Newbie quesion about rentals in Northern NJ/Metro NYC

[furnishedowner]

badmash,
Perhaps you can get those higher-priced metropolitan properties to cash flow better by furnishing the rentals.  And paying utilities.  You should get double or triple the rents.  It's the local market that you have to research. If you were a worker moving to your town for a job, where would you stay?  How much would you pay?

Furnishedowner

[badmash007]

badmash,
Perhaps you can get those higher-priced metropolitan properties to cash flow better by furnishing the rentals.  And paying utilities.  You should get double or triple the rents.  It's the local market that you have to research. If you were a worker moving to your town for a job, where would you stay?  How much would you pay?

Furnishedowner

Dear FurnishedOwner,

These questions are good to think about. Thank you for bringing them up!

I think it'll depend upon what is my demographic (young/old/single/family) as well as my income level (working class, middle class, wall street). I've been in the area for a bit more than 2 years now, so I'm learning about the towns. I know that, unlike other metro areas, housing is quite difficult to come by. Like NAqueen, I may have to target working class towns as that's where the 2% is most likely to meet. But, this is based on just browsing the MLS listings. Now, after reading this forum, articles and books, I've learned that with aggressive marketing, I may be able to get the same deal in lower middle class towns as well.

I'm confident about my marketing skills, and financial & business analysis. I think that the gaps are in my lack of the overall process (purchasing as well as managing), general lack of fixing cost estimates and local contacts (mentors, lawyers, agents, contractors, etc.). As I can't make the move right away due to personal reasons, I have time to get ready. Meanwhile, I'm learning as fast as I can.

[naqueen]

sorry for delay Badmash,

Yes, I definitely include Elizabeth but they are still a little higher than the others.

However, you also get higher rent for Elizabeth than the other cities.

Please, please, please, never pay for the tenants utilities.

I don't know where Furnished is from, but here in Jersey gas alone can run about $300 or more a month for one apartment.

Especially if you get a tenant who just runs the thermostat at 70 or higher all day.

Always look for properties with separate utilities. If the property is a great deal but only has one furnace, add enough money on the top of the price of the purchase to pay to have the heat separated.

Trust me.

[badmash007]

Please, please, please, never pay for the tenants utilities.

I don't know where Furnished is from, but here in Jersey gas alone can run about $300 or more a month for one apartment.

Especially if you get a tenant who just runs the thermostat at 70 or higher all day.

Always look for properties with separate utilities. If the property is a great deal but only has one furnace, add enough money on the top of the price of the purchase to pay to have the heat separated.

Trust me.

I really appreciate this advice. Really useful.