Just to follow up on this story. The closing was delayed and the developer offered us an additional $25k to wait, which we did. We put 5% down as our initial down payment to M&M, since this was an investment, we were required by the lender to put down 25% total down payment.

After closing, the apartment was on the market for rent only 2 weeks and we had 2 potential tenants. No, we didn't get $2,500, but we did get a good rent to a very good couple. My total monthly payment is under $2,500, and as the rental market improves we hope to break even soon. As for the HOA fees of $346 per month, I am pleased to let you all know that even with the massive snow storms we were still under budget.

Mortgage $1,550, HOA $346, Taxes $515 and Landlord Insurance $47. Total monthly payment of $2,458.
Was this a Great Investment... no, but we are making the best out of it.

As a full time real estate agent I am allowed to deduct the full amount of the loss (if any). When you consider depreciation and the amount of principle that the tenants are paying, we are doing ok.

My decision to buy was to secure an affordable/luxury condo in downtown Jersey City and hold it as a long term investment. When buying Real Estate you need to think about where Jersey City will be in a few years. I lived in Hoboken and Jersey City for many years, and think they are still great investments!

PS: We have received 3 offers from potential buyers to buy this condo, including one from the current tenant. For now we are holding onto this hidden gem in downtown JC.

David Paris, Realtor
Century 21 Innovative Realty