Paterson, NJ (075 01-44) - Does anyone invest in this area?

[Angel Gonzalez]

Hey BP community,

Angel here - I'm a rookie real estate investor in the Northern New Jersey area. My business partner and I are looking at a few properties in Paterson, NJ and we would like to get someones take on the overall real estate market as of today.

My analysis:

• - Prices are heavily inflated due to the current sellers market but to my understanding.. the prices on houses in the area have been increasing over the past few years now. 

• - An 'opportunity zone' for the state of New Jersey that has attracted small business investors and a large pool of real estate investors as well.

• - Most homes don't seem too developed... which leads me to think... appreciation is mostly because of the land the home sits on, not the home itself.

• - Playing to my last point, pretty competitive of market real estate (which can result into bidding wars on investment properties.)

• - Medium home value range is in the $340,000 range (My guess based off of a few deals I analyzed but would love to hear everyones thoughts!)

• - With it being the largest city in Passaic County, it has a population of about 145k

• -  I grew up not too far from Paterson (Hudson County) and I've heard some quite unpleasant things about the city (could be a bit rough in certain areas)

Given the overall market, we believe for the right price and area; Paterson can be a lucrative area to invest in.

Would anyone like to add to this analysis? Any investors in the area who can pass on some REI wisdom?

Much appreciated!

-a

[James Lloyd]

My fiancé lived near St. Joseph's hospital for over a year, and I got to explore the city a bit as a result (go to parks, drive around, etc.).  @Jonathan Greene and @Paul Daniels have already pointed to the primary problems with the city.  I'm sure if an investor spent some time in finding a decent block or neighborhood to invest in, then he/she could find some half-way decent rentals, but I would not invest without having someone investigate the neighborhood first.  Some parts of the city are no-go zones.

I would agree that the prices in Paterson are inflated given the status of most of the structures (a lot of dilapidated buildings).  I think the landowners are waiting for a gentrification developer to come along and pay inflated prices.  I don't know if its a competitive market because there are a lot of properties that spend a lot of time on market from what I have seen.  

If you do visit Paterson, go to the Great Falls, it is a really nice park/waterfall.