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Updated about 4 years ago on . Most recent reply

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Teresa Gimenez
  • Philadelphia, South Jersey
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Is it a good idea to invest in blue collar neighborhoods?

Teresa Gimenez
  • Philadelphia, South Jersey
Posted

I’m a new investor looking at buying properties for buy and hold in my area which is South Jersey/Philadelphia. I’ve been going back and forth on the area I want to invest to and I’m leaning towards a very blue collar town in South Jersey (Gloucester City), a 10 minute drive from my house. I’ve put a couple of offers already but they didn’t go through. The reason why I like Gloucester City is because properties cash flow, and are so reasonable that I can have reserves for emergencies. Also the town is a 10 min drive from my home, it has a rental market and there’s potential for appreciation: it’s right across the bridge from Philadelphia. An added reason, not the main one, is that there are plans to build a railroad that would connect This town indirectly to Philadelphia (If built it will be within the next 6 years ). Nonetheless, I’m questioning if investing in a blue collar neighborhood during pandemic and post-pandemic times is too risky. I’m afraid the recession is going to impact blue collar jobs and what that ultimately will mean for me is evictions.A pretty rough start for a new investor. But this is the only kind of neighborhood I can afford and, thus, my conflict. Could anyone offer advice?

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Jonathan Greene
#5 Starting Out Contributor
  • Real Estate Consultant
  • Mendham, NJ
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Jonathan Greene
#5 Starting Out Contributor
  • Real Estate Consultant
  • Mendham, NJ
Replied

I think true blue-collar rental areas are some of the most solid around. When I think of blue-collar renters, I think of steady jobs that don't get lost in recessions or pandemics and long hours which equal less wear and tear in general. As with all rental areas, it's your choice of tenants that can make or break it, but in just the small spectrum of whether or not blue-collar areas are good for landlords, I am 100% yes. Bonus points when your tenants are contractors, plumbers, electricians because things get fixed asap.

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