House Flipping in New Jersey?

Question

Hey guys, I’m located in NJ & I wanted some feedback regarding to flipping properties in this state as an investor.

I come to the conclusion that NJ is terrible to be a landlord in, especially with the process to evict someone.

I spoke to a few people who mentioned NJ is great for flipping but I wanted more feedback from others who are familiar with the process here or flipping in general in a state compared to NJ.

thanks

Shawn Mcenteer · Answer

Hi @Jonathan Rivera I will let you know my wife and I have collected every payment of rent on our rental properties for over a decade now in NJ.  New Jersey gets a bad reputation because there are cities with extremely strict landlord laws, people invest in those areas thinking they are getting a good deal because the numbers "look good" on paper, long story short many of these areas are horrible places to invest with some of the strictest landlord laws in the world.  On the other hand  If you know the markets that are more favorable and attract high qualities tenants land lording can be very easy with little to no worries.

Kyle Spearin · Answer

@Jonathan Rivera, I'm not too familiar with NJ but what I do know is that it has very distinct regions. I know that South Jersey and the parts near Philly are way cheaper than North Jersey.

Depending on where you flip, you'll need to determine whether you want to do a volume play (cheaper deals but need to do more to make substantial money) or more expensive markets where one deal can be significant.

Levi Herman · Answer

That I understand. My reply didn’t quote properly. I was asking the lender before why he doesn’t lend in the northern part of NJ.

The rent laws are brutal here thats for sure.

Jacob Sherman · Answer

anywhere is flippable if bought for the right price

David M. · Answer

@Jonathan Rivera

Hmmm... Don't know about other states, but nothing "wrong" with flipping here.  I kinda like it since we have higher property values, there is "something to work with" when looking for profit.  While in the past several years its been a super strong sellers market, at least normally here the market is pretty strong so you know you can sell...

Jonathan Rivera · Answer

Why is what? Regarding if jersey is bad?

If that’s the question, everyone knows blue states are great for flipping and not renting.

Tenant laws are terrible here and don’t favor the landlord.

Levi Herman · Answer

why is that? Other than the higher price points

Bill J Fay · Answer

As a lender, we do not lend on flips in the North half of NJ. We do however lend in the bottom half. Tougher when you get closer to the City.

House Flipping in New Jersey?

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