Please HELP with deal

Hello everyone, I am new to REI, but I’ve learned a great deal from this site (very informative). I’m currently working on my business plan and have talked to several lenders (need to get my credit score up). I’ve looked at a number of houses and feel very comfortable with the property values in my target area. I am also working with a realtor who specializes in investment properties. I’ve been looking for single family homes to fix-up and rent (very good market for rentals - Section 8). Now, while doing my homework I came across the following deal:

Purchase Price: 325,000
Repairs Needed: None

Gross Rent: 6,250 per month
P&I : 1,250 (current mortgage) per month
Taxes: 292 per month
Insurance: 292 per month
Vacancy Allow: 300 (5% of gross income) per month

This deal was out of my price range (looking for single family homes under 80k to fix-up and rent, but it appears solid. I would hate to miss out on a good opportunity!

What do you think? Am I missing anything? If doable, how can the project be financed with little to no money in New Jersey?

Thanks in advance


Hello Keith, Is this a multifamily project?

Yes. The property has 6 rooms (sharing 2 bathrooms) , 2 (1)bdrms, 1(2)bdrm and another 1 bdrm that was converted to a beauty salon. It is also fully rented.


Hello keith, I know you said that your score is low but, where is it at? Would you be able to put moeny down toward this project?

chris, it’s in the low 600’s. How much money are we talking? I might be able to come up with some funds.

Hello Keith, They would need 10%. Now, if this project is too much for you, you could do one that is of a lower value say $100K or less.

thanks chris, I might be able to pull this off. Need a couple of days to try and put it together.