Nj RE taxes eating into profit!!!

[Joseph Romero]

In looking for properties in NJ, I can't see why anyone would invest in some towns in NJ. My question is would you invest near where you live but have higher RE taxes OR invest in properties farther away but less RE taxes?

[Doug Minton]

@Joseph Romero,@Dawn Brenengen

Dawn, yes it was quite an experience and I am still rolling with the punches. I got my NJ real estate license, and I am hoping to be investing full-time by next year right after a cash out on my NJ property which I currently live in. One lesson I could share is that if you have a crappy looking property, then you attract crappy people. The main difference between my Rochester property and my Atlanta property is that I would live in my Atlanta property. It is newer construction, built in 2007. However, my Rochester property was a slum. I would have never lived in it the way it was. My story could have been very different if I had fixed up the property, and then rented it out.

Joseph, yes sir, Essex county has really high taxes. However, it is a very desirable area, so fix and flips work well out here. I reached out to an investor that I partner with and he just picked up an 8 unit building in South River. His taxes are low and they projected an 11.5% cap rate. They are all in for 450k and will net 52,125 annual rent. So that's around $4300 per month. I wish I had partnered up with him on that deal. So, I think the key is to invest in an good area in a town with low taxes and where the properties don't look run down. Sometimes you can find some good multi-family units that can be rehabbed in areas like Newark. The key is to know the good areas in Newark. Take a look at North Newark, area code 07104. I am also looking for a 3 family in a town like Bloomfield where I can live in it and also cash flow. Just know that there are areas that you can invest and the taxes won't kill your profit. Like I said, I think its all relative to your area.