Looking to Invest in Bayonne

[Marc Weisi]

Hello fellow BPers!   I'm a real estate investor in Hudson County, NJ (as difficult as that may be right now) and am starting to look at properties in towns that I'm less familiar with in order to find cash-flowing deals. One multi-family property in particular that I found was in Bayonne. I did some analysis and it looks like it should cash-flow pretty well. Being that I'm less familiar with the area, I wanted to do a sanity check on my rental numbers to make sure I'm not way off. My assumptions are below and are based on scanning website listings and calling other landlords. This property is in pretty decent shape and I plan on updating the kitchens/bathrooms in both units to be market-competitive so assume an average quality apartment for the area. Thank you for taking the time!

2 Bedroom/ 1 Bath:  $ 1,600/month

3 Bedroom/ 1 Bath:  $ 1,750/month

[Ibn Abney]

Summary Statistics

Sample Size	20
Max	$2,272
Min	$1,200
Median	$1,475
Mean (x̄)	$1,553
10th Percentile	$1,238
20th Percentile	$1,300
80th Percentile	$1,750
90th Percentile	$1,925
Standard Deviation (s)	$281
Standard Error	$63
Coefficient of Variation	18.1%

Bldg TypeAddressPriceSizeBedsBathsLast List Date

Higher-priced listingApartmentE 34th St & Broadway, Bayonne, NJ 07002$2,0002 bed1.0baMar 2018

Higher-priced listingApartment1141 Kennedy Blvd, Bayonne, NJ 07002$1,850805 ft²2 bed1.0baMar 2018

Average-priced listingApartmentNewman Ave & W 3rd St, Bayonne, NJ 07002$1,350750 ft²2 bed1.0baFeb 2018

Lower-priced listingApartmentW 19th St & Avenue C, Bayonne, NJ 07002$1,225900 ft²2 bed1.0baFeb 2018

Lower-priced listingApartment601 Kennedy Blvd, Bayonne, NJ 07002$1,2502 bed1.0baFeb 2018

Average-priced listingApartmentW 54th St & Kennedy Blvd, Bayonne, NJ 07002$1,3952 bed1.0baFeb 2018

Average-priced listingHouseW 55th St & Avenue C, Bayonne, NJ 07002$1,8002 bed1.0baFeb 2018

Higher-priced listingCondo26 Maritime Way, Bayonne, NJ 07002

This price appears to be an outlier and was excluded$2,6002 bed2.0baJan 2018

Average-priced listingApartment498 Avenue A, Bayonne, NJ 07002$1,700900 ft²2 bed1.0baDec 2017

Lower-priced listingApartmentE 15th St & Broadway, Bayonne, NJ 07002$1,2002 bed1.0baDec 2017

Average-priced listingDuplexHumphrey Ave & W 6th St, Bayonne, NJ 07002$1,650950 ft²2 bed1.0baNov 2017

Higher-priced listingApartment1040 Kennedy Blvd, Bayonne, NJ 07002

This price appears to be an outlier and was excluded$2,9001,243 ft²2 bed2.0baNov 2017

Average-priced listingHouseAvenue B & W 45th St, Bayonne, NJ 07002$1,6751,000 ft²2 bed1.0baNov 2017

Average-priced listingHouseAvenue A & Edwards, CT, Bayonne, NJ 07002$1,4502 bed1.0baNov 2017

Average-priced listingHouseAvenue C & W 50th St, Bayonne, NJ 07002$1,6501,200 ft²2 bed1.0baNov 2017

Average-priced listingDuplexHumphrey Ave & W 6th St, Bayonne, NJ 07002$1,500850 ft²2 bed1.0baOct 2017

Average-priced listingApartment1111 John F. Kennedy Blvd, Bayonne, NJ 07002$1,4002 bed1.0baOct 2017

Average-priced listingApartment45 Kelly Pkwy, Bayonne, NJ 07002$1,3002 bed1.0baOct 2017

Average-priced listingApartmentJohn F. Kennedy Blvd & W 32nd St, Bayonne, NJ 07002$1,4502 bed1.0baOct 2017

Average-priced listingHouse124 W 19th St, Bayonne, NJ 07002$1,3001,000 ft²2 bed1.0baOct 2017

