Investing in Harrison

[Account Closed]

Hello all,

I am looking to get started in multi family investing and/or fix and flipping in the Harrison NJ area (as close to the Path station as possible). Anyone have experience in this area? Pro's and con's? What to watch out for? I already own a house that I live in, so NOT looking to buy a multi unit and live in one. Looking primarily to invest in a MF that I can rent out long term and/or hold until I can flip, or SF that I can flip. I have contractors for repairs, it's now just a matter of finding a deal. Anyone with experience in this area willing to share their thoughts?

Thanks!

[Michael G.]

Hi Sri!

I love Harrison and would have loved to invested in this area when opportunities were readily available. Unfortunately, new investors looking to get into Harrison will be met with a HOT, and in my opinion overpriced market. A lot of the homes there (Singles and MFs) are old and can easily fetch well over $500k (typical price range for 2 units). New MFs (2 units) are selling for over $700k. While some savvy and risk tolerant investors are willing to proceed with a purchase of such a property - I cannot justify spending that amount for an old (and most of the times, very old) property. 

You find a gut-renovated property in Harrison for $500k and that's your deal!

Some alternative options you can exercise are to search for properties in neighboring towns which are exhibiting healthy growth (i.e. Kearny, East Newark, Newark). If you are set on Harrison, i recommend waiting it out to let the prices settle down a bit; the last thing you want is purchasing a property when its peaked to only see it depreciate over 10 years.

Best of luck my friend!