Investing in Neptune NJ?

[Rekha Auld]

Hello everyone,

I am considering an investment in Neptune, NJ. ROI is around 12%. However, I'm not too familiar with the area. I know it can be rough. Can anyone with knowledge of Neptune chime in? Will Neptune see any uplift from improving Asbury Park? Thanks.

[Brian Stike]

Rekha/Bo

I live about 3 miles from Milton Ave/Neptune City.  
I'm in Asbury Park. 

Neptune still has some rough areas. If you're looking at a 12% ROI, you're probably in a tough area of the city. Shark River Hills and the Southern/Western sides of Neptune won't net you 12% unless you're really lucky and have found a great deal. I tried to get into 2 places in the nicer parts of Neptune, went so far as to write the offer, only to find out that the listing agent didn't list the property correctly and it was a HUD home owner occupied purchase only.

I would be very cautious of the parts of Neptune that are directly adjacent to Asbury Park.  The rough side of Asbury Park is directly bordering Neptune.  Bangs Ave, Lake Ave, Springwood Ave, Corlies Ave, all of the numbered Avenues (1,2,3rd, etc) up to the Neptune Middle School are all tough areas.  
There are certainly a lot of great rental properties there - you just have to know what kind of neighborhood you're dealing with.  There are a lot of drugs, gangs, etc.  

If you're serious about owning property there and plan to self-manage, I would recommend visiting the area several times at different times of the day, including about 11 pm or later.  
Asbury Park/Neptune is an interesting community.  One block is beautiful, safe, clean, old early 1900's colonials and victorians, and LITERALLY one block away there's gunfire because two gang members got into a disagreement about something.  My block (where I live) is beautiful, safe, relaxing.  1/2 mile from me is a war zone. 

Good luck!  Let us know how you make out!