Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Personally if I was investing 200K in Real Estate, I would go the multifamily route in poorer,more urban areas like Union City, Jersey City, Newark, or Paterson.
That's where you would get the best bang for you bucks.
$200K is a good start and once you learn to leverage it, you will be looking at multiples rental units.
You may want to look at something in the urban area where you can buy a property and rent it out to get about 10% return but I would not dump all $200K into a single rental.
All good answers above. Another important question would be about leverage. Do you plan on paying cash with no mortgage or do you want to buy a higher valued property and use the $200,000 as the down payment and take advantage of todays low mortgage rates (yes I know they have gone up from the bottom but they are still low)? There are as others have said too many variables to answer this in a chat session. If you are interested I am a realtor and do extensive work in Somerset, Hunterdon, Morris and Middlesex counties and would be glad to meet with you to discuss your options. My cell is 908-507-8178 and my email is MPollak26@gmail.com
Look forward to hearing from you.
The way I've done it is to use cash to buy distressed property that has good potential for rental. Rent it out and get HELOC to buy more. Buying with cash gives you lots of flexibility but once it's rented out, you want to tap back into the equity to give you leverage. It takes time but when I started a few years ago, my goal with a rental each year along with my full time job. At one point, I thought about quiting my full time job but I don't love being landlord that much..
The way I've done it is to use cash to buy distressed property that has good potential for rental. Rent it out and get HELOC to buy more. Buying with cash gives you lots of flexibility but once it's rented out, you want to tap back into the equity to give you leverage. It takes time but when I started a few years ago, my goal with a rental each year along with my full time job. At one point, I thought about quiting my full time job but I don't love being landlord that much..
How many homes are you at now? Why are you not worried about stretching yourself too thin and racking up debt?
How many homes are you at now? Why are you not worried about stretching yourself too thin and racking up debt?
I have a few rentals.
I did find that I was spending way too much time working earlier this year (working at my daily office job and then spending Sat/Sun working on houses). I've cut back and trying to spend more time with family and kid's sports. I assume that's what you mean by stretching myself too thin.
As far as racking up debt. Yes.. I have lots of loans (debt) but in my mind, there are two basic ways to make money. Your hard labor or you use money to make money. I am currently in a position where lenders allow me to borrow. So I am using their money to possibly make more money. Risk? There are always as I could have tenants that decides not to pay rent. This is why I like to have HELOC on the rental unit. In case of emergency, I can write checks to pay myself and pay only the interests. I have 50%-100% equity in my rental units. Emergency could mean a real estate opportunity that is hard to pass up.
This is obviously not for everyone. I just happened to like working on houses (worked on houses by doing odd jobs with contractors when I was young).
are you still looking in Jersey City, near St. Peters?
There is 1/1 bath condo for sale half mile from Journal Square.
It is a corner unit in the Kennedy Gardens Condo which is on the top floor (so no one on top of you) that is for sale, regular sale not short.
The last sale was a studio at $70K on the second floor and a one bedroom at $180K on the first floor. The rents in the neighborhood are $1200+ for a one bedroom.
200K is 25% of 800K, I would look into commercial properties, possibly small retail sites, the rent is much higher and the tenants have more responsibility with maintenance.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jersey city condo for sale
