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Investment property in Northern/Central New Jersey
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.
Hi Divya,
It depends what returns you want. You could probably pay less per unit and cash flow better, but still lease to a working family as you stated. I would look at Rahway or areas around Metro Park. Even New Brunswick but the rents arent as high there. You could look at Hamilton NJ too and pay around $100,000 per unit with rents around $1350 per month. There are some condos there if you are stuck on new construction.
We do most of our work at the very bottom of the North East Corridor line in Trenton. There are some commuters here but very little commuter families. If you are looking to invest around public transit to NYC there are more opportunities for small to mid sized multi family buildings in Trenton. Local management would be needed to keep things running for you though.
I hope that helps!
Matt
Hello Divya,
I'm actually looking around in north jersey mostly Bergen county area. There are deals just seems hard to find them with the high taxes and average prices of homes in this area. My range is 250-350k and you don't get that much for that around here in move in condition. I would like to definitely network with some other investors in north New Jersey just to show me some tips for investing in this area. I have not seen any meet ups coming soon either for northern jersey. I do have a spot available to have one though if someone decides to schedule a meet up in Paramus New Jersey on route 4. There is a panera bread that has a meeting room available. I am working with a new nice real estate agent that I like and he has been helpful in finding some houses. I'm looking for 2 family mostly but open for a 3 family. I am a full time mechanic for restaurants so I know how to fix almost anything and everything in a house which is good and helpful. But if anyone is interested in networking with me shoot me a message I would like to share thoughts or just get educated. Oh yea and I love this site by the way haha.
This question gets brought up so often I think there needs to be a sticky for handling this: People always asking what towns do I invest in I want this, this, this, and my budget it this. You will be hard pressed to find answers because there's way too many factors to go through in order for it to really work out.
FIND A REALTOR, TELL THEM WHAT YOU WANT, START LOOKING. Come back with specific questions for something you are interested in. If the realtor cannot help or does not understand what you are looking for, which happens a lot, find another one. It's really that simple. If you want to get into RE investing go and look at what is there. It's the only way.
Good luck guys!!
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.