Camden Street Trenton NJ - War zone?

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Camden Street Trenton NJ - War zone?

John S LewisPro Member
Jackson, NJ · Member since 2017 · 167 posts · 48 votes

Looking for feedback from my Trenton investors BP'ers about Camden Street.  The house I spoke to someone about today is surrounded by boarded up houses.  It's obviously super cheap.  Has a tenant paying 800 per, month to month.  The cap rate on this is over 22%.  I'm including 10% for both cap-ex reserves and maint & repair.  Thanks for your input.

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  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    8y
    I would not invest somewhere like that. People that live there will only be living there because they can’t live anywhere else. The returns are great because there is a catch, management is going to be tough and you’ll have more maintenance than nicer areas. That’s just my personal opinion. I would rather get lower cash flow and a better long term return.
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  • Derrick E.
    Investor · The Creek, WV · Member since 2014 · 890 posts · 1k+ votes
    8y
    Originally posted by @John S Lewis:

    Looking for feedback from my Trenton investors BP'ers about Camden Street.  The house I spoke to someone about today is surrounded by boarded up houses.  It's obviously super cheap.  Has a tenant paying 800 per, month to month.  The cap rate on this is over 22%.  I'm including 10% for both cap-ex reserves and maint & repair.  Thanks for your input.

    No idea about this particular street or area, but I do invest in these types of places in my local area. 

    People who claim you have higher repair costs obviously don't rent to these types of tenants. These types of tenants aren't going to bug you about every little problem. They aren't going to expect something to be top of the line when you do replace something. 

    They just want something clean and safe.

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