Monday, June 20, 2005

Long Branch Rental Properties

Speaking of rental properties, checking the classifieds this weekend, I noticed that at least two of those brand new condos in Long Branch that are located right near Rooney’s Crab House are for rent already. The rents seemed pretty reasonable (less than $2800 per month) especially relative to what the monthly mortgage payment would be.

Those condos have a listed starting price of about $600k. Assuming a $540k mortgage at 6% for 30 years brings the monthly mortgage nut to $3235. If you figure the property taxes are about $7000 per year ($583 per month) and the monthly maintenance is about $400, than I estimate the total monthly cash outflow to own one of those condos would approximate $4200. If you subtract out the tax benefit, assuming an effective rate of 25%, you would save about $820 per month, which would bring the per month cost to own to about $3385.

Like I said though, you can rent out the same place for less than $2800.

Look, this is the area I’m talking about. They only want $2,200 per month.

If the link dies, try MLS # 10028863


Anonymous Anonymous said...

We sold investment property this year in Jersey City.

600 sq.feet 1 bedroom condo, 4th floor walkup.

Sale price $225K, taxes and maintenance ran $300 monthly.

We've had it for 3 years and could not have it rented out for more than $900 monthly.

Assuming the property is paid off , if we kept it now we would have had 3.20 % APY (not taking any further possible appreciation into the account, I am fully aware I might have left some money on the table).

There is number of banks offering 4.0% on 1 year CDs now.

Guy who bought it, put 10K down and financed the rest.

His monthly payments would be in $1600-1700 range, not taking any maintenance/repairs into consideration.

When we bought, we had it breaking even with 20-year fixed rate mortgage.
(How stale concept nowadays ! Breaking even..)

Monday, June 20, 2005 11:31:00 PM  

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