Best areas along the NJT with $450k to buy and hold?

Question

I just sold my first duplex a couple weeks ago (bought in fall '15) and I'm looking for my second deal. I'm hoping to buy-and-hold or BRRR in areas along the New Jersey Transit with $450k - $500k cash to work with (though I'm open to exploring more creative financing). Which areas should I start looking at?

I could also use some help learning about NJ population movement, housing supply, employment, planned public utilities, transportation, etc, if you know of any resources. I'll read anything - reports and studies are welcome.

And feel free to message me if you have a buyers list I can be added to. Thank you!

Account Closed · Answer

Great, thank you all! Extremely helpful. I'll definitely look into every single one of your suggestions - I'm all about covering as many options as possible before moving on a deal.Please let me know if I can help you in any way. Hope we can work together in the future.

Account Closed · Answer

I'm from New York as well, and decided to move to the Monmouth County area because the housing prices are extremely fair, and it's very easy to get into the city. It's about an hour commute by bus, train, and car from where I am in Middletown.

Otherwise, its very pretty, all major stores are easy to get to, and there is no shortage of things to do with the beach towns nearby. A lot of people who work in the city live in the area, and also a lot of people who used to live in the city have been relocating around here.

My area is more conservative. A little bit south - Belmar is a big tourist spot in the summer. The summer rental prices can get pretty crazy, if you want to look into that area as well and maybe some of the surrounding towns. That's along the NJT as well..

I'll try to get some reports and materials together for the other things you've asked about while I'm doing my reading later this morning. Those are great questions.

I'm looking forward to seeing the other replies to this post as the day goes on.

Happy hunting!

Dave Howland · Answer

Any town  that has a Railroad line direct to Hoboken are treasured in NNJ. South Orange, Maplewood, Millburn all have beautiful historic homes that are great rental opportunities, and they are super convenient for train commuters.

Jonathan Kim · Answer

450k opens you up to many options. If you're looking for good cash flow, you can look at Newark and Trenton. You can go after Quads and higher in your price range but don't hope for appreciating. Ironically, going with Section 8, you get more in rent (15%-20%) but that comes with a price, specifically dealing with certain types of individuals. New Brunswick is also a good option because its a major college town but high turn overs.

Research the NJ train transit maps, and towns the stops are located in. This is a good approach.

In regards to overall population growth, I feel that NJ is on the decline due the to the high cost of living, taxes are a big problem here and rents are no way near NY ranges so its not the easiest place to make a profit. I'm originally from NY too, Woodside Queens to be specific. I've been here in NJ about 12 years now and thinking of leaving as well.

Have you considered Northern NY? Like West Chester county and Yonkers. Reason I ask cause of the tolls. They rack up quick when you manage property in NJ and live in NY.

Marc Celestin · Answer

@Clint Okayama It all depends.  I like Mercer County because of its central location, transportation (NJT line), and accessibility.  It's unique, in the sense that its a metro of both NYC and Philadelphia, but has enough employment centers to not rely on those 2 cities.  Housing is a bit more affordable and there is less congestion.  Again it all depends.

Kunal Mishra · Answer

@Clint

If you are looking for good cash flow then with that budget look around New Brunswick, North Plainfield, Perth Emboy these would be C type neighborhoods but not really war zones, again I am not well versed with every block there.

Another place you should definitely look for is Bergen/Lafayette neighborhood in Jersey City, it's changing for three good reasons

Next try the Essex countyou njt line. Orange, South Orange are good rental areas.

Newark also but you need to do your research, but with your budget star in North ward ( north broadway, forrest hills) and ironbound.. all good neighborhoodstuff

Thanks

Kunal M.