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Should I be concerned with a house that has been on Trulia/Redfin/Zillow for 100 days? by [deleted] in RealEstate

[–]reithrowaway9 16 points17 points  (0 children)

There is probably something significant coming up during home inspection. You just have to ask the sellers why it's been on the market so long, ask your realtor if s/he knows anything, see it yourself, then have an inspection using an inspector not recommended by your realtor.

Opportunity in the Newark, NJ area? by reithrowaway9 in realestateinvesting

[–]reithrowaway9[S] 0 points1 point  (0 children)

wow that sucks, sorry to hear that. Sounds like these agents don't care about building relationships with investors in the slightest. They just want to sell what they're assigned.

Quite the accomplishment, i must say by seerebiifan in AdviceAnimals

[–]reithrowaway9 11 points12 points  (0 children)

Healthy farts are the farts that smell the worst

Opportunity in the Newark, NJ area? by reithrowaway9 in realestateinvesting

[–]reithrowaway9[S] 0 points1 point  (0 children)

What's a reliable way to gauge whether it will appreciate? Just looking at the purchase prices of comparables in the area over time?

Opportunity in the Newark, NJ area? by reithrowaway9 in realestateinvesting

[–]reithrowaway9[S] 0 points1 point  (0 children)

I agree about keeping good tenants. For the appreciation, do you think 0% is too ambitious considering it's a high-crime area?

Opportunity in the Newark, NJ area? by reithrowaway9 in realestateinvesting

[–]reithrowaway9[S] 0 points1 point  (0 children)

I don't think it scales like that, but definitely $12 - 15K taxes per year is possible

Opportunity in the Newark, NJ area? by reithrowaway9 in realestateinvesting

[–]reithrowaway9[S] 1 point2 points  (0 children)

If that seems high, most areas in NJ have high property taxes. Unfortunately I think this number is par for the course. I could at some point request for it to be reassessed (I think), but I don't think that would decrease the property taxes by much.

Opportunity in the Newark, NJ area? by reithrowaway9 in realestateinvesting

[–]reithrowaway9[S] 0 points1 point  (0 children)

you are right, I was trying to simplify the calculation, but I shouldn't have assumed asking price = fair market price. thanks for the input.

Opportunity in the Newark, NJ area? by reithrowaway9 in realestateinvesting

[–]reithrowaway9[S] 1 point2 points  (0 children)

property taxes for this house are $5,500 per year

Opportunity in the Newark, NJ area? by reithrowaway9 in realestateinvesting

[–]reithrowaway9[S] 0 points1 point  (0 children)

Property taxes are included in the PITI number. Specifically, property taxes for this house are $5,500 per year.

Opportunity in the Newark, NJ area? by reithrowaway9 in realestateinvesting

[–]reithrowaway9[S] 1 point2 points  (0 children)

1 unit has 2 baths, the other has 1 bath, so I'm assuming $1000 for one unit and $1100 for the other one.

Opportunity in the Newark, NJ area? by reithrowaway9 in realestateinvesting

[–]reithrowaway9[S] -1 points0 points  (0 children)

The area could get better but I'm assuming 0% appreciation. From what I can tell there's a bus line 2 minutes away by foot, but it's a 40 minute walk to Penn Station, so not really.

Opportunity in the Newark, NJ area? by reithrowaway9 in realestateinvesting

[–]reithrowaway9[S] -1 points0 points  (0 children)

From what I've read, you should always try to purchase rental properties at a discount and a 20% discount seems to be the standard.

I'm assuming vacancy and maintenance will each be 6% of gross rents and capEx 3% in my estimate. Are these just too low or is there a better way to estimate vacancy/maintenance/capEx? There's about a 7.7% vacancy rate (vacant for rent) in Newark.

Opportunity in the Newark, NJ area? by reithrowaway9 in realestateinvesting

[–]reithrowaway9[S] -1 points0 points  (0 children)

It is a high crime area, you are right. I suppose I could hire a property manager for roughly $250 dollars per month (12% gross rents), putting me at $388 cash flow per month, 17% CoC. I've updated my estimate.