Any Cash Flow Properties in Northern NJ - Essex/Hudson County?

[Stu Basham]

Hi all,

This is my first every post. I'm really excited to be learning this stuff. I'm about to buy my first house hack in Journal Square with my wife. It's a duplex in the official area of Marion. I'm excited to keep looking for deals. 

I have been looking at properties in Essex and Hudson county to see if they would be good buy and hold investments or doing the BRRRR strategy. I analyzed a bunch of properties using the calculators and it seems that once you factor in all the property taxes, repairs, CapEx, etc... most houses wouldn't actually cash flow with the market rents. Property taxes on multi-families are well over 12k per year and if you're getting only 1,400 in rent for a 1 or 2BR that gets eaten up just to pay for property taxes.

So my question to all the New Jersey investors, are you finding houses/multi-families that will actually cash flow with the high property taxes and factoring in all your expenses?

Thanks in advance!

[Jessica Zolotorofe]

In JSQ you're only getting $1400 for a 2 bedroom!? What kind of condition is the house in? That sounds exceptionally low for that area. Have you spoken to local realtors?

And over $12,000 is way too high for taxes there from the sound of the house you are talking about. If taxes are that high on a house that can only rent a 2br for $1400 a month, that property needs a tax appeal immediately! Taxes are based on market value, so those numbers just don't seem to make any sense. Especially not in JC. Maybe take another look?