Investor Looking at NY Metro Markets

[Indro Dhar]

Hey what's up everyone? Long time lurker here...making my first post! 

I'm currently evaluating investment options and looking at potential high growth areas within proximity to NYC for multi-family rental units which I can add value to after purchase and execute on a BRRRR strategy. I'm looking at some of the following areas: Hudson County (Union City, Jersey City, Weehawken), Newark (NJ), Waterbury (CT), Hartford (CT)Allentown (PA), Philadelphia.

Any realtors / wholesalers / investors have experience in these areas? Would be great to connect. Particularly - which jurisdictions would have the most landlord friendly tenant laws. Where would the most growth potential be?

Any insights on any of these markets would be great! 

[Brandon Arce]

@Indro Dhar I have experience in Hudson county, currently holding two 4-family buildings in hudson county. Some cities have some advantages over others, but I feel they are all great, and although the prices are high, there are gems to be found all the time. I recently saw a 3 family being sold auction at $250K, ARV being $600K !!!

II feel Union City is the one with most advantages for its NY proximity, 3 Bedroom can easily be rented for $2K per month, however bnie mindful of rent control recently put into effect. For any property, make sure you go to the rent control office in town and ask them if there is registered rent for the property in question. If there is you will have to start charging the same rent to future tenants, and you don't want to be surprised this being a low number.

Downtown Jersey city is overpriced, just like Hoboken. Bayonne has a lot of potential, large buildings being built all arround, and the East section from route 440 under development will bring even more value to this area, also ferry to NY being under review for this area. Send me a request so we can connect and discuss further.

[Max Vishnev]

Hi @Indro Dhar: Congrats on your first BP post and your plans to do your first BRRRR (I assume). I'm an active, investor-friendly Realtor in Hudson County, with a particular focus on Bayonne (where I'm also a home-owner and landlord). Would be happy to chat with you about prospects here and in other parts of Hudson County.

What is your budget?  Timeframe?  

[Indro Dhar]

@Brandon Arce thanks for the insights! I've felt the same about Union City...particularly the South side near the Heights & bordering Weehawken. Need to personally look more into Bayonne. It'd be great to connect and talk more.

@Max Vishnev thanks! I've only recently started actively looking and ideal budget would be around $300-$500K but I can be flexible with that. Will look more into Bayonne now. 

[Max Vishnev]

@Indro Dhar, you can definitely get a two-family in Bayonne for between 400k and 500k, depending on condition, parking, and location.  Inventory is limited right now, and it's gotten more competitive, but the rental market is strong and there is a lot of upside.

[John Errico]

Hi @Indro Dhar, welcome! I have a fair number of properties in Union City (2 and 3 families), and have generally done well, although working with the city and building department can be a challenge--I have quite a few stories. Union City is *not,* by any stretch of the imagination, a city that is friendly to investors/landlords--in fact, every year that I've been investing there (since 2014), the city has passed more and more tenant-friendly laws, and further restricted new development. Like many of the surrounding areas of NJ, prices in Union City are quite inflated--though they're still quite low relative to surrounding areas like Hoboken and Weehawken. 

My general perception is that "southern" Union City (e.g. south of, say, 15th St), and further west (closer to North Bergen) is less desirable, although the border between Jersey City and Union City is nice, and east towards Manhattan (on, say, Palisades Ave) is very desirable. The priciest places in Union City are north of 30th St, and closer to Weehawken (e.g. off of Park Ave). There are also some larger and more established developments there. 

I can't speak with experience to any of the markets you've suggested, but finding quality value-add deals in Union City, and anywhere in Hudson County, at this point, is going to be quite a challenge, unless you're sourcing deals yourself or have some other form of deal flow. Stuff on the MLS usually flies off the market if it's aggressively priced, and stuff that doesn't is usually pretty hairy (e.g. illegal apartments, city violations, leaking oil tanks, whatever else). You're probably looking at $400k+ at this point for a 2 family in Union City in almost any condition, unless it has some of the aforementioned issues, and, with renovation, that can make cash flow tight (certainly depending on size/condition/location).

Happy to lend my thoughts if relevant, feel free to shoot me a PM!

[Indro Dhar]

@John Errico thanks for your insights! very helpful in giving me a better understanding of the neighborhoods within the city. I'll be sure to reach out if I am moving on a property there. 

Another general question, why do you think prices in Union City have remained relatively lower than neighboring Weehawken, Hoboken JC and etc? 

[Steve Haines]

John is correct...almost anywhere in Union City is a good investment but above 30th street and off or close to Park Avenue / Weehawken border seems to be most promising....as Park Avenue is starting to slowly resemble Washington Street' Hoboken in a few slective spots....thx

[Jordon Bell]

@Indro Dhar I’m an investor in CT and very familiar with the Hartford/Waterbury market. Both are cash flowing markets. Your price point can definitely get you into a 1-4 unit in both cities, and even into a smaller multi-family building 5-10 unit. Both cities are neighborhood dependent, or “block by block.”