Investment property in Northern/Central New Jersey

[Divya Gupta]

Hi - I am looking to buy a condo or coop in central or norther NJ, to rent to working professionals or small families. I'm looking for newer construction, $200-350k range. I'm not sure what towns to start with, any recommendations?

I'd like to be able to rent it easily so probably something close to transit to NYC. I would want to keep it for at least 5 years or more. 

[Steve Wilcox]

You need to define some goals for your investment. 

I look for maximum yield so I invest in urban areas of Essex county where I can get decent units for about $60k per 3 bed unit which will rent for $1200. However I have very small if any appreciation, the neighborhoods can be dangerous, management is expensive,  and many people can not or do not want to deal with the challenges associated with these areas. 

If you want something to hold for small cash flow but is a secure easy to manage asset there are other areas that may cost more but might also have better chance to go up in value, dont require as much repair and maintenance budget, ect. I am also a fan of Elizabeth but you need to know the areas well. 

I suggest you first set some goals, then for a rough idea start looking online at different areas on zillow using the map to get a rough idea of what inventory in the area is trading for, then use craigslist and zillow to determine a rough estimate of rental rates in the area, and use the BP rental calculator or some metric of income vs expense to decide your own feelings on a neighborhood. Once you have some prospects, drive around in those neighborhoods, and ask specific questions on BP, get in touch with local realtor and start making offers.