Newark NJ Multifamily Risks & Rewards

[Ryan Daniher]

Newark, New Jersey has become a popular location for investors seeking high returns in the Northern NJ Sub-Market of NYC. In this article, I will talk about some of my recent aha moments in regards to Newark investing. 

Some of the appeals that many investors find are high cash on cash returns, large amounts of Section 8 tenancy, and even considerable appreciation through value add properties. Considering that Newark is 25 minutes from Manhattan and close to an International Airport Hub, the City has seen a lot of redevelopment in the past 10 years.

Two particular locations that have seen tons of action, high equity appreciation, and are poised for continued growth over the next ten years are the Ironbound Section, Downtown University Heights, and North Newark near Branch Brook Park in Forest Hill. 

Some major improvements and big players have entered these locations. In Downtown Newark, there is the Museum of Art, New Jersey Devils Arena, New Jersey Institute of Technology, Audible Headquarters, Rutgers Business School, Seton Hall Law School, New Jersey Performing Arts Center, and throughout the years this location will only continue to improve! The East Side of Branch Brook Park is well known for its recently high appreciation rates. Along the Passaic River runs Route 21, connecting to 280 and taking you straight into Jersey City. As a major gateway is so close to NYC, you can expect the flow over from Jersey City/Hoboken into Newark to continue. Ironbound has become a hot spot for young professionals, new restaurants and well-manicured streetscapes provide for a hustle-bustle of activity! Along the Passaic River are parks, tons of great restaurants, and Route 95 is just a few minutes away. Right across the River is Harrison, home to the Red Bull Arena and a part of Hudson County you want to keep an eye on! All of these locations have proximity to Newark Penn Station, another hub of travel all along the East Coast. From these locations, you are less than a 30-minute commute to NYC. 

Please share any comments/ideas/stories you have about Newark NJ! Looking forward to connecting with more people in the area who see this as a great investment. 

[Dennis Yosco]

You have some wonderful points. 

I know Newark pretty well. I’ve been working in the area for the past 15 years. I’ve seen it appreciate quite substantially. 

I will say the prices here are quite inflated and there are still inherent issues in the area. Crime is still a major issues. A flip we did a fews years ago was vandalized 3 times until we hired a local resident full time to stay in the property and keep an eye on it. We had wired the whole house, that night it got all cut out. Same went for plumbing and the electric the second time. 

If investors are looking to start here, just be weary of the unexpected. Have a built in cushion. 
just because it’s cheap, doesn’t mean it’s worth it. The areas you described are indeed the best areas to buy in Newark. But it’s a street by street area. You could be in a wonderful little area, then round the corner and it’s very rough. I’ve been in the middle of a literal shoot out 2 times while working down in Newark. Granted that was at night in the worst areas, there is still lots of crime. Some of it is also towards real estate investors because we are looked at by the residents that we are ruining the area. 

With all that said, I love Newark. I would love to invest more and more here. I’d love to see more investors come to this area and raise up Newark how it used to be. There’s so much old architecture here and so much potential.  With all the colleges ever expanding, it’s always a solid investment to buy near the schools. 

Ironbound is fantastic. It’s also very tight knit. And IMO can be very overpriced. I suggest areas around broad st between mulberry and e Kinney. 
and I suggest areas along Bloomfield Ave close to clifton Ave. If anyone has other questions about the area I’ll always answer them!