New Jersey Real Estate

[Dan Masterov]

I am a new investor living in Jersey City, New Jersey and have been doing a lot of research on the real estate market over the last few months.  I am currently looking for a multi-family that I can hold and rent out.  However, I am finding that New Jersey can be difficult to find a good enough area that can cash flow well month over month. For example, the Jersey City and Hoboken area is a great area because it is close to NYC, but it is already gentrified and prices have skyrocketed to buy. On the other hand, moving a bit away from the city can put you deeper in Jersey City or in the Newark area which is not a great area and can land some difficulty with run down homes and difficult tenants. I am very curious to hear from other New Jersey investors about their experiences and any specific towns that they find to have the most value.  Thanks in advance!

[Larry S.]

Hi @Dan Masterov. Yes prices are high north Jersey, but so are rents. You said you are looking for a multi-family property that you can hold and rent out. Are you planning to live in the property which would allow you to qualify for owner financing? Or is it a pure rental? Do you have a price range in mind? Do you need cash flow while you live in it, or are you ok with subsidizing your housing cost? Many investors in this area are in it for appreciation and loan paydown more so than cash flow. 

You mentioned expanding your search to out to Newark. I would be cautious with properties in Newark as the city has very restrictive rent control laws. If you are willing to look as far from JC as Newark, have you considered other parts of Hudson County? I recently moved from Hoboken to a duplex just a bit further north in Hudson County. I looked through listings for months, submitted multiple offers on various properties and finally had one accepted.  If you are patient enough, I'm sure you can find something that will work for you.