Investing in Middlesex county NJ

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Hello BP members! I've been looking to purchase either a short sale or ROE single family property in central NJ. However, with the property value and taxes being so high in this part of the state particularly Edison, Iselin, and South Plainfield (cities of interest) it's seemingly becoming very difficult to find a profitable deal.

As a first time investor I'd like to stick to a town I'm familiar with, hence the target cities. That being said, has anyone invested in this market? If yes, what has your experience been like?

Thanks for taking the time to provide your feedback!

[Natalie Schanne]

@Darren Sager @Shailee Shah - As Darren said, there's definitely money to be made in New Jersey. I bought a $200k house near TCNJ in 2018 and make over $1000/mo cash flow from it. I get lots of rental inquiries for my properties or ones I represent for clients. Anywhere with high taxes and property values over $300k, I recommend you consider the live-in rehab (you live there, fix it up on the cheap, sell it 2 years later with free capital gains) on an REO (Fannie Mae Homepath has special owner occupant only deals for the first 21 days), OR focus on the quick rehab and sell (like buy for $100k, rehab for 40k, sell for 180k+ within 3-6 months). Not stellar numbers but 10-30k profit while you build a team of contractors. If you buy a house you live in, I recommend you consider roommates or sharing with Airbnb. You will qualify to deduct a lot of your taxes and expenses against that income, reducing your cost of living. You can do this with properties you don't live in too, but many towns are nicer if you live there.