Middlesex and Hudson County investing help

[Vincent Villani]

Hi everyone, Curious on anyone’s opinion, who’s experienced in Hudson County NJ investing, of Union City and Bayonne. I’ve been analyzing a few deals in these areas and there are some that I really like. However, I’ve heard mixed things about Bayonne in regards to its somewhat longer commute into New York as well as lower previous years of appreciation. Being that I’m using FHA, rental income is key. I’m also looking throughout Middlesex County. I’ve visited quite a few homes, and I’m pretty dissatisfied with houses in the $200-$300,000 range. There are a couple of deals I’m somewhat interested in, but they require some work and I’m really unsure of the renting capability there. More specifically Edison and Sayreville.

[Michael S.]

Hi @Vincent Villani

I personally house hack in Bayonne (duplex + livable basement) and found it to be a much better value than Union City or Jersey City for the criteria I was looking at -- rent:purchase, proximity to light rail, access to shopping, low crime, access to parks and more. With the luxury high rises entering the city, combined with additional development (including a Costco this year) and upcoming bike share program, I'm still glad I chose this area as a good blend of an investment / lifestyle choice. I've done some work to my home and am now certain the home would provide nice cash flow for me if I were to ever move out. Also, the commute really depends on where you buy in Bayonne. The higher the street # and the closer you are to the light rail, the better. I work in NYC and have no problems with the commute because the light rail --> path --> subway is generally reliable and frequent on weekdays. Weekends are another story. I'd rather do this than take my chances on buses from Union City.

If you were to buy, I would focus more on multi-family rather than single family. The prices aren't much higher than single family, but the returns are much greater. I've noticed Bayonne has also recently been added as an investment market on roofstock.com if you want to see how the number play out.

Happy to help if you have specific questions about locations. As David mentioned, I'd stay close to the light rail stations since they are where future city development will take place.