Another Possible Investment Property
There is another 1 bedroom condo in Union City, NJ that I am going to look at.
This would be used as investment property. Here are the details.
One bedroom condo (600 Square feet)
Renovated kitchen & bathroom
Purchase price is $108,000
Association fees are $184 monthly
Taxes $1500 per year.
The problem is that the current tenant (who is on a month to month lease) is paying only $650 per month rent, which is at least $300 - $350 below market for that given area.
Is there anything I can do or should I just 'move on'. However, there seems to be rapid price appreciation in the Hudson county NJ area especially in the condo market. Many people are moving over to Jersey from NYC because its an easier commute & because overall taxes are less.
I'm Sorry, the numbers just don't compute. Your payment, taxes, insurance, and condo fees are MORE than you will be able to get for rent. As far as I can see this is a negative cash flow deal, why would you want it?
DITTO!!!
Walk. Go get one that works for you!
I guess that I am missing something, the tenant is not a problem, especially if they are on a month to month lease. If you can rent it for $950 a month will that cover the payment and then some?
What is the value of the property? have you made an offer?
Can you take this subject to? or do a purchase option purchase with this property?
Is the lessee interested? what about selling an option to him 10-15K down and so much a month crediting part to a purchase price? selling it to him on a two year option with ( figure average increase in value of %6 or tow year value of 122k, say 115K) etc.
The options are endless...
With the little you have given us how could anyone say "take a walk?"
I say, "figure out three different offers that work for you" submit them and see what develops, i.e. a low cash offer, a purchase option offer, subject to offer etc.
YOu never know if they will accept anything until you ask.
Create the deal that is good for you and submit it/them.
Naysayers are a dime a dozen..
Best of Luck!
Here are more details on my finances & intent.
I am making $45,000 per year in my day job.
My FICO is between 640 - 660.
I have $15,000 in credit card debt (no recent lates) which I can pay off prior to taking a mortgage.
The purchase price is $108,000 for a one bedroom which is probably below maket.
I want to put down 10% or less & do some additional work if warranted.
Tenants are on month to month lease paying $650 per month (friends of the owner who is selling).
Can get new tenants & charge between $900 - $1000 per month.
Dont forget to compte in the $184 a month association fees......if you are paying it then the profits are gone....if you do just a straight purchase / rental...............tough call......basically you have to decide to roll the dice or not on the possible appreciation over time.......good luck
I plugged in the numbers at 6% interest (or maybe it was 7% --sorry, can't remember and forgot to write it down)...anyway, here's what I got for a monthly payment:
Principal and interest 647.51
Tax 125.00
Insurance? 50.00 (perhaps the HOA pays this?)
HOA 184.00
Total = $1006.51 per month
Doesn't look too good... but then, hey, it's late...my math could be off.... <IMG SRC="images/forum/smilies/icon_wink.gif"> [ Edited by makingaliving on Date 01/01/2004 ]
Interested in any property im Orlando?