Property tax for rental property in Hoboken NJ

[Lance Yang]

Hi All, 

I live in Hoboken NJ and own my primary residence. Currently I am paying 6k per year property tax for my home. I plan to invest in a rental property that is similar to my residence. After reading some articles online, I found that property tax for rental properties is about 2-3 times the primary residence. If that is case, monthly property tax for the rental would be 1k - 1.5k. It seems there is no way to make any positive cash flow given the property tax. However, there are many apartments rented out in the community for 2k. Did I miss anything here?

Thanks much,

LY

[Patrice Penda]

Hey @Lance Yang
Properties tax are not a function of the usage of the property.
They vary from one town to another and they can vary significantly. My impression  is that relative to house prices, property tax in Hoboken are not too high compared to other towns. But it is just an impression, I never really looked at the data for property tax for Hoboken in detail.

Are the properties you are looking at for rental in Hoboken? Properties don't cash flow in Hoboken. So it doesn't surprise me that you have rented apartments rented for 2k when it doesn't seem to be enough to cover all the expenses.
People have been investing in Hoboken for price appreciation which in the past years have, by far, exceeded cash-flows returns investors made in other places.