
I'm looking in the Jersey City area because I'm a home inspector in the area and currently doing a tax revaluation for Jersey City. I walk door to door for hours each day for my job and I see the appreciation for the properties. I also like this area because close to NYC, there's never a worry of a population or job market decline.
I get to speak to a lot of homeowners, some who can't afford their homes, some who inherited, some who can't stand their tenants and just want out... I run into motivated sellers almost on a daily basis who haven't yet listed their homes for sale. I think there's a lot of potential here
What a privileged position from which to study a market and buy! Those prices for a duplex seem low for the areas that are on the up-and-coming in JC, but you have insider information on values across the city.
Haha, well this job doesn’t pay too much so it’s be great to supplement my income. I was forced to make a career change and chose a career in real estate to get involved, I know I won’t make a good realtor.
I’d like to add, in case it makes a differ nice or for any experienced negotiators:
Deal #1: property owner is 91 yrs old diagnosed with leukemia and few months left. Son is taking care of selling property.
Deal #2: current owner cannot stand second floor tenant and told me he just wants out ASAP.
@Herman Chen if you don’t end up with those deals I might have some interest in it.
@Herman Chen I'm highly interested/looking in JC as well. Feel free to reach out at any time on these "situations."
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