Warren County Investing.

[Account Closed]

Hey fellow Jersey investors. I've got the itch to scoop up some buy and hold, and I've been noticing some properties in Warren county that are priced well and seem like they would cash flow sufficiently. My reluctance is my lack of knowledge of the area, and I find myself wondering why there seem to be so many houses for sale for so cheap. My theory is maybe a property management issue? No one wants to drive all the way over there? Otherwise it seems like a solid area to grab a couple cheapos to add to the portfolio. Is there anyone on here that has experience/knowledge of the area and can offer insight or advice? Please reach out, I'd love to hear what you have to say. Thanks.

[Jennifer Petrillo]

Warren County is full of poverty, just look up any basic stats online (Census Bureau, United Way, NJ websites, etc). The largest town, Phillipsburg, was a proud manufacturing community decades ago that sent high school graduates to medical and law school. Now it boasts one of the highest teen pregnancy rates in the state and a huge portion of the population lives at or below the poverty line (not going to quote stats here--look them up). Overall very low tooth-to-tattoo ratio in this part of the state. Immediate surrounding areas are more middle class--Lopatcong, Stewartsville, Greenwich, etc--but I do not see property values ever going back to where they were at the height of the bubble. Property taxes are so high that people have been escaping over the state line into Northampton County, PA for years now (look up NJ exodus--more people move out of NJ every year than move into NJ). No haters, please--I have lived and worked in the Phillipsburg area for 20 years. It is what it is.  

The middle part of Warren County is farmland and more farmland. The northern part is more developed and on the Route 80 corridor, here you find a mix of newer developments, older homes in various states of upkeep, manufacturing and industry (M&M/Mars corporate headquarters is here), the well-respected Hackettstown Regional Medical Center and Centenary University, which brings a hip, younger vibe to downtown Hackettstown. Lots of NYC and north Jersey commuters here. I could imagine finding decent buy and holds in this area, especially if you don't mind renting to college students.

Where were you looking?