All Forum Posts by: Jon Huber

@Mala S. I would be breaking even now and being that positive cash flow is nearly impossible in the NYC area, my thought process was that breaking even is good. And I agree with you that the numbers don't work in North NJ / NYC Metro area SFHs. I was originally looking into duplexes, however, after speaking with my mortgage rep, I am able to put 10% down on the SFH as opposed to 25% on the duplex. I understand... that I could take the same money and invest in Sheboygan, WI or Cleveland, OH and get a couple hundred dollars a month. I suppose I should keep looking...

@Mark Langdon It is looking that way. I think it would be a shame to see this property go for 175 when the neighborhood is comping 250+. Possible flip? I could take my time doing the minor work to be done while housing a family member? Two birds with one stone... 

@Louis Leone You are 100% correct on the property taxes. Luckily, there was a recent assessment done that lowered the taxes significantly. I probably wouldn't have pulled the trigger on this property had the assessment not been done.

@Michael RegaladoWelcome to the site. You can learn a lot if you prepare yourself. I'd suggest going on a podcast marathon. There is a lot to learn on there, and you can do it from your phone. Good luck!

@Hasan Hamdan  I was looking hard at Hudson Co and Passaic. This was Essex

@Bill Gulley @Ned Carey 

I love this discussion. Yes, you can get some amazing positive cash flow in the remote areas of the country. However, I have only ever lived in the NYC and LA metro areas. Yes, you can say that you can not predict appreciation, but some areas are easier than others. I know I would never live in any area other than a big city. So, I lean towards appreciation. It is the same as a single family vs multi argument. Being that I have so much exposure to multis living in the biggest cities in the country, I lean towards multis. I have never actually living in a SFH.

Love the banter everyone.

@Mala S.  It's a great area in NJ, a train ride away from Penn Station. As you know, it's nearly impossible to even break even.

@Victor Menasce  I appreciate your feedback. And you're right, this is not a blue chip investment... however, it doesn't need to be for this one specific scenario. The reason it's important to be in the NYC area is this is the area I am from and I am putting a family member in the property. While they are living there, I am not concerned about the rent or positive cash flow. I am prepared to carry it for them. However, I wanted to see if the numbers would work out if and when they decide to move and to have the deal analyzed from a buy and hold standpoint. That being said, the rents have continually been raising over the past 3-5 years.

@Hai Loc  I had 8% for Property Management and 5% for vacancy. The house is in good condition, so I used 3% for Cap Ex as well.

This is in the NYC metro area, and is a short walk to the train line to New York City. NYC commute would be about 30 minutes.

This is a short sale and the purchase price is considerably lower then the homes that have sold in the neighborhood. This would be a buy-and-hold property. It is a very nice and safe neighborhood (B or B- if I were grading), and is a 3 BR, 2BA. The house is two stories and about 2,000 sq ft. There are a few cosmetic things to fix (little spackle, little paint), but the foundation and roof are sound.

Rent: 1,800

Purchase price: 175,000

Mortgage (PIMI): 860

Property Taxes: 7,000

The numbers will be tight. The numbers I run seem to have little cash flow, however, still positive. Now I am putting it out there to see what you guys think...

@Will F. This is a tough question... however, I live and own in LA and I am always scouring the MLS for more. I would look into Boyle Heights. I was looking into some multis in that area, and I can assure you that most of them didn't last a week on the MLS. I am not saying this is going to answer your question... just saying that is my history.