Central NJ Property Cost to Annual Rent Ratio - Posted by Jim

Posted by MIKE on August 02, 2001 at 09:37:03:

I AM IN LAKEWOOD(OCEAN COUNTY)

Central NJ Property Cost to Annual Rent Ratio - Posted by Jim

Posted by Jim on August 01, 2001 at 20:49:05:

For the Central NJ area, what would be considered a good ratio of the estimated annual rental income to the cost of the property for a 2 family house?

I see many properties in the 10:1 and 9:1 area. The best property I have seen is about a 7:1 ratio.

Does anyone consider this ration in their analysis to determine a property’s value? I know it doesn’t consider many factors such as property condition and quality of the area, yet it seems to be a good starting benchmark.

Re: Central NJ Property Cost to Annual Rent Ratio - Posted by Ronald * Starr

Posted by Ronald * Starr on August 01, 2001 at 23:18:43:

Jim----

This is called the annual gross rent multiplier figure. It has some other names, too.

You probably had better get some basic real estate investment books and study them. This will save you a lot of time trying to invent investment techniques on your own.

Good Investing****Ron Starr**************

Re: Central NJ Property Cost to Annual Rent Ratio - Posted by MIKE

Posted by MIKE on August 01, 2001 at 22:22:36:

IT IS HARD TO GIVE YOU A ANSWER TO SUCH A QUESTION. I LIVE IN CENTRAL NJ AND I CAN TELL YOU THAT WHERE I AM THE MARKET IS SO HOT YOU WOULD BE LUCKY TO FIND SOMETHING SO CHEAP. BUT GENERALLY I TRY TO BUY THINGS CHEAPER.GOOD LUCK

Re: Central NJ Property Cost to Annual Rent Ratio - Posted by Peggy(NJ)

Posted by Peggy(NJ) on August 02, 2001 at 02:02:08:

Jim,Mike

Where are you guys located? I’m in Flemington.

Re: Central NJ Property Cost to Annual Rent Ratio - Posted by Jim

Posted by Jim on August 02, 2001 at 09:40:32:

I am in East Brunswick looking at the New Brunswick and Perth Amboy Markets. I have had a two family house in the Morristown area for about 12 1/2 years and am looking to get something closer to home.