Average-priced listingApartmentW 4th St, Bayonne, NJ 07002$1,6352 bed2.0baSep 2017

Higher-priced listingApartment42 Jfk Boulevard, Bayonne, NJ 07002$2,2721,022 ft²2 bed2/0baSep 2017

Bldg TypeAddressPriceSizeBedsBathsLast List Date

Lower-priced listingApartment312 Danforth Ave, Jersey City, NJ 07305$1,100800 ft²2 bed1.0baMar 2018

Average-priced listingApartmentVreeland Terrace & Garfield Ave, Jersey City, NJ 07305$1,6002 bed1.0baMar 2018

Average-priced listingApartment70 Armstrong Ave, Jersey City, NJ 07305$1,2752 bed1.0baMar 2018

Average-priced listingApartment130 Cator Ave, Jersey City, NJ 07305$1,5252 bed1.0baMar 2018

Lower-priced listingApartment128 Neptune Ave, Jersey City, NJ 07305$1,0952 bed1.0baMar 2018

Higher-priced listingCondo30 Constitution Way, Jersey City, NJ 07305$2,6501,250 ft²2 bed2.0baMar 2018

Rentometer Listing IconApartment337 Ocean Avenue$1,075900 ft²2 bed1baMar 2018

Higher-priced listingCondo15 Enterprise, CT, Jersey City, NJ 07305$2,7001,171 ft²2 bed2.0baFeb 2018

Average-priced listingApartmentClerk St & Claremont Ave, Jersey City, NJ 07305$1,5002 bed1.0baFeb 2018

Average-priced listingApartment264 Arlington Ave, Jersey City, NJ 07305$1,2502 bed1.0baFeb 2018

Higher-priced listingCondo4 Constellation Pl, Jersey City, NJ 07305$2,6501,270 ft²2 bed2.0baFeb 2018

Average-priced listingApartment86 Winfield Ave, Jersey City, NJ 07305$1,3502 bed1.0baJan 2018

Average-priced listingApartment72 Van Nostrand Ave, Jersey City, NJ 07305$1,7502 bed2.0baJan 2018

Lower-priced listingApartment137 Wilkinson Ave, Jersey City, NJ 07305$1,0502 bed1.0baJan 2018

Higher-priced listingCondo40 Constitution Way, Jersey City, NJ 07305$2,7001,200 ft²2 bed2.0baJan 2018

Average-priced listingDuplex46 Walnut St, Jersey City, NJ 07305$2,3001,298 ft²2 bed2.5baJan 2018

Average-priced listingApartment16 Stegman St, Jersey City, NJ 07305$1,4002 bed1.0baDec 2017

Average-priced listingCondo7 Tribeca Ave, Jersey City, NJ 07305$1,8502 bed1.0baDec 2017

Average-priced listingHouseLinden, CT & Linden Ave, Jersey City, NJ 07305$1,5001,250 ft²2 bed1.0baDec 2017

Average-priced listingHouse11 Linden, CT, Jersey City, NJ 07305$1,5001,250 ft²2 bed1.0baDec 2017

Higher-priced listingCondo4 Constellation Pl, Jersey City, NJ 07305$2,9501,510 ft²2 bed2.0baDec 2017

Average-priced listingCondo15 Cherry St, Jersey City, NJ 07305$1,9991,286 ft²2 bed2.5baNov 2017

Average-priced listingHouseKennedy Blvd & Mc Adoo Ave, Jersey City, NJ 07305$1,5001,200 ft²2 bed2.0baNov 2017

[Mark Lladas]

Hi Marc,

Of course the answer is it always depends - but from what I’ve seen $1500 might be more realistic for a 2br and $1750 is attainable for a 3br in Bayonne.

Good luck! Looking to gather a group of local investors for a meetup sometime in mid May. Let me know if you’re interested

All the best,
Mark

[Marc Weisi]

@Mark Lladas , thanks for your input/market insight.  Yes, I'm always interested in meeting with fellow local investors. I'd think a few friends in my circle might also be interested. @Eric Beepat  @Batu H.  @Justin McElroy 

@Ibn Abney   thanks a lot for all of this data. As a fellow numbers guy, I really appreciate this!  Just curious, do you have a program that produced this output? If so, I'd love to talk further in regards to this. Sending you a PM now.

