All Forum Posts by: Frank Quent

kevin, yes, i'll have to figure out property tax and home owners... the fees i believe are included with mortgage, but i'll check again.

russel, yes, i know those fees exist...i don't anticipate them significantly hurting my bottom line, especially with rent increase and property value increase over time.  but perhaps i'm off

brendan-  YES.  making sure renting is permitted is huge.  

Thank you for your good advice.  And feel free to direct me to helpful youtube links or websites.  THANKS!!

-F

Do you think it's profitable/good investment to buy a single garden apartment unit with the goal of renting it out in a very rentable area of north new jersey (where i live).  The unit sells for roughly $150,000 and the average rent in the area for this type of unit is between $1250-$1500 per month.

Approximate mortgage details-   $30k down, $550 per month in mortgage for 30 yr fixed.  

Additional information about myself-  33, single/no kids, regular income, currently living in a rental for cheap.  Zero real estate experience.

My thoughts-  I would be investing approximately $230,000 (not including expenses) over the course of 30 years with only $30,000 down.  If it rented for $1,250 nonstop for all 30 years and never increased the rent, i would gross $450,000 (1250 x 12month x 30 years).  Plus I would own a $150,000 property (assuming the value never changed in 30 years which is very unlikely).

Can anybody provide feedback on whether or not I am greatly under-simplifying this, or if I have a basic common sense approach to getting started with investing.  Thank you.