Home Buying in New Jersey>Question Details

Loki, Home Buyer in New Jersey

What is good Investment?

Asked by Loki, New Jersey Thu Aug 7, 2008

Hi

I want to buy a multi family house and use it only for rental income.
I will be spending $1000 every month on the monthly bills after paying the mortgage using rental income.
In today's market, is this a Profitable investment or should i look at only the ones with which i end up with some money every month.
This is my 1st purchase.

thanks..Loki.

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Answers

6
My advice is a little different than the others and I blogged about this query In May. My adivice is that the new real estate investor should stay away unless they have deep pockets and a thick skin. I know that this is in the face of much of what you hear in the media and people trying to make a living but if you want to read more about it you can click on the link below that will take you to my full post. I hope it helps…
Regards,
Dave
1 vote Thank Flag Link Thu Aug 7, 2008
Personally, I think $1,000 monthly is lot. I'd look for something that I would either make a few dollars on or break even.
1 vote Thank Flag Link Thu Aug 7, 2008
I agree with Ken here. Your questions is a bit short on details, but let me summarize this deal for you: I can buy this great investment - generated cash flow is not enough to cover expenses. The investment may or may not appreciate over time.

Would you consider this a good investment? Don't answer that. Go and find yourself an investment professional to help you with this especially since this is your first deal. Good luck.
0 votes Thank Flag Link Thu Aug 7, 2008
Dont invest in a negative cash flow property. If it is losing money from the start and prices continue to decline you will be losing both short and long term. Suggest you put that 1000/mo into short term cd or other liquid investments that will not lose money and when a property comes up that not only covers expenses but has a cushion you jump then.
0 votes Thank Flag Link Thu Aug 7, 2008
Loki,

There is a great website http://www.IAnalyzeRE.com where you can plug in the actual values for the property and your income tax situation. Then, depending on your particular situation, including how long you plan to hold on to the property, you can decide how good an investment it is.

Joan Prout, MBA
Broker Associate
RE/MAX Villa REALTORS
Jersey City, NJ
mailto:Joan@JoanProut.com
800-671-0596x1
Web Reference: http://www.JoanProut.com
0 votes Thank Flag Link Thu Aug 7, 2008
Look at all of them. make an intelligent descision overall. Buy a good property that fills all the needs of the tenants and will bring income. You should also be looking for future resale value in this market.

I have a property that fits this bill... East Brunswick.. call me and we can discuss.

John Sacktig
Broker / Sales Associate
Orange Key Realty
732-213-1409
0 votes Thank Flag Link Thu Aug 7, 2008
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