Which towns do you guys think is up and coming in center/north NJ

Question

I've been looking for a multifamily for half of a year in center/north NJ. I want it to be my primary home for 1-2 years then converted it to rental. Among the places, I love Essex county( Montclair, Glen Ridge, south orange, maplewood, etc.) the most, but they are getting expansive every singe day. All the nice houses are available will turn into bidding war.

So, I think I have to find other places that has the potential to be the next hot area. I thought about Bloomfield, but it is already a started.

Which town do you think will be the hidden gem?

So, I think I have to find other places that has the potential to be the next hot area. I thought about Bloomfield, but it is already a started.

Which town do you think will be the hidden gem?

Amanda R. · Answer

Hi @Dylan Wang – I've been searching for multi-families in this area for the past 10 months so I'm quite familiar with the current market dynamics and active pockets. My focus has been two- and three-families <$375K.

Maplewood, South Orange, and West Orange don't have much multi-family inventory. Anything that would come on would go under contract by the weekend. Similar effect with Montclair, though most multis were mostly priced out for me.

I saw the most activity in Bloomfield, Nutley and Belleville. Clifton too. Pockets where I see the neighborhoods improving and you can find an affordable property without having to total rehab are:

Bloomfield - South West of Bloomfield train station, off of Glenwood Ave. This area used to be sketchy but the redevelopment of the downtown area near the college is drastically improving the rest of the area.

Bloomfield - South of Grove St. and Bloomfield Ave. The area borders East Orange but is turning around since newer commercial areas, shopping and nicer apartment complexes have come in. Two major transportation options here too (Grove St. light rail and Watsessing Ave. train station).

North Orange - Near Highland Ave and Orange train stations. This borders some really nice neighborhoods of West Orange. You have to carefully vet the street the properties are on. One street to the next can be VERY different but I see change happening around there. There's not much commercial activity happening there though.

Overall, it's become crazy competitive in Essex county this year. I've lost offers on 6 places (some with as many as 13 offers!) and they were only in decent shape. I finally landed a two-family near Bloomfield train station. Hoping to close by October...fingers crossed for me! Going to owner-occupy too for a couple years.

DM if you'd like to chat further.

Patrick Liska · Answer

@Jonathan Greene mentioned, but as she said, that keeps going up as well and would be tough to find anything close to the train station there.

Jonathan Greene · Answer

@Dylan Wang , all of those towns for multi-family homes are constant bidding wars. Even in Belleville, I have had buyers lose out on 15 offers on a small multi. Everyone wants them. Montclair, Glen Ridge, Maplewood and South Orange for multis you will overpay to get them and the rent plus taxes will not provide an annual return worthy of the spend although the ultimate value will rise on a hold over time.It depends on your price point and your neighborhood preference where to look. I like West Orange because there is more inventory, but the multis go fast there as well. Close to the train in Orange in East Orange will provide a return over time, but many properties need some fixing to get up to the right rent roll.

Mateusz Prawdzik · Answer

@Amanda Roselli Connect with me and PM me, I always have something I am trying to wholesale in the area. I just had one in Englewood not too long ago, if I knew you were looking I would of brought it to you for 175k

@Daniel Green I have a flip in Teaneck and Bergenfield right now. Both in the Jewish side of the towns, the market there is still good. Bergenfield anything over 700k+ is sitting because of over development by the same builder. I am slowing down my building because I want to make sure some of his houses sell so I have less competition when I list my property. Teaneck, my friend just listed his house on Cumberland for 600k, and doesn't have any offers on it yet. Lots of interest because of the jewish section, but no offers.

I am always looking in those areas but most of my deals are in Union,Morris counties. If anyone has any deals please let me know, I always buy if the numbers make sense, lots of investors that back me with cash.

Daniel Green · Answer

I think for Englewood- you are probably thinking Englewood Heights which is very expensive.  Englewood is more blue collar IMHO.

Daniel Green · Answer

Yeah- I was also thinking about Teaneck as well.  I live in Cresskill so want something that is not too far out of the way.  I own a 3 family in Weehawken and that's okay but a bit further outside my travel range.

Patrick Liska · Answer

@Daniel Green been a while but i did work in that area for about 5-6 years, I think Bergenfield and Teaneck are more Blue collar  as Englewood and Demarest are more white collar and prices i believe are a little higher. but all 4 areas are a good area to invest, i think you could probably get more for your money though in Teaneck and is probably a better rental area.

Daniel Green · Answer

What are your thoughts on Englewood, Demarest, Bergenfield, Teaneck- those all seem like solid working class neighborhoods and there seems to be multi-families that could be good cash flow properties.

Kevin Schaefer · Answer

@Dylan Wang I think you need to not worry about where the next hidden gem is and just do a county-wide search for a place where you think is the right combination of safety and the numbers working. Just make the move. 1 -2 years is a long time to have not found anything you think would work for you....

Jen Narciso · Answer

south orange is going up and up and up. Blooomfield and east orange could be good spots to look.

Which towns do you guys think is up and coming in center/north NJ

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