Multifamily investment union city nj

Multifamily investment union city nj

Member since 2021 · 2 posts · 2 votes

Hey my name is Giovanni I just recently moved from queens to union city New Jersey I have been looking around for an investment opportunity in union city I was wondering if anyone here has any input on this area just because it is so close to manhattan and the prices aren’t so high compared to Hoboken and downtown jersey city also if it is worth to buy a new construction multi family instead of an existing one

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Member since 2018 · 9 posts · 9 votes
5y

Hi Giovanni, I own a multi-family in Union City after having moved over from the Bronx. I’m a big fan of the area for the reasons you stated; I’m within a ten minute drive to midtown Manhattan and prices are relatively affordable compared to Hoboken and Jersey City.
Multi family prices in UC vary significantly depending on where it is in the “gentrification” cycle; properties by the reservoir and Palisade ave. are A LOT more expensive then properties more in-land, north, and west. 
Be mindful on what your investment strategy is, if it’s to “house hack” you’d be comfortable up to a 3-family to avoid rent control, but know that once you move out and rent out all 3 units your 3-family will become rent controlled (I’m in this bucket). 
Taxes are very high in UC, especially for multi’s that have had permits opened and closed. If you’re buying a new construction, make sure there’s a tax abatement strategy in place and please budget yourself for the inevitable year 5-6 when you’ll be responsible for 100% of the property taxes. 

My wife does real estate in the area if you ever want to discuss opportunities further and if you just want to chat, I’m happy to help as well. 

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  • Hoboken, NJ · Member since 2017 · 33 posts · 9 votes
    5y

    @Giovanni Casuccio I know the building office is very slow and clunky - that’s why there are so few constructions going on compared to jc/Hoboken.

  • Member since 2018 · 9 posts · 9 votes
    5y

    Hi Giovanni, I own a multi-family in Union City after having moved over from the Bronx. I’m a big fan of the area for the reasons you stated; I’m within a ten minute drive to midtown Manhattan and prices are relatively affordable compared to Hoboken and Jersey City.
    Multi family prices in UC vary significantly depending on where it is in the “gentrification” cycle; properties by the reservoir and Palisade ave. are A LOT more expensive then properties more in-land, north, and west. 
    Be mindful on what your investment strategy is, if it’s to “house hack” you’d be comfortable up to a 3-family to avoid rent control, but know that once you move out and rent out all 3 units your 3-family will become rent controlled (I’m in this bucket). 
    Taxes are very high in UC, especially for multi’s that have had permits opened and closed. If you’re buying a new construction, make sure there’s a tax abatement strategy in place and please budget yourself for the inevitable year 5-6 when you’ll be responsible for 100% of the property taxes. 

    My wife does real estate in the area if you ever want to discuss opportunities further and if you just want to chat, I’m happy to help as well. 

  • Lender · Member since 2021 · 277 posts · 150 votes
    5y

    I agree with @Phillip Fernandez

    I have had a couple clients recently house-hack in Cranford/Union that will be commuting to the city. Their work is flexible, so they don't have to make the commute every day. I would take a look in those areas.

  • Real Estate Agent · Hillside, NJ · Member since 2020 · 33 posts · 12 votes
    5y

    @Giovanni Casuccio Welcome to NJ!

    Would you consider looking into other cities that are commuter friendly?

    Such as Newark/Elizabeth that have train stations/bus stations.

  • Union City, NJ · Member since 2015 · 31 posts · 14 votes
    5y

    Hi Giovanni,

    I just bought my second multifamily in Union City. I agree with what other people have said, the area is great if you need to commute to NYC. I house hacked my first property and am doing it again for the second. It is not as nice as Jersey City or Hoboken, hence the lower prices, but it is rapidly changing and prices have been skyrocketing. In the last few years the market has only gotten hotter and it is very difficult now to find a deal. I’ve been focusing on off market strategies but it seems most people in the area know the market is hot so it’s very tough to find a deal. If you can find a deal then it’s a great place to invest in the NYC area.

    Also go for two families if you can because you don’t have to deal with rent control. You should try to avoid the city at all costs because they have very slow and can be difficult to deal with.

  • Member since 2021 · 6 posts · 1 vote
    5y

    In my personal opinion, I would buy an older 2 family and jazz it up a bit (new paint, new fixtures, etc.) Don't get me wrong....New construction is great but you will pay a premium for that. I also suggest to buy near Park Ave near the Lincoln tunnel and Weehawken border...that area is quickly developing nicely and booming with young professionals. The 2 family brings good rental income. In other words, I live on the first floor with finished basement and I rent the 2nd floor. I get $2,100 a month for my rental which covers my taxes, all utilities, home insurance etc. In brief Union city is a very hot market now but still affordable (at least for now)....hope this helps...thx

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