North Jersey investing

[Brian Dwane]

Hi,

I’m new to real estate investing and wondering if there are any meetups happening here. Also wondering everyone’s opinion on the market, generally. From what I’m seeing in this market (Hoboken, Essex and Bergen county), it’s really hard to break-even or turn a profit. Are others playing the long game and hoping for appreciation or is there something I’m missing with the economics of North Jersey?

Thanks!
Brian 

[Jason Wray]

Brian,

Have you considered buying out of state in places like Indiana, Ohio, TN, FL. It may seem a little scary at first but its a growing trend that buyers in states like NJ look outside for good cash flow deals. All of my customers in NJ, NY, CT, CA, WA and other states are all buying in those states as well as a few others.

The price to cash flow ratio is going to be better in those states as well as having a higher inventory of both single family and multifamily rental homes. I just closed on a Fourplex 4 unit in Indiana for a guy in CA who paid $355K. The rents were at $1000 a door with a potential to increase up to $1250 after some small TLC renovations.

When you factor in the price point, lower taxes and lower insurance you have yourself a sure fire cash flow deal. I know for a fact that NJ has some unreal taxes and they keep getting higher each year for no benefits.

If you have any questions feel free to reach out or send me an email I am always happy to help Bigger Pockets members. Sometimes just having more options can help boost confidence to make that first move.