are investors/HH still cash flowing in North jersey nowadays?

[Account Closed]

i am from Paterson NJ and I am seeing so many new projects being built mostly apartment buildings. They look amazing, and I have seen many people buying duplexes and 3 unit properties. Question is that these properties seem to be overpriced by at least 10%.

When I ask a few of them, they all mention $800 plus cash flow but none take anything out for vacancy, repairs, CAPEX or PM. Is this normal? I was always told to include those than after those are taken out, that is your real cash flow.

i am currently looking at the Philly market due to high property taxes and well not a lot of inventory around in North jersey. 

[Mark F.]

You're kind of answering your own question. Some people are not cash flowing, like you said they are not taking into account those other expenses. 

But most people in that area don't care. They want a safe place to park their money and RE in Northern NJ is their garage. This is a common trend when you see offers way over asking, all cash, or both. Lot of foreign (or stupid money as some call it) that you just cant compete with. And shouldn't. 

You are correct that CF is all of your profits minus what you said. You mentioned in your title house hacking. Yes, you can cash flow in a HH situation. Most of the time when you leave (if you do your math correctly) and not when you're living there. For example I currently have an $80 mortgage due to HH. 

Its widely known that its insanely competitive in the northern NJ area. You must either work fast IE get in the day of listing with an offer. Or work hard, find a list that's been sitting and see what it needs and fix it. Third option is watch for back on market properties, pounce on the opportunity for sellers who had a crappy buyer. Good luck!