Updated about 11 years ago on . Most recent reply
Nj RE taxes eating into profit!!!
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@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.