Montclair Multifamily's

[Zach Peart]

Hey all,

I've begun looking into multifamily properties in Montclair that I can househack. I've read quite a bit about how dangerous the southern area of Montclair is, specifically near Bloomfield Ave and Glenfield Park, by the Glen Ridge border, and that it should be avoided. Does anyone have first hand experience in this area? Is it really that bad? Is it tough getting tenants? What rents can you charge compared to nicer areas of Montclair? Figured I would ask around here before heading over there myself to get a first hand experience.

Thanks!

[Doug Minton]

I looked at some of these comments and had to laugh. There is a only one section of Montclair that could be considered questionable. The boarders are Bloomfield Ave between Elm and Maple and over to Elmeood Ave to Elm. Then there is Willowdale to Woodland, and I think the other street in Monroe over to Maple. Then there is Lexington ave, where I was caught up in a drug raid several years ago while knocking on doors. I know this area very well as I have knocked on all the doors out there, and continue to do so. Yes, there have been murders there, and the gangs are still there, but all in all the people who live there are very decent. In short, I don't fear my life when I walk along those streets. 

I also know someone who owns the brick multi and a couple of other houses on New streeet. Just keep in mind that the streets I mentioned are only only in a small section of the South side. The South side gets a bad reputation based on these streets, but there is another part of the south side that people tend to forget. That is the area near Nishuane Park. If you want to house hack, or look for a somewhat good investment, then that is the area I would recommend. There you have a lot of two family homes that are in a decent residential area and close to one of the schools, which is next to the park. As far as the one little section, i.e. New St., Mission, etc..... If you want to be a slum lord, then start there. 

However, I will also say that I did see that some investors are starting to rehab on Mission street and Miller street. That is a positive sign. I also will say that the person I know who does invest in that area was looking to get out and didn't have any real issues with collecting the rent. They have owned there for many years and are were looking to cash out. 

So, in a nutshell, the South side isn't really that bad as long as you know how to invest and put good tenants into the properties. The caveat is the taxes. That is the problem with investing in NJ, the taxes. Will the properties appreciate in that area? I wouldn't speculate. Why not go to the town meetings to see what they have on the agenda for the development of the downtown area. I can also tell you that there are investment properties that i have seen for sale near the downtown area and the prices are really untouchable for real investors. Also, there is a lot of competition out there. I tried to pick up a 3 family on the other side of Bloomfield ave for 325k to live in. I was not able to pick it up with the multiple offers that were on the property and didn't have cash at the time. So Montclair may be tough to get into. I would suggest looking into Bloomfield as that town is next as far as growth and they have been rebuilding their downtown infrastructure for the last few years near the train station. 

Tip.... Go to the town meetings for both towns and compare their master plans. There are deals everywhere, you just have to know how to evaluate them and make the educated decision as to where to invest. 

If you need any help with the analysis, then please feel free to reach out to me as I am an agent and a an investor in the area.