Investing in Newark?

[Eric D.]

First-time investor here, thinking of buying a condo in Newark to rent out. I am contemplating the area around the Broad Street Station and University Heights or a little more east near the waterfront. What are people's thoughts of this area? Or other areas in Newark for someone like myself? I honed in on this area because it is near the train, a Whole Foods is in development .... 

I do not want to have to rehab a house, which I have no experience, or get myself in over my head. I want to start off nice and easy with a low maintenance condo that I can buy and hold as a rental property. I was thinking of teaming up with a realtor, basically using the MLS.

Any insights appreciated! Thanks! 

[Ro Maga]

Personally, I wouldn't buy a condo to rent out in Newark, and I LIKE Newark. In fact, I recently moved to the area you describe. I just don't see how the numbers could ever work between the cost of condos in that area, high taxes (even with abatements), and the crazy high HOA fees for all the buildings near Downtown/University Heights -- not to mention vacancy, CapEx, etc. If, as it is continuously pointed out here, SFH's in this part of NJ hardly if ever cash flow, you would almost have to be getting the condo for free to make it work. I just don't see it, but you didn't give us any numbers.

Perhaps looking at other strategies like turn-keys might be a better fit.

[Dave Cali]

Try going to sheriff sales in Essex County. If you can get a condo for the right dollars that will produce positive cash flow and have upside in a resale then that's the game you play. Don't do a retail deal at this time. Newark is always in a gentrification stage and hopefully, someday it will become a reality.

[Eric D.]

I looked at the Sheriff Sale and, in many cases, the upset price is well above market value. Granted, I do not know anything about foreclosures, and so maybe I am misinterpreting the significance of that. But still...

[Omar Ismael]

You first time investors kill me . So Eric D if you want your investing to be Nice & Easy why don't you just invest in Maplewood . I have been investing in Newark Nj  for the last 5 year and I can tell you nothing out here is Nice & Easy. 

[Lucas Polski]

Originally posted by @Eric D.:

First-time investor here, thinking of buying a condo in Newark to rent out. I am contemplating the area around the Broad Street Station and University Heights or a little more east near the waterfront. What are people's thoughts of this area? Or other areas in Newark for someone like myself? I honed in on this area because it is near the train, a Whole Foods is in development .... 

I do not want to have to rehab a house, which I have no experience, or get myself in over my head. I want to start off nice and easy with a low maintenance condo that I can buy and hold as a rental property. I was thinking of teaming up with a realtor, basically using the MLS.

Any insights appreciated! Thanks! 

 How did it go @Eric D?

[Carol Desantis]

For your first time I would suggest investing outside of Newark. Learning how to deal with turnover of tenants and the various aspects of managing your rental property will be easier to handle in other areas.