Is Passaic NJ a good area to invest?

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Hi @Dylan Wang, welcome to BP! The plan you have put together sound great. Start with house hacking and then move out. I personally plan to do the same in the very near future for my personal residence. That being said, I have lived in the area (Clifton/Passaic/Garfield) for about two years now and what you're describing (15k taxes for triplex) could not be a great deal. It really depends on many other things such as the purchase price and I would say primarily - location! Passaic has nice and not so nice communities. The statistics on average are low, but there are areas where it could be a great investment. I would share all of the numbers here (purchase price, rehab estimate, rent estimate, other expenses) and we'll be able to give you a more accurate picture. If you're just getting started, then I would recommend to start with the Ultimate Guide to REI and Episode 200 from the podcast. That will give you some direction. I mention the podcast because it will teach you that you need to decide what kind of properties do you want to own. If the property is in the not so nice parts of Passaic, it may not just be a bad financial deal, but you could also end up with tenants that may not be the most pleasant to deal with, let alone live alongside for 2 years. There are a lot of important questions you need to answer, but don't fear - BP is a great community so you're in good hands.Regards,Alek

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@Dylan WangSorry for the late response. I think the rest have already done a good job. If I had to pick, I would side with Account Closed's rent numbers are accurate, so $1500/month no utilities is the high end.Again, feel free to post more details about specific deals and others will chime in with their advice. Good luck. Always feel free to reach out!

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Thank you Robert. I did some more research too. The area I am looking into is definitely in the good area. Actually just one block away from Clifton. It also close to train station (15min walk). I just feel it is rare to find three family house now. It could give me 15% yield in this market (if the property tax won't keep increasing so fast). Why would you say to avoid passaic city if possible? Is it because of the schools and work class?

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Welcome Dylan. I live in Clifton, which completely surrounds Passaic on all sides. I also work my full time job in the entire area as well. One side of that park is in the Passaic Park area which is the Jewish section. The other side is a less than desirable neighborhood, but not a dangerous one. That area could work with the right deal. My friendly advice would be to avoid Passaic if at all possible. You could try looking in Clifton. Great rents, and some better neighborhoods...but it also has it's not so great spots as well. Best of luck!

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Caity Fie look at rentometer for fairly accurate rents

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Hey all! I'm also a first time user looking to house hack a multi-family in the Passaic Park area near the Passaic train station. Thanks Dylan for starting this convo! I believe this is a good part of town based on my research but it's not as close to the border with Clifton... (C- rating fair?)Property that I have my eye on is a 2BDR attic over a 4BDR over a 4BDR. What I'm going to do with two 4BDRs I don't know. My initial thought is they would attract families but to reiterate Dylan's point, schools in this area rate poorly. Anyone have an estimate for a 4BDR rent here?Also looked at tax history and in 2017 it was assessed (land & building) for $364,200 - Listing claims annual taxes are $8,556... where does the 15k mentioned in previous posts come from? Won't a property tax credit or a property tax deduction bring this number down if you're living in one of the units?Appreciate any feedback! Still learning a lot and excited to make my first deal in the (hopefully) not too distant future.

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Hi Arthur. Thanks for your response. It's great that I can find some local here, since I'm from Queens. How much does the rent change during the last 10 years. What do you think of the appreciation rate in passaic?

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Hi @Dylan Wang I'm also a real estate investor living currently in Passaic. I live in the area commonly known as the Passaic Park area which surrounds Veterans' Memorial Park and the train station and have been here for the last 16 years. The area is very very nice and yes property taxes are a bit high but they have been stable in recent years. I also bought a 2 family house last year on Burgess Place.If you buy in the Passaic Park area, a 2 BR apartment can go in the 1300 to 1500/mo range. If you purchase closer to downtown, you will need to price it lower accordingly. My best advice is to do the fundamentals of screening tenants well. I have great tenants at the Burgess Place property and I have never had a problem going to the property day or night. If you have any other questions, please feel free to inbox me here at BP. Arthur Soto

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Thank you for being my first response : ) @Alek Liskov. Which areas do you think is the better ones in Passaic. I'm seeing properties by the veterans memorial park and train station (within 1mile), also close to schools. For a 3 2 bedrooms units, I'm projecting around $4500, do you think it is a fare rate?