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Updated about 4 years ago, 09/14/2020
Newark, NJ
Can someone please break down the wards in Newark, NJ. I am looking for some buy and hold properties but do not want to go to a war zone to collect rent. I have heard good and bad about Newark. Thank you all!
You should talk to Ankit Duggal. He knows the area very well.
Min Oh funny you should mention that as i direct messaged him earlier today Ankit Duggal
Hi T - I was Born and raised in Newark. Still invest and do community work there:
Central Ward - comprised mostly of Downtown Newark
East Ward - includes Ironbound
West Ward - includes Lower Vailsburg and Upper Vailsburg (which itself includes Ivy Hill)
North Ward - includes Lower and upper Roseville areas as well as Forest Hill section.
South Ward - includes the infamous 'Numbered Streets' and Weequahic section (pronounced 'Weekway' by Newarkers).
The south ward is probably the most challenged when it comes to crime. However ALL of the wards have their share of it. Some less than others. Hope this helps. And I'm sure Ankit Duggal has additional info.
Ibrahim
That is a great break apart of the wards. Spoken like a true Newarker. The only thing that I would add is that within each ward individual sub-sections are good and bad. That is what make Newark a highly interesting market to play in.
Check our Belleville, Kearney and North Arlington; all realitively close to the Newark Metro area and should have some excellent
opportunities as well.
T Pierce I'm originally from North Newark. There's a lot of potential now as for war zone every ward has their own little sections that you would need to have a police escort. John Moore has mentioned a few cities close to Newark that its not too bad but you also have Nutley.
What type of properties you looking for?
@T P. Fast forward 6 years later...hope you bought when you posted. Newark is smoking!
Hey Guys, stumbled upon this thread and figured I'd post a question I had about Newark in hopes you guys are sitll active in the area!
2 partners and I are interested in buying in Newark, we are a little concerned about the rent control ordinance, especially because it seems to be restrictive on 2-4 unit Non-owner occupied multi's which is where we want to get our start.
Any insight on how you guys have purchased under-performing assets and legally reno'd and increased rents to fair market price while adhering to rent-control ordinances is greatly appreciated!
Thank you
James
@James S. Taylor I purchased a two-family last year and inherited one tenant and one unit vacant. I had to adhere to the lease agreement in effect. During due diligence, I made the call as to whether the rent was reasonable and made the deal worth it. When purchased, I made no renovations to the occupied unit. I did enhance the vacant unit and charged higher rent. In hindsight, if both units were occupied, I would have made the call as to whether it cash flowed enough to purchase. That’s the whole game itself.
Evaluate the current leases and/or rent rolls to determine if it works for your team since you have to abide by them. There is no getting around this as you will have only about 2% increase capability going forward on average rentals. If the rents are extremely low, you can request a hardship with the city as long as you didn’t extremely overpay. This is where your purchase price to comps come in. You have to do this due diligence prior to contract. Also be sure to review the leases throughly for month-to-month clauses post lease expiration.
You can do cash for keys or determine if large cash flow is your game plan or large appreciation. Negative cash flow is never an option, but be realistic with your expectations. Maybe purchase and no renovations (that are unnecessary) until units are vacant. There is definitely growth in the market and your resale value will be positive (realtor hat on).
(*statements above are assuming no Section 8 tenants)
@Angelique Diaz thank you for taking the time to provide a thorough and thoughtful response!
In the rent control ordinance I read, it said that the landlord can push rents in a vacant unit by spending a total amount equal to at least 12 months of actual monthly rent per unit wills be entitled to a Maximum of 10% increase in rent.
Am I mis-reading the law? That seems to be a lot of capital repair and not a lot of rent growth on a vacant unit!
Thank you for your help!
James
@James S. Taylor You’re correct but if you want to get around the restrictions, the ordinance details the type of properties which have exceptions as well. They also provide the details of the calculation. So basically, you cannot turn an average building into luxury apartments and raise rent by $1000 for individuals who live there already but you can make some money. How much is up to the amount of work you put in.
You stated 2-4 units in Newark, which is very broad and almost 60% (good guess) of its inventory. Why not trim down your criteria and hone in on specific properties, then define where they fall based on the ordinance.
I will speak with the city today and message you their response (if I receive one and have a happy person willing to work answer the phone). Wish me luck!
@Angelique Diaz No dice today...tomorrow is a new beginning.
@T P.
I just moved to Newark NJ.... I’m interested and learning more about the playing field out here...
Any meet-ups happening out here?
@Ibrahim Hughes
Hope u around, I found a property in Fairmount area of newark Nj , rough area from what I know .
50k lien , 30 k to seller , 50 k work . Will be getting a loan .
One family detached from both ends . Boarded up . U think it is worth it ?
I mean I hear that around 588 south orange av and other areas close enough, potential large development sites ... proposals being put forward.
If I can get section 8 ... and hold the property for a time period ... what do u think ?
Maybe this area is like Ocean av used to be back in the days in jersey city ... now u can’t find anything there .
Any advise would be appreciated
Any one a realtor I own a nice rehabbed property I used a broker to rent but no one can seem to help me rent it out I rented the other two apts but the 3rd one is still empty any help would be appreciated thanks .
@Aiman Zul
Sorry just seeing this. What's your total purchase price? How many units? Is it vacant or it it bringing in rents?
Originally posted by @Ibrahim Hughes:
@Aiman Zul
Sorry just seeing this. What's your total purchase price? How many units? Is it vacant or it it bringing in rents?
About $135 k, one family boarded up (no rent)..pls advise .
Thx
Where is your property located and what are the specifics? i own a property management company and we can help you rent your apartment. We do things a little different than typical brokers.