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This will be a house hack at first till I can save enough up to move out. These numbers are based on once I move out. Nj is hard to get a good spread without buying a mess and Reno-ing it to make numbers work well. Is this something that makes some sense or should I not even waste my time.
Your expenses are missing insurance and PMI. These two combined will probably eliminate any positive cash flow. Your PM is low at 3%. It should be 10%. Is the property in top condition? I would increase your CapEx and Maintenance.
Investor · Ledgewood, NJ · Member since 2016 · 13 posts · 3 votes
8y
HI john thanks for your speedy response! The property is newly renovated pretty much all around.
New floors, kitchens, bathrooms, paint and trim, 2 carrier ac units, new furnace, 2 water heaters, split electric and gas.
Natural gas, pub water and sewer.
I will be wrapping closing costs into the mortgage.
Ideally, this will be my first home so I will be using this for initially a house Hack, but planning on adding 1 master sweet with walk in closet and bathroom over the empty space above the garage.
I was just toying with the numbers to see when we move out if this will make money monthly.
Investor · Ledgewood, NJ · Member since 2016 · 13 posts · 3 votes
8y
So my question is people have said on the podcasts that if you can achieve 1% its a cash flowing property so id need $3450 a month if they accepted that offer.
Your expenses are missing insurance and PMI. These two combined will probably eliminate any positive cash flow. Your PM is low at 3%. It should be 10%. Is the property in top condition? I would increase your CapEx and Maintenance.
In my area I will not look at any property that doesn’t at least meet the 1% rule. That might not always be possible in all markets. You need to find out what is common in your area.
In my area I will not look at any property that doesn’t at least meet the 1% rule. That might not always be possible in all markets. You need to find out what is common in your area.