Since Trenton is still a brand new market for Hipster to explore, we’re going back east today to check it out. It’s a pretty amazing score – Trenton comes with all the bells and whistles for savvy investors. Real estate mogul Barbara Corcoran has her eyes on Trenton, pointing out that it’s half-way between Philly and New York: she believes this market is poised for real growth. Aside from Trenton’s premium location, it has a uniquely low unemployment rate and a high price to rent ratio, which means you score quality tenants with a low-buy in and a higher monthly cash flow.
Here’s today’s hot Trenton property for you – it even comes with a one year maintenance guarantee and a one year free tenant replacement which means no leasing fees for you.
Single-Family Home
Location: Trenton, NJ.
Built In: 1920(but fully redeveloped, including plumbing, electrical, you name it)
Purchase price: $75,000 (not a foreclosure, normal sale)
Property info: 3 bedrooms, 1 bathroom, 1,412 square feet, 2+ stories
Income
Monthly rent collected: $1,200
Expenses
Monthly expenses (conservatively estimated)
Property taxes: $343
Insurance: $50
Property management fees: $120
Vacancy (7%): $84
Repairs (5%): $60
Total Monthly Expenses- $657
Net Income = Income – Expenses = $543
Advanced Numbers
Cap Rate = 8.68%
annual net income (non-inclusive of mortgage payment) / purchase price
Cash-on-cash return =
Depends on your leveraging.
Special Terms
- 1 Year Maintenance Guarantee
- Free tenant replacement (no leasing fee) during the first year of ownership
If you are interested in this property or seeing others like it, contact Melissa at melissa@hipsterinvestments.com. Take the plunge: you won’t regret it!
Why are property taxes so high? Over $4000 a year for a $75.000 property seems very high.
Hey Jon, yep, the taxes in NJ are the highest of all the markets. I can double-check the $4000/year amount with the seller for you for sure.
Great find! I grew-up just outside of Trenton and my parents are still there. The city has many charming brownstones that are ripe for renovation and investment. Don’t forget that Princeton, NJ and New Hope, PA are a short drive from the city of Trenton.
Awesome Elaine!