[Mike Teri]

Hi @Marc Weisi, when looking in Bayonne just be aware that there will be a property tax revaluation sometime in 2018/2019 due to all the redevelopment plans around the light rail stations and the new ferry terminal (if approved). The high property taxes in Bayonne (typically in excess of 1k/month for multis) already make it very difficult to find positive cash flowing properties on the market. Make sure you are building in some cushion for yourself when running the numbers so you don't get yourself in a negative cash flow situation if/when a reval occurs. 

@Mark Lladas, I'd like to be on the invite list for a local meetup if one is being organized. There was an attempt to set one up earlier this year, but it fell through. Always looking to meet investors/resources in the local market!

Best Regards,

Mike

[Marc Weisi]

@Mike Teri  I really appreciate the feedback and we ended up passing on the property for that very reason. The taxes were prohibitively high and we think we can get a better cash on cash elsewhere with a similar commute time to the city. Thanks for your insight.

[Juan Cabrera]

The Bayonne taxes is a bruiser.

[Angelique Diaz]

Bayonne is going through a major revitalization. I agree with the prior responses regarding property taxes. I feel you could have charged slightly higher rents then what you estimated, if you upgraded properly. There are 4 major luxury apartment buildings scheduled to be completed by next year, along with a new Costco. Construction on the roads have now been completed. If you have another opportunity to get in the town, now is the time. You will be priced out in the next year. It’s the last Gold Coast City and it’s on the up. We never thought Jersey City would be what it is today, that’s the future of Bayonne as well.

[Drew Slew]

yea, about to buy a small 1 bed on JFK for 125k, and put up a wall for room rentals. For whole 600sqft condo id put it on for rent at 1300-1400/m since there is laundry, and for each room id be pulling in 700-850/m (students could rent it probably as w other properties).

What i dont understand after coming down from my Greenville property is how nice Bayonne is. Its nicer than Union City IMO, bit too far but has some form of exclusive appeal, tucked away. Also so narrow. Dont know what new developments are coming, but there must be a lot. 

[Allan Szlafrok]

@Drew Slew Don’t forget about the new ferry service to Manhattan coming to Bayonne that’s gonna be huge. Problem with Bayonne VS Jersey City is the taxes are outrageous and the rental income isn’t nearly enough to make up the difference.

[Drew Slew]

true, although on the condo investments level i dont see much difference. my union city condo 680sqft is ~3500/yr taxes, and this 550sqft 1bed condo in Bayonne on JFK is ~125k and same ~3300/yr taxes. JC multifamily has 5500/yr taxes and is 2400 sqft. Idk, pretty similar to me. 

Great, where is that Ferry going to leave from exactly? street wise

I see on this thread some Costco opening. Anything else? Like some major 100+ unit condo coming somewhere? 

i read Barnabas medical facility, Alexan CityView and some soccer fields:

https://njbmagazine.com/monthly-articles/hudson-ri...

[Allan Szlafrok]

@Drew Slew I don’t know exactly where the ferry is leaving from. There’s a lot of new development coming to that area where the Costco is I forgot the name of that area sorry. There’s a lot of investment grade properties in JC with taxes under 5k and even 4k so I like JC over Bayonne or UC. UC building dept is horrible to deal with and their rent control is a nightmare. Extremely hostile to investors especially for multi family and new construction.

[Robbie Pollock Jr]

Im in the US Coastguard Stationed in one of the units over by the cruise terminal, I think the ferry will leave from that area. I am also looking to invest in Bayonne for my first property! Taxes are brutal however.

[Angelique Diaz]

@Robbie Pollock Jr We are going through a property tax assessment this year. Also, following-up on my reply from last year on this string, we have substantial amount of apartment/condo complexes rising. They are complete or near completion all over town. I’m also a lifelong resident, so if anyone has questions, let me know.

[Robbie Pollock Jr]

@Angelique Diaz Thanks for the input! What would you say is the best investment for the bayonne real estate market single family, duplex or condo?