New Jersey - Taxes!

[Stephen Cheng]

Greetings everyone, I just moved out to NJ and am hoping to build a portfolio in the New York / Newark suburbs. What do people think of compensating for the high property taxes in NJ? It seems that they generally break down one's implied cap rate goals.

Looking in Bloomfield, a 2 family near major employment / retail in an ok neighborhood for sub $300k can be had with rents in the $3k range plus some potential for fixing the basement as an extra unit. But even then, it seems you can never overcome the hurdle of $11k property taxes. Would welcome thoughts and if anyone has any advice. 

Thanks!