There is no doubt that 830 Mountain Drive in South Orange is currently a best buy. Why does it get my vote? Several key factors. The home is in the highly sought after Newstead section of South Orange on Mountain Drive- a premiere street. The house sits on roughly .33 of an acre- a very generous amount of land in this neighborhood.
It is a large sized home with 4 bedrooms and 4 full baths with wood floors throughout and an outdoor pool. It’s architecture will appeal most to those who like Ranch style homes built in the 1950’s. They are becoming quite in demand.
After size and location, the next most important criteria to analyze the investment versus the return on investment. The comps show that only one other home sold below $500,000 in Newstead in the past 12 months. It is a 3 bedroom 2 bath colonial on Speir Drive, that needed a lot of work and sold for $490,000. This house on Mountain is currently listed for $485,000. So by comparison it is a much better buy.
In terms of the home’s potential re-sale value – its important to note that the average Newstead home sold in the last 12 months was listed for $716,996 and the average sale price was $702,935. Remember, that’s the average. A fully renovated home with a new kitchen and baths will trade well above $702,000.
Let’s do the Math:
- Purchase price $485,000 (or maybe lower)
- Renovations $200,000 (a very generous budget)
- Total Investment $685,000 – 2% below the average sale price in Newstead.
- Due to the renovations the house would stand above the average home for sale and list for at least $750,000-$800,000
- Sale Prices in South Orange are increasing on average 5-7% per year. That means in a year the value could be somewhere between $787,000-$840,000
- Based on these numbers it is a $685,000 investment with a possible $787,000- $840,000 return which equals 15% – 23% ROI in 1 year. No other investment can come close.
If you or someone you know is either looking for a good buy to renovate and live in, or you are an investor looking for your next project call /text me now (917) 327-0701 to preview this great opportunity. For more details click here