All Forum Posts by: Karen O.

Your math is off. 550k less 155k is 395k. Not 385k.  

IMO there's little wiggle room if only 8k+/yr net after expenses & debt service. But this seems more a labor of love than an investment for you. So, good luck.

Will insurance replace what was there?  If the floors were HW before, HW now.  If bath/kit tiled before, tile now.  Also, try to find listings of rentals in the area.  What do they have? You'll want to be comparable.

It would be rental income.  Not necessarily all taxable income as you haven't applied any expenses against it yet. Expenses such as mortgage interest, legal fees, property taxes, r&m, insurance, advertising, realtor and depreciation are items that would offset your rental income. After all is accounted for, you'd have the amount that would be subject to income taxes.

Check your calculator.  You're using the wrong interest rate.

95k @ 5.75% for 30 yrs is $554.  

95k @ 7% for 30 yrs is $632.

Look up R.A. Story in Hampden Cty. He does great work. I don't know how far he'll travel for a gig.

Crowdfunding with an established firm. BP has a few as advertisers.  

You don't say how long your cousin has been in the business.  If a newbie, then your apprehension may be warrantedf

If you don't you trust your cousin, find a REIA in your area to start networking.

NJ has enormously high taxes. 

More importantly, do you know Paterson, NJ well?

Confused by your question.

Why are you in RE business? 

Is your goal to break even year to year for tax purposes while building tax deferred wealth that you can only access via debt? 

For about $10k, you're looking To collecting $6.6k per year in rent.

If no major or ongoing repairs, you'll make your investment back in a few years.

I think getting the tenant right is the most important thing.  Stay alert. You'll know if this is right for you.