I am a first-time homebuyer and have come across what appears to be a good deal. You guys are the experts so maybe you can help.
I’m looking at a 2br, 1.5 bath condo located in central NJ, within walking distance/bike ride to the beach.
Here’s the breakdown, assuming 4% interest rate:
$200,000 Sell price
$40,000 down payment (20%)
$1800 property tax
$150 HOA fee per month
$700 home owners insurance (rough estimate, not sure how much this is)
Total monthly payment: $1122.20
A real estate agent said typical rent for a 2br in the area would be between 1500-1600/mo.
It’s been updated, hardwood floors, new kitchen. There’s a laundry facility on site so no washer/dryer in unit.
Very rare that a 2br becomes available in this complex (lots of 1br units for sale between 165-190k)
Most units have balconies, this one does not. This is also the only bi-level unit in the complex.
Square footage was not available online, so I’m assuming 800-900 sq ft.
At first glance what do you think? There should be minimal maintenance required (or so I would think?) so I’m assuming I would not hire a management company. My main concern is having the unit be vacant or having to deal with delinquent tenants. I’ve never owned property before, much less been a landlord.
Any suggestions or advise on this?
To me if I can clear $400 month in passive income that sounds like a good investment. The taxes are surprisingly low for NJ, compared to nicer condos closer to the beach or single family homes. In the 2-3 years I’ve been looking, there have been numerous 1br’s listed from this complex. I believe I’ve only seen a 2br listed once, aside from this one.