All Forum Posts by: Anthony Marin

@James Colgan

Hey James, it's called the Ironbound because its surrounded by train tracks and highways and is very easy to see on a map.  The North East corridor train tracks (route 21) is the west border with Route 9 being the border on the east.  Route 78 is the southern border and the Passaic River is the border on the north.  The north western part of the Ironbound is the most expensive area due to Penn Station.  South Ironbound and the industrial area near route 9 is getting a lot of investment recently.  Hope that helps and if I can answer any.other questions about Newark for anyone please feel free to ask.  Thanks

@Jonathan Fouabi

You only have 2 choices if you want to increase the rent.  You can put in for a rent increase through NHA but it will be a small increase.  The other option you have is not to renew the tenants lease and ask them to leave so you can renovate the property and increase the rent.  I would think about this choice before moving forward with option 2.  Getting lower than market rate rent is better than not getting market rate rent.  If this current tenant is paying their portion it may be wise to put in an increase with NHA and get what you can.  The grass isn't always greener...

@Jonathan Marx

Have you used your FHA loan already? If so, I've heard of loans with lower down payments then 25%. If you want I can introduce you to a few mortgage brokers we use and I'm sure they can find you something better than 25%. Assuming you can quality for them. Congrats on the property in Newark, any time I can help a fellow Newark investor I will try my best.

@Gerard Mixon

I agree with @Natalie Schanne & @Ray Reed to encourage you to manage this one yourself for as long as you can.  At a minimum you'll understand all the moving parts to managing a property and you will become a better manager of the property manager when you hire them.  I know exactly what your going through because my first property was a 3 family in Newark that I lived in.  I self managed for a few years then started buying more multis in Newark.  I realized I needed a manager and after meeting with a bunch of them I didn't feel any of them were the right fit for me.  So I started a property management company to manage my properties and a few of my friends investing in Newark.  The advice to manage your own property first is advice I've given to many house hackers and new investors.  Even if its just for a few months you will learn A LOT.  If I can help in any way please feel free to DM me and I will answer any question you have about Newark rentals or property management.  Good luck any maybe our paths will cross one of these days in Newark.

@Tanisha Naughton @Kj Lee

Hi, I migrated from NY to NJ about 15 years ago and I've been investing and managing properties in Newark, NJ for a while now.  I try to help my NY people as much as I can.  Jersey City is very nice but VERY expensive.  Montclair is really nice as well but less urban.  I would stay away from Irvington.  I think Newark is one of the best cities in NJ for investing long term.  Prices are still reasonable with rental and price appreciation rising at a good pace along with solid population growth.  I have some more specific info on Newark in another post I responded to and I will paste that link below.  If I can help either of you in any way please feel free to reach out.  Good Luck to you both on your transition to NJ.

https://www.biggerpockets.com/...

@Joseph Matarazzo

Inventory is tight everywhere.  Are you opposed to buying 3 or 4 unit properties in Newark & Elizabeth?  If so, I would love to hear why as I'm always interested in hearing everyones perspective?  I think those towns are 2 of the best in NJ for multifamily obviously as long as you buy in the right areas.  Proximity to mass transit, NYC and a solid rental base with rent increasing at a solid rate.

@Scott Goulet

Your answer is in your question.  If you're buying properties at a discount due to deferred maintenance and you don't have the money to fix the property how do you expect a management company to do their job adequately if issues keep arising and tenants are continuously calling them?  We've all been there, investing is tough in the beginning because funds can be tight. At some point we all realize that its sooooo much better to spend the money up front because if you don't, you'll wind up spending much more money over time with maintenance calls and tenant turnover.  I am of the opinion everyone should manage their own properties for a little while to see how tough it is, you'll appreciate your PM so much more when you hire them.  Sorry for the tough love but its the truth.  To answer your question directly, you start making money after you go through the cycle 2 or 3 times.  After you do the refinance on your 3rd property the cash flow starts looking real nice but it can take some time and a lot of learning along the way.  Good luck

@Maria Tor

What office at the city of Newark is telling you its an 8 unit?  If its the zoning office they are the ones that matter most.  You can try to take your documents from the state to the zoning office and see if they change it but they are usually tough to deal with and won't make the change.  I'm in this same situation as I bought a 2 family in Newark years ago and my CO states its a 2 family.  I tried to sell the property and the zoning office says its a 1 family and the crazy thing is the tax office has my property as a 3 family (YES I've been paying taxes as a 3 family).  I brought all this evidence to the zoning office and they refused to change the property to a 2 family.  I was told that I have to apply for a variance.  SMH...I am weighing my options with my attorney as we speak.  If anyone has any suggestions on how to handle this I would love to hear it.

@Piero Principe

The best area in Newark is the Ironbound section but finding good deals there can be tough in this market. If I were just starting out now I would look in North Newark in the 07104 & 07107 area codes as close to the Forest Hills section or the Broad St. train station. You can still find some good deals in those areas and the tenant profile is pretty good and getting better. Use your FHA loan to buy a 3 or 4 family as soon as possible (obviously do your numbers and make sure the deal makes sense for you). That loan is an asset that can be used over and over again. Hope that helps.

@Jeffrey Evans

I came home one day (while my wife was 2 months pregnant) and told her I would be liquidating ALL of our retirement accounts (paying the penalties) to invest in rental properties in Newark, NJ.  Her response was a slow "Are you sure?" and without hesitating I responded emphatically I'm POSITIVE!!  The 1st year was a mess as I had 4 deals fall apart but in February of year 2 I bought a turn key 3 family, then in May of that year I bought a 2 family that needed a $70K reno.  In year 3 I was still struggling but I bought 2 more properties that needed work and by the end of that year we finally started seeing the fruits of our labor.

As long as your committed to this Real Estate game your wife will see that and everything will work out...if your patient.  You will get tested and usually right in the beginning to make sure your up for the challenge.  If you can make it through those initial challenges, the dividends this game pays over the long term are SO WORTH THE WAIT.  Good Luck and hope that 1st turn key deal works out for you because that can be the catalyst you need as my turn key deal was for